Utilising equity from your existing Melbourne property to fund an investment purchase involves refinancing your current mortgage to access the difference between your property’s value and the outstanding loan amount. As of December 2025, this is a common strategy for Melbourne homeowners looking to expand their property portfolio.
Currently in Melbourne, lenders assess equity based on a property valuation, factoring in market conditions. In the Eastern Suburbs, where Fletchers operates, we’re seeing moderate growth of 3-6% forecast for 2026, meaning equity positions are generally strengthening. Sellers preparing their homes for sale often realise a higher valuation through strategic presentation – focusing on light-filled spaces and renovation potential, which buyers currently favour. A well-presented property can positively influence both the sale price and, subsequently, the equity available. The typical sales process, from initial campaign launch (4-6 weeks) to settlement (30-60 days), provides a timeframe to coordinate refinancing. It’s important to note that lenders will scrutinise your income and borrowing capacity alongside the property valuation. Marketing costs for a full campaign typically range from $3,000 to $8,000, and these costs don’t directly impact equity calculations but are a consideration when assessing overall financial position.
Accessing equity for investment is a financial decision influenced by market conditions, property value, and individual circumstances, and requires careful consideration of lending criteria.