With the Reserve Bank of Australia delivering multiple interest rate cuts in 2025, many homeowners are looking at their home equity in a new light. Lower rates can make it cheaper and easier to access funds you’ve built up in your property—whether for renovations, investment, or other financial goals.
Your home equity is the difference between your property’s current market value and the amount you still owe on your mortgage.
Example:
Property value: $850,000
Mortgage balance: $420,000
Home equity: $430,000
When rates fall, borrowing costs drop. For homeowners, this can mean:
Lower repayments if you already have a variable loan
Improved borrowing power if you’re applying for a new facility
Greater opportunity to refinance to access equity at a more affordable rate
Loan top-up – Increase your existing mortgage balance and receive the extra funds in cash.
Refinance to a new lender – Move to a more competitive loan and borrow additional funds at the same time.
Home Equity Line of Credit (HELOC) – Access funds as needed and only pay interest on what you use.
Renovations or extensions to improve your home
Deposit for an investment property
Debt consolidation to reduce interest costs
Business or education expenses
Borrowing against equity increases your total debt—make sure the repayments fit comfortably in your budget.
Lenders may allow you to borrow up to 80% of your home’s value, but this depends on your income, expenses, and credit profile.
Having a clear plan for how you’ll use the funds can help you get the most benefit.
With interest rates at their lowest levels in years, it could be an ideal time to review your loan and explore whether accessing your home equity makes sense for your situation. A mortgage broker can help you compare options, structure your loan effectively, and take advantage of the current lending environment.
Next step
If you’re curious about how much equity you have, or how best to use it, get in touch. We can guide you through the process and match you with a suitable lender.
