Perth homeowners with equity above 20% LVR can use that equity as a deposit for an investment property – without needing cash savings. This guide shows exactly how the numbers work in 2026.
For Perth homeowners who have owned their property for 2–5 years, the city’s remarkable 22% annual price growth has created significant equity. Learning how to buy investment property with equity Perth 2026 allows you to use that equity as the deposit for an investment property — without needing to save additional cash. Perth homeowners in Joondalup, Hillarys, and northern corridor suburbs purchased in 2021–2022 may now have $200,000–$400,000 in accessible equity, enough to fund the deposit on multiple investment properties.
The formula to buy investment property with equity Perth 2026 is: current property value × 80% LVR minus current mortgage balance equals usable equity. Example: Hillarys property worth $1,100,000 × 80% = $880,000. Minus current mortgage of $450,000 = $430,000 in usable equity. You can access up to $430,000 by refinancing your current loan to $880,000 and using the additional $430,000 as the deposit and purchase costs for an investment property. On a $700,000 investment property, you need approximately $168,000 for deposit (20%) + stamp duty (~$22,000 investment rate) + costs (~$4,000) = approximately $194,000 — well within the available equity.
The most important structural decision when you buy investment property with equity Perth 2026 is whether to use a cross-collateralised or standalone loan structure. At Strawberry Finance, we always recommend standalone: the equity release from your home loan creates a separate loan account (not added to your existing home loan), which is then used as the deposit for the investment property loan. The investment property has its own, completely separate loan. This means: each property is independently secured; you can sell or refinance one property without affecting the other; and the investment loan interest remains cleanly deductible with no risk of contamination.
To buy investment property with equity Perth 2026 without using LMI, you need enough usable equity to cover 20% of the investment property price plus purchasing costs — typically 22–25% of the target property price. For a $650,000 outer Perth investment property: deposit needed = $130,000 (20%) + stamp duty (investment rate) = approximately $20,070 + legal costs = approximately $3,500. Total equity needed: approximately $153,500. At 80% LVR on the equity property, you need your existing home to have a current market value of at least $191,875 above your existing mortgage balance to access this amount.
When you buy investment property with equity Perth 2026 using an equity release loan, the interest on the equity release loan is tax deductible — because the funds are used to purchase an income-producing investment property. This is the key distinction from refinancing personal debts: the purpose of the equity release is investment, so the ATO allows the deduction. The equity release loan’s interest, combined with the investment property loan’s interest, both form part of your investment property tax deductions. This structure, when done correctly, maximises your total tax deductible interest position.
At Strawberry Finance, every buy investment property with equity Perth 2026 engagement starts with a valuation of the existing property, a usable equity calculation, a standalone loan structure recommendation, and a full serviceability assessment for both the equity release and investment property loans. We model the combined impact on your cashflow, tax position, and future borrowing capacity before recommending any equity release. Call 0457 133 453 to discuss your equity position and investment options.
Yes — you can access equity from an existing investment property to fund the deposit for a new investment property, following the same 80% LVR calculation. The equity release from the investment property is a deductible investment purpose borrowing. However, lenders apply slightly stricter LVR rules for investment-to-investment equity access — typically capping at 80% of the investment property’s value rather than owner-occupier rates. Serviceability for multiple investment loans is also assessed more conservatively.
Yes — when you refinance to release equity, your existing home loan balance increases (from the current balance to the new, higher balance that includes the equity release). This increases your monthly repayments on the home loan, or the interest-only payment on the equity release component. For example, releasing $150,000 at 5.9% on an equity release component adds approximately $737.50/month in IO repayments on the equity loan. This additional cost needs to be factored into your serviceability assessment before accessing the equity.
Yes — equity release can be used for both investment property deposits and owner-occupier renovations. However, the tax treatment differs: equity used for investment purposes generates a tax-deductible interest liability; equity used for renovations of your own home generates non-deductible interest. If you are considering using equity for both, structuring the loans separately (one for investment, one for renovation) is important to maintain clean tax deductibility on the investment portion.
If Perth property values fall, your usable equity reduces — potentially below the 80% LVR level. At that point, you would be in negative equity on the equity release portion. Most lenders do not make margin calls on residential property loans (unlike investment loans secured by shares), so you would not be forced to repay immediately. However, you would be unable to refinance or access further equity until values recover. This is why conservative LVR management (staying well below 80%) is important when accessing equity in a rising market.
Accessing equity through a home loan refinance typically takes 4–8 weeks from first contact to settlement. The process involves: property valuation (1–5 business days), refinance application and assessment (5–15 business days), formal approval, and settlement. If you are using the equity to fund an investment property purchase simultaneously, the two transactions can be coordinated to settle at the same time — your broker coordinates both the equity release and investment loan to settle together.
Yes — every dollar of equity release adds to your total debt and monthly repayments, which reduces your future borrowing capacity. Serviceability assessments at lenders include the equity release loan repayments as existing liabilities. Before accessing equity, Strawberry Finance models the impact on your future borrowing capacity — to ensure the equity release for this purchase does not prevent you from accessing finance for the next one.
Note: This article is intended to provide general information only. It does not take into account the financial situation, objectives, or needs of any individual reader and must not be relied upon as financial product or credit advice. While every effort has been made to ensure the accuracy of the information provided, some details may change over time or may not always reflect the most current market conditions. Readers should consider seeking independent financial or professional advice before making any financial decisions based on this information.
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