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ClientPaul & Mary (for the purpose of this case study)Year2024AuthorAllfin FinancialShare

Client profile:

Paul and Mary purchased their 3-bedroom house in 2011 for $1.1M, putting down a 20% deposit of $220,000 and taking out a loan for the remaining $880,000. In 2014, Paul purchased his own business, and the couple focused on growing the business and paying down their debts.

The Allfin approach:

Paul and Mary recently decided to explore the investment property market. We arranged a meeting to discuss their options and financing strategies.


The couple needed to understand how they could leverage their existing home equity to finance an investment property purchase while managing their debt repayments.

Exploring alternatives:

A valuation of their home estimated the value at $2.1M. Over the years, Paul and Mary had paid off $500,000 of the original loan, leaving $380,000 owing on the property. This valuation, minus the outstanding loan, provided them with $1,720,000 in equity.


We refinanced their home based on its current value. After confirming they could afford the repayments, they were able to borrow an additional $1,100,000. Their total lending amounted to $1,480,000, maintaining a loan-to-value ratio of less than 80%. Leveraging our extensive industry connections, we introduced them to a Buyers Advocate who conducted thorough research to find the right investment property.


The refinancing and our introduction to a Buyers Advocate allowed Paul and Mary to buy an investment property for $900,000. This amount covered stamp duty, other expenses, and surplus funds for cosmetic renovations. They consulted a Buyers Advocate who researched and found the right investment property. The additional repayments were partially covered by the rent generated from the investment property, which also has long-term capital growth potential. By taking out an interest-only loan for the investment portion, they could better manage their outgoings and cash flow while prioritising paying off their owner-occupied home loan.

Ready to explore your investment opportunities? Contact the Allfin team for your finance needs today.

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Mark Churchill is a Credit Representative (Credit Representative Number 401139) of BLSSA Pty Ltd (Australian Credit Licence Number 391237). Diem Le is a Credit Representative (Credit Representative Number 483969) of BLSSA Pty Ltd (Australian Credit Licence Number 391237).