Popular ways
New Car
Skip the 9% car loan.
Car loans in Australia commonly sit well above home-loan rates. If you have usable equity in your home, drawing a modest amount from a refinance can dramatically cut the interest cost of a vehicle — but only if you treat the drawdown like a car loan, not a mortgage.
Things to consider
- A car depreciates fast, but a 30-year mortgage draw doesn't — pay the vehicle portion down aggressively (or hold it in an offset).
- Compare the total interest of both options over the actual expected life of the car (5–7 years), not just the headline rate.
- Novated leases, dealer finance and personal loans all have different tax and cashflow implications — a broker or accountant can compare properly.
- Ensure comprehensive vehicle insurance is in place — the lender's security is your property, not the car.
Related equity uses
Three more ways homeowners commonly put usable equity to work.
Explore whether new car could work for you — complimentary, no obligation.
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