By Oakwood Finance – Award-Winning Mortgage and Finance Brokers
For many Australians, saving a cash deposit is one of the biggest hurdles to purchasing a property. However, if you’ve built a substantial share portfolio, you may have options that allow you to leverage your existing investments rather than selling them outright.
For professionals, executives, business owners and experienced investors, using shares as part of a property purchasing strategy can provide greater flexibility while helping preserve long-term wealth-building opportunities.
At Oakwood Finance, we help clients explore lending solutions that align with their broader financial goals, including strategies that incorporate existing share investments.
Can Shares Be Used as a Property Deposit?
The answer is yes—but not always in the way people expect.
Most lenders require a genuine contribution towards a property purchase and generally do not accept shares directly as a cash deposit. However, there are several strategies that may allow borrowers to use the value of their share portfolio to support a property acquisition.
These strategies may include:
- Selling a portion of shares to create a cash deposit
- Using a margin loan facility
- Leveraging equity from an investment portfolio
- Utilising specialised lending structures
- Combining investment assets with other security
The most appropriate strategy depends on your financial circumstances, risk profile and long-term objectives.
Why Investors Want to Avoid Selling Shares
Many investors are reluctant to liquidate high-performing portfolios to fund a property purchase.
Selling shares can trigger:
- Capital gains tax liabilities
- Loss of future investment growth
- Reduced dividend income
- Portfolio disruption
- Missed market opportunities
As a result, many borrowers seek alternatives that allow them to retain their investment exposure while still accessing the property market.
Leveraging Existing Investments
For sophisticated investors, a share portfolio can demonstrate overall wealth and strengthen a lending application.
While lenders generally require the property deposit itself to be in cash, a substantial investment portfolio may help by:
- Supporting overall financial strength
- Demonstrating asset accumulation
- Improving servicing assessments
- Providing additional security options in some circumstances
Different lenders assess investment assets differently, making lender selection particularly important.
Using Equity Instead of Cash Savings
One strategy commonly used by experienced investors is leveraging existing assets rather than accumulating a traditional savings deposit.
For example, borrowers with substantial investments may:
- Access equity from other properties
- Refinance existing facilities
- Restructure lending arrangements
- Use available investment liquidity strategically
This approach can preserve cash reserves while supporting future investment opportunities.
Executive and Professional Borrowers
High-income professionals often build significant wealth through diversified portfolios that include:
- Australian shares
- International equities
- Managed funds
- Exchange-traded funds (ETFs)
- Employee share schemes
- Listed investment companies
For these borrowers, a finance strategy should consider the complete financial picture rather than viewing assets in isolation.
A boutique finance broker can help identify lenders that are comfortable assessing complex wealth structures and multiple income streams.
Share Portfolios and Borrowing Capacity
A well-established investment portfolio may also support borrowing capacity.
Lenders may consider:
- Dividend income
- Managed fund distributions
- Portfolio value
- Investment history
- Asset diversification
- Liquidity of holdings
However, lender policies vary considerably. Some lenders apply conservative assessment methods, while others may take a more holistic view of investment-based wealth.
The Importance of Risk Management
While leveraging investment assets can create opportunities, it’s important to maintain an appropriate balance between debt and investment risk.
Property and share markets can both experience periods of volatility, making thoughtful structuring essential.
Key considerations include:
- Maintaining adequate cash reserves
- Managing loan-to-value ratios
- Preserving diversification
- Understanding tax implications
- Reviewing debt levels regularly
A successful strategy focuses on long-term financial outcomes rather than simply maximising borrowing capacity.
Why Work With a Boutique Finance Broker?
Using a share portfolio as part of a property acquisition strategy often involves more complexity than a standard home loan application.
An experienced broker can assist with:
- Assessing lender policies
- Structuring lending effectively
- Evaluating borrowing capacity
- Identifying professional lending packages
- Navigating complex income and asset positions
- Developing a long-term wealth strategy
Most importantly, a broker can help ensure your lending structure aligns with your broader investment objectives.
How Oakwood Finance Can Help
At Oakwood Finance, we work with professionals, executives, business owners and investors who want to make smarter use of their existing wealth when purchasing property.
Whether you’re considering selling investments, leveraging existing assets or exploring more sophisticated lending structures, our team can help identify the most suitable approach for your circumstances.
By understanding both your property goals and your broader investment strategy, we can help create a lending solution designed to support long-term wealth creation.
Looking to Purchase Property Without Disrupting Your Investment Portfolio?
Speak with Oakwood Finance today. Our experienced team can help you explore lending strategies that incorporate your existing investments, preserve financial flexibility and position you for future growth.
By Oakwood Finance – Award-Winning Mortgage and Finance Brokers