Could some please confirm if my understanding for using equity to buy a new home is correct?

Currently own a townhouse worth around $650,000 with the mortgage almost completely offset. I want to buy a bigger house for $950,000 and rent out my current place. Using my equity, would I only be borrowing $350,000 for the new home and the value of my current place is making up for the other $650,000?

Thanks in advance