It is pretty standard for investors to use their home equity as a deposit, and most banks will accept equity in your home as collateral. This can potentially allow you to borrow the property’s total purchase price, including all costs (stamp duty and other fees), without providing any cash. However, when you use your home as collateral, if you can not fund the mortgage for your investment property, both your investment property and the house will be at risk. There are still many options out there that will better suit your requirements. Get in touch with one of our mortgage brokers, and they will help you out.

*It applies to investment property only. In straightforward terms, if expenses are more than the income you earn from holding investment property in that particular financial year, it is called negative gearing. It is a ‘tax loss’ that you can claim in your tax return every year if you hold on to an investment property. It applies throughout life.