Shares as Equity? Unlock Home Loans Fast (2026)

In the Australian property market, securing a home loan can be a daunting task, especially when traditional forms of equity such as savings or an existing property aren't sufficient. But what if you could leverage your investment portfolio? Specifically, can you use shares as equity for a home loan? This is a question many prospective homebuyers are asking in 2026 as they seek to maximise their financial resources. Understanding how your share portfolio might play a role in securing a home loan could be the key to unlocking your dream home.

Understanding Using Shares as Equity

Equity is the value of an asset you own outright, minus any debts tied to that asset. Traditionally, equity is built through property ownership, where you have paid down a significant portion of your home loan. However, shares can also be considered a form of equity. These liquid assets can demonstrate financial stability and investment acumen to lenders, potentially serving as a substitute or supplementary form of equity when applying for a home loan.

However, using shares as equity is not as straightforward as using a property. Lenders will scrutinise the portfolio's volatility and liquidity, as well as the borrower's overall financial situation. The key is to prove that your shares are a stable and reliable asset.

Current Market Rates and Requirements

As of 2026, the lending landscape in Australia remains competitive, with interest rates for home loans ranging from 6.49% to 12%, depending on the lender, loan type, and borrower profile. When considering shares as part of your equity, lenders will look at the following:

• The market value of your shares
• The stability and liquidity of your investments
• Your overall financial health and creditworthiness
• The risk profile of the stocks in your portfolio

It's important to note that not all lenders will accept shares as equity. For those that do, they may only consider a percentage of your portfolio’s value, typically around 50%, to account for market volatility. This is where Esteb and Co's access to over 83 lenders can be advantageous, as they can help identify which lenders are open to this form of equity.

Steps to Using Shares as Equity

To leverage your shares as equity for a home loan, follow these steps:

1. Assess Your Portfolio: Evaluate the current value and volatility of your shares. Consider consulting a financial advisor to understand the risk and potential of your portfolio.
2. Research Lenders: Identify lenders who accept shares as equity. Esteb and Co can assist by narrowing down suitable lenders from their panel of 83+ lenders.
3. Prepare Documentation: Gather necessary documents such as recent portfolio statements, proof of ownership, and any relevant tax returns or financial statements.
4. Submit Your Application: Work with a mortgage broker to submit your application, ensuring all documentation highlights the stability and value of your share portfolio.
5. Negotiate Terms: Be prepared to negotiate terms, including the percentage of your portfolio that will be recognised as equity.

Tips and Considerations

• Diversify Your Portfolio: A diverse portfolio with stable and blue-chip stocks may be more appealing to lenders.
• Monitor Market Conditions: Keep an eye on market trends, as significant fluctuations can impact the perceived value of your portfolio.
• Consult Professionals: Engage financial advisors and mortgage brokers to guide you through the process, ensuring your portfolio is optimised for loan approval.
• Consider Other Assets: If possible, combine your share portfolio with other assets to strengthen your application.
• Understand the Risks: Be aware that using shares as equity could expose you to market risks, which could affect your ability to repay the loan if the market takes a downturn.

Frequently Asked Questions

1. Can all shares be used as equity?
   Not necessarily. Lenders are typically more interested in stable and liquid shares, such as those from blue-chip companies.
2. What percentage of my share portfolio can be used as equity?
   Generally, lenders may consider up to 50% of your portfolio value, depending on its stability and liquidity.
3. Are there any risks involved in using shares as equity?
   Yes, market volatility can impact the value of your shares, potentially affecting your loan terms or approval.
4. Do all lenders accept shares as equity?
   No, acceptance varies by lender. It's important to work with a broker like Esteb and Co to find lenders who do.
5. How do I prove the value of my shares?
   You will need to provide recent portfolio statements and possibly financial statements to demonstrate value and ownership.
6. Can I use shares as equity for an investment property loan?
   Yes, some lenders may allow shares to be used as equity for investment properties, subject to their criteria.
7. Will using shares as equity affect my borrowing capacity?
   It can, depending on the lender's assessment of your overall financial situation and the perceived risk of your portfolio.