Key takeaways:
More homeowners are accessing equity by increasing their loan amount when refinancing, rather than completing a like-for-like loan switch.
Equity can support a range of financial goals, including renovations, debt consolidation or future property plans, depending on individual circumstances.
Having equity doesn't guarantee access as lenders still assess borrowing capacity before approving additional funds.
Accessing equity increases your loan balance, so it's important to consider repayments, cash flow and long-term financial goals before borrowing more.
An Aussie Broker can help you understand your options and assess whether accessing equity through refinancing may be appropriate for your circumstances.
For many homeowners, refinancing has traditionally been associated with securing a lower interest rate.
But new Aussie internal analysis suggests a growing share of borrowers are increasing their loan amount when refinancing, pointing to a rise in homeowners accessing equity for a range of financial goals.
While the data doesn’t reveal exactly how borrowers used additional funds, it suggests refinancing may increasingly be helping some homeowners unlock the value they’ve built in their property.
More homeowners are changing the size of their loan when refinancing
Aussie analysis of settled refinance applications without a linked property purchase suggests more homeowners are increasing their loan amount when refinancing, rather than completing a simple like-for-like loan switch.
Pure refinances, where the new loan amount was within 2% of the previous outstanding balance, fell from 31.2% of refinance activity in July 2024-June 2025 to 25.6% in July 2025-May 2026.
At the same time, the share of borrowers increasing their loan amount rose from 68.8% to 74.4%, suggesting more homeowners may be using refinancing to access equity or restructure their finances.
Among borrowers who increased their loan amount when refinancing, the proportion accessing more than $100,000 rose from 33.3% to 40.5%.
Meanwhile, among those taking out more than $100,000, the share accessing $250,000 or more increased from 28.5% to 30.6%.
Jordan Hagicostas, Aussie Broker at Aussie Prospect, said the motivations behind refinancing have evolved over recent years.
“I think the conversation now is much more a strategy conversation than a necessity conversation,” he said.
“People are really clued in now to the fact that refinancing for a purpose is the way to go, as opposed to refinancing for the sake of it.”
Why homeowners are accessing equity
Alya Manji, Aussie Broker at Aussie Hurstville, said many of her clients are refinancing for purposes beyond simply obtaining a lower interest rate.
“A lot of them were increasing for personal use, renovations or a deposit for the next purchase,” she said.
Manji said reasons for accessing equity vary significantly between households.
“Mostly drawing equity as a deposit for the next investment purchase,” she said. “There has been such a hype around the concept of building a property portfolio and investing alongside the use of buyers agents. We also see renovations to owner-occupied properties.”
Others are using equity to renovate owner-occupied homes or consolidate debts, depending on their circumstances.
Why some homeowners are choosing to improve rather than move
For some households, accumulated equity may provide an alternative to upgrading into a new property.
Rather than taking on the costs associated with buying and selling, some homeowners are choosing to improve the property they already own.
For borrowers considering this approach, understanding how much equity they may have available, and how accessing it could affect their repayments, may help determine whether renovating is a realistic alternative to moving.
What to consider before accessing equity
Accessing equity through refinancing may help homeowners fund renovations, consolidate debt or achieve other financial goals. However, it also increases the amount borrowed and should be considered carefully.
Before accessing equity, borrowers may wish to consider:
whether the additional borrowing supports a clear financial goal
how the higher loan balance could affect repayments
whether the extra debt fits within their long-term financial plans
whether there are alternative ways to fund the expense
For borrowers who haven't reviewed their loan in several years, it may also be worth understanding whether changes in their property value, loan balance or financial circumstances have created new opportunities.
Hagicostas said many homeowners may be sitting on more equity than they realise.
“If you haven't reviewed your home loan or your property value in the last few years, you're probably sitting on a considerable amount of unrealised equity that you could use to take your next step,” he said.
An Aussie Broker can help homeowners understand what options may be available and how those choices could affect their borrowing position over time.
Having equity doesn't mean you can automatically access it
While many homeowners have benefited from rising property values over recent years, having available equity does not necessarily mean those funds can be accessed.
Manji said this is one of the most common misconceptions she encounters.
"Although you have available equity, to access that equity it needs to fall within your borrowing capacity."
“Clients need to remember that we are still borrowing equity. It is still a loan with interest once it is drawn back out.”
You might also be interested in: How to use your equity in your home
Lenders will generally assess income, expenses, existing debts and overall borrowing capacity before approving additional borrowing. This means homeowners may not be able to access all available equity, even if their property has increased significantly in value.
Borrowing more may create opportunities, but it also comes with trade-offs
Accessing equity may help fund future plans, but it can also increase loan balances, repayments and the amount of interest paid over time.
Manji said borrowers should consider how additional debt fits within both their current budget and longer-term financial goals.
"When my clients come to increase the loan for other purposes, a strong point of discussion is understanding where their current home loan balance and repayment sits and whether it's at a comfortable spot for the household,” she said.
She said homeowners should also think carefully about how long they intend to carry any additional debt.
“You don't want an increase to your loan that was for a car purchase to become a debt that you repay for 30 years with interest,” she said.
An Aussie Broker can help homeowners understand how increasing their loan amount may affect repayments, affordability and future borrowing capacity before making a decision.