Finance
Property equity release
Property equity release means borrowing against the difference between what a property is worth and what is owed on it. It can be done by refinancing, adding a second mortgage or taking a short-term loan. Each option changes cost, risk and how the debt is repaid.
Written by Richard Goodwin, Founder and author, PrivetReviewed by Privet Team, Editorial review team, PrivetLast reviewed 23 October 2026
Ways to release equity
| Option | Suits | Watch for |
|---|---|---|
| Refinance to a larger loan | Longer-term needs | Break costs, new rate on all debt |
| Second mortgage | Keeping a good first loan | Higher pricing, combined LVR |
| Caveat loan | Very short needs | Weaker security, cost |
Weighing equity release finance
Equity release finance should be weighed against cost, cash flow and the exit. Many owners ask how to release equity from property without losing a good first mortgage rate; a second mortgage is the usual answer, at higher cost on the extra amount. Model it with the second mortgage calculator.
Using a home as security
If the property is your home, consumer credit laws may apply and the stakes are higher. Equity release on a home for business purposes raises extra legal issues, so take your own legal advice.
Questions to answer first
- How much do you need, and for how long?
- How will it be repaid?
- What is the combined loan-to-value ratio?
- What happens if the exit is late?
Frequently asked questions
How much equity can I release?
It depends on value, existing debt and each lender's limits. Privet does not state typical LVRs.
Is equity release only for retirees?
No. In this context it simply means borrowing against existing equity for any lawful purpose.
Does equity release affect my first mortgage?
A refinance replaces it; a second mortgage sits behind it and may need the first lender's consent.
What are the risks?
Higher debt, higher cost and risk to the property if the loan is not repaid.
Can Privet release equity for me?
No. Privet is not a lender. You can send one enquiry to finance providers.
Related guides
- Second mortgage loans in Australia
- Property refinance with private and non-bank lenders
- Caveat loans in Australia
- Commercial property refinance and equity release
Glossary: equity, combined lvr, second mortgage
Run the numbers
Test cost and timing with the matching calculator before you speak to anyone. Then send one enquiry to finance providers.
Cite or share this guide
Privet (2026). Property equity release. Retrieved from https://privet.com.au/finance/equity-release
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