For homeowners who have been paying down their mortgage for several years, the equity sitting in their property can be one of the most powerful tools available for building wealth — if it’s accessed and structured correctly. Iain and Jordan knew they had equity to work with. They came to Lagos Financial to turn that equity into an investment deposit, without compromising the financial stability they’d worked hard to build.
The Challenge
Iain and Jordan wanted to access equity from their primary residence (PPOR) to fund a deposit on an investment property with a budget of up to $600,000. But accessing equity isn’t simply a matter of asking for cash — the structure of the home equity loan determines whether it supports or undermines your broader financial goals.
They also wanted to refinance their existing home loan at the same time, which meant evaluating lenders not just on rate, but on their combination of valuation generosity, cash-back offers, and borrowing capacity assessment.
Our Strategy
After reviewing the market, Victor identified the St. George Advantage Package as the most competitive option for Iain and Jordan. The key reasons were:
- Property valuation: St. George provided a favourable valuation of the PPOR, unlocking $159,000 in accessible equity — more than competing lenders were willing to offer.
- Cash-back incentive: St. George offered a $4,000 cash-back at settlement, compared to $2,000 from other lenders — a $2,000 real-dollar advantage.
- Borrowing capacity: The St. George assessment methodology allowed for the highest total borrowing limit relative to Iain and Jordan’s income and existing commitments.
The loan was structured in two parts. The PPOR loan was refinanced to a new 30-year term with principal and interest repayments, steadily reducing their non-deductible debt. The equity release portion was set up as interest-only for the first three years — keeping repayments low while the funds were deployed into a new investment property. A redraw and offset facility was also included, giving them flexibility to manage cash flow across both loans efficiently.
This structure aligns with a core principle of property investment finance: focus principal repayments on non-deductible (home) debt first, while keeping deductible (investment) debt interest-only for as long as it makes sense.
The Outcome
Iain and Jordan successfully refinanced their PPOR with St. George, released $159,000 in equity, and received a $4,000 cash-back bonus at settlement. Their loan is now structured to maximise tax deductibility on the investment portion while steadily reducing their home loan balance. They are now actively using those funds to begin their property investment journey with a clear, structured financial foundation underneath them.
In their own words:
“Lagos Financial were very proactive and made the process for refinancing our loan really simple. They took a lot of the stress out of the process compared to when we went through it ourselves.”
Key Takeaways
- Not all lenders value your property the same way. The valuation a lender assigns directly affects how much equity you can access. Shopping the market via a broker can unlock significantly more equity than going direct.
- Structure equity release as a separate loan split. Keeping the equity cash-out as a distinct interest-only split maintains clean separation between deductible and non-deductible debt — a key requirement for maximising tax deductions.
- Cash-back offers add real value. A $2,000 difference in cash-back between lenders is money in your pocket at settlement. Factor this into your total cost comparison, not just the rate.
Could This Strategy Work for You?
Every client’s situation is different. Lagos Financial works with 60+ lenders to structure the right solution for your goals. Book a free strategy session to discuss your options.
About the Author
Victor Lagos is a licensed mortgage broker (ACL 546774) and founder of Lagos Financial, with close to 20 years of finance industry experience since beginning his career at Bluestone Mortgages in 2006. A member of the Finance Brokers Association of Australia (FBAA) since 2015 and the Australian Financial Complaints Authority (AFCA — 98399), Victor helps Australians build wealth through tailored home loan and property investment strategies, working with 60+ lenders nationwide. Last reviewed: March 2026.
Victor Lagos
Founder & Mortgage Broker, Lagos Financial
Victor Lagos is a licensed mortgage broker and property investment strategist. As founder of Lagos Financial, he helps Australians build wealth through tailored finance solutions, working with 60+ lenders nationwide. He also hosts the Debt to Financial Freedom podcast.
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