What equity is
Equity is the difference between your property value and what you owe. Lenders usually allow borrowing up to a set percentage of value, and the usable equity is the amount above your current loan within that limit.
How it can work
Some investors borrow against existing property to fund a deposit and costs on the next purchase. Structuring matters: how loans are split and secured can affect flexibility, tax records and risk.
Risks to weigh
Borrowing more increases repayments and exposure to rate changes and vacancy. Property values can fall. Interest rate rises, repair costs and periods without tenants all need a buffer.
Get advice first
Tax treatment depends on your circumstances, so speak with a licensed tax adviser. A broker can explain borrowing power, lender policy on rental income and sensible loan structure.