Hi after moving to western sydney a few years ago, i want to move back closer to my parents in south west sydney. I called the bank yesterday to get an idea of what I need to do, but he pretty much just confused me My house is worth approx 400k and my morgage is about 225k, Im looking to get a house worth about the same over in western sydney or maybe a little bit more. I have no other debts, credit cards etc. I have 1 dependant and am single. The bank yesterday said I would need to sell my current home and get a new house that way... but I remember reading something a while ago on equity loans. I earn enough now but its not classified as employed to get a home loan, so will be heading back into fulltime employment expecting to earn at least 50k a year, Im confident in getting employment. When i go to the St Georges how much can i borrow calculator I enter all the details like I have no house loan anymore and its says I can borrow 344k so with the difference from the sale of my house I can get my new house. But is it possible to keep my current house and rent it out I could probably get about 380pw for it and then buy another house to live in using a equity loan. Now here is my problem in understanding... not really sure how the bank calculates how much they can lend me vs my salary and the equity in my current home. Can anyone help me?