When it comes to the process, buying a second property isn’t too different to buying your first home. Just like before, you’ll likely need to have a 20% deposit available to avoid paying Lenders’ Mortgage Insurance (LMI) and apply for another home loan.
One of the handy things about buying your second property is that instead of saving cash for your new deposit, you might be able to use the equity in your existing home. Keep in mind, this will depend on the value and purpose of the house you’re looking to buy, plus the amount of equity you’ve got in your first property. Remember, if you’re selling your existing home and your next deposit is more than the funds from the sale of your house, you’ll need to chip in some cash as well.
Let’s take a look at the ways you can get it done.