Yes, you can often use equity in Australian property to help buy in Dubai. The usual approach is to borrow more against your Australian home or investment property, through a top-up with your current lender, a cash-out refinance to a new lender or a separate loan split, and use those funds as the deposit or purchase money overseas. The Australian property is the security for the loan, not the Dubai property.
The lender will ask what the funds are for, and policies on overseas purchases vary between lenders. You also need to show you can repay the larger debt after the lender applies its serviceability buffer. Beyond the loan, currency movements, the Dubai buying process and Australian tax on overseas income all need separate planning.
What is usable equity?
Equity is the difference between what your property is worth and what you owe on it, and usable equity is the part a lender may let you borrow against while staying within its loan-to-value ratio (LVR) limits and policy. Many lenders use 80% LVR as a planning point, because borrowing above that usually involves Lenders Mortgage Insurance.
Illustrative example: estimating usable equity
This is a hypothetical example for illustration only. It is not a valuation or a lending offer.
| Item | Amount |
|---|---|
| Hypothetical lender valuation | $1,200,000 |
| 80% of the valuation | $960,000 |
| Current loan balance | $650,000 |
| Estimated usable equity before costs | $310,000 |
The final figure depends on the lender’s own valuation, fees, policy and, most importantly, whether you can service the total debt. For more detail on the calculation, read our cash-out refinance guide.
How can you release equity from Australian property?
There are three common structures. Which one suits you depends on your current lender, your loan pricing and how you want to track the borrowed funds.
| Option | How it works | Things to consider |
|---|---|---|
| Loan top-up | Your current lender increases your existing loan | Can be simpler, but you may not get the sharpest pricing |
| Cash-out refinance | A new lender pays out your loan and lends extra on top | Lets you compare lenders, but involves a new application, valuation and costs |
| Separate loan split | The extra borrowing sits in its own loan account | Keeps the overseas funds separate from your home loan, which your accountant may prefer |
Moneysmart’s guide to switching home loans explains the costs to compare when moving lenders (checked October 2026). If you are weighing a refinance, our refinancing page covers how we compare options.
Do Australian lenders allow equity to be used overseas?
Many do, but not all treat it the same way. Under responsible lending rules, lenders need to understand your requirements and objectives and make sure the loan is not unsuitable for you (ASIC, checked October 2026). In practice, that means the lender will ask what the money is for.
Things that can vary between lenders include:
- Whether they accept an overseas property purchase as a loan purpose.
- The maximum LVR they allow when funds are going offshore.
- How much evidence they want about the purchase, such as a contract or payment schedule.
- Whether they count any rental income from the overseas property, and how much.
Australian lenders generally take Australian property as security, so the Dubai property itself usually does not support the Australian loan.
Does servicing still apply with the new debt?
Yes. The lender assesses whether you can repay your total debt, including the new borrowing, at an assessment rate. APRA’s guidance says lenders should test new loans at least 3 percentage points above the loan rate (APRA APG 223, checked October 2026).
Overseas rental income may be counted at a reduced rate or not at all, depending on the lender. If you plan to rely on Dubai rent to cover repayments, check that assumption early. Our guide to how much you can borrow explains the serviceability test in more detail.
If your home loan is under the Australian Government 5% Deposit Scheme, the official information guide says that borrowing more against the property from your participating lender ends the government guarantee (Information Guide, checked October 2026). Factor in any LMI or other costs before going ahead.
What are the currency and cross-border risks?
Borrowing in Australian dollars to buy an asset priced in another currency adds risk:
- Exchange rates. If the Australian dollar falls, the purchase or later payments can cost more in AUD terms. If you sell later, the proceeds may convert back at a different rate.
- Payment schedules. Off-the-plan purchases often involve staged payments, so you need funds available at each stage.
- Transfer costs. International transfers can involve fees and exchange spreads.
- Legal differences. Contracts, ownership rules and dispute processes follow local law, not Australian law.
- Distance. Managing a property and tenants from Australia needs reliable local support.
What tax questions should you raise with your accountant?
This is general information, not tax advice. The ATO says that if you are an Australian resident for tax purposes, you generally need to declare all income you earn, including income from overseas (ATO foreign income, checked October 2026). The ATO also explains how your tax residency is worked out (ATO tax residency) and what applies if you live overseas but remain an Australian resident (ATO).
Questions worth asking your accountant or tax adviser:
- How will rental income from the Dubai property be treated in my Australian tax return?
- Is the interest on the equity I release deductible, and how should I structure the loan split?
- How would capital gains on a future sale be treated?
- Should the property be held in my name, jointly or another way?
- What records do I need to keep for overseas income and costs?
How are Dubai property purchases registered and regulated?
Property transactions in Dubai are registered with the Dubai Land Department (DLD), the government body responsible for real estate registration (Dubai Land Department, checked October 2026). The Real Estate Regulatory Agency (RERA), which sits under the DLD, regulates the sector, including real estate brokers (RERA).
Before paying any money, check that the agent or broker you deal with is licensed and that the developer and property can be verified through official channels. Get independent legal advice in Dubai on the contract, fees and ownership rules. NewGen handles the Australian finance side only. Our Dubai property page explains how the Australian lending and Dubai property conversations are kept separate.
Step by step: how to use Australian equity for a Dubai purchase
- Get a realistic valuation range for your Australian property and confirm your current loan balance.
- Estimate usable equity and test servicing on the full new debt.
- Check lender policy on overseas purchases before you sign anything in Dubai.
- Choose the structure: top-up, cash-out refinance or separate split.
- Speak to your accountant about tax and how to hold the property.
- Apply and get approval for the equity release, including the lender’s valuation.
- Get Dubai legal advice and verify the agent, developer and property.
- Plan currency transfers and keep a buffer for staged payments and costs.
- Settle and register the purchase through the official Dubai process.
Common mistakes to avoid
- Signing a Dubai contract or paying a reservation fee before your Australian finance is approved.
- Assuming every Australian lender treats overseas purposes the same way.
- Relying on Dubai rent to service the loan without checking the lender will count it.
- Mixing borrowed funds with personal funds, which can make tax records harder.
- Taking the maximum equity available and leaving no buffer for rate rises.
- Skipping independent legal advice in Dubai.
If the Dubai purchase is part of a wider investment plan, our investment loans page covers how we structure lending for investors. All lending is subject to lender approval, and lending criteria, fees and charges apply.