Calculators
Equity calculator
Equity is the slice of your property you actually own: its value minus what you still owe. Enter your figures below to estimate your total equity and, more usefully, how much of it lenders would typically let you put to work.
Usable equity at 80% LVR
$0
the amount you could typically borrow against without Lenders Mortgage Insurance, subject to the lender's valuation and your ability to service the larger loan
Total equity
$0
property value minus loan balance
Current LVR
0%
Available above 80% LVR (LMI usually applies)
$0
borrowing in this range usually attracts Lenders Mortgage Insurance. Premiums vary widely by lender, insurer, loan size and LVR, so we don't show a dollar estimate. Ask us and we'll get real figures for your situation.
This calculator gives estimates for general information only. It is not credit advice or an offer of credit, and it does not take into account your objectives, financial situation or needs. Results depend on the figures you enter and the assumptions shown below, which you can edit. Actual amounts will vary with lender fees, charges and credit criteria. Consider your circumstances and seek advice before acting. Talk to us and we'll search for options available to you across 60+ lenders.
The property value here is your own estimate; a lender will rely on its own valuation, which can differ. Usable equity is a guide to typical lending limits only. How much you can actually borrow also depends on your income, expenses and the lender's assessment of the larger loan. Borrowing above 80% of the property's value usually attracts Lenders Mortgage Insurance. Premiums vary so widely by lender, insurer, loan size and LVR band that any dollar figure here would be a guess, so this calculator deliberately does not show one.
Assumptions (you can change these)
Every figure this calculator relies on is editable: the property value and loan balance in the form above, and the two lending limits below. The limits reflect common Australian lending practice, not any particular lender's policy. Individual lenders set their own caps, which vary by property type, location and loan purpose.
Usable equity is the typical no-LMI limit multiplied by the property value, minus the current loan balance, never below zero. The "available with LMI" band is the further amount up to the upper limit. Equity above the upper limit typically cannot be borrowed against; it stays yours and is realised when you sell.
Accessing equity means borrowing more, which increases your repayments and total interest. Fees, charges and any Lenders Mortgage Insurance premium are not modelled. If the loan balance is higher than the value entered, total equity shows as negative.
Plain English
How home equity works
If your home is worth $800,000 and you owe $400,000, your total equity is $400,000. But lenders won't let you borrow against all of it. Most will lend up to 80% of the property's value without Lenders Mortgage Insurance, so the equity you can typically put to work, your usable equity, is 80% of the value minus what you owe. In this example that's $640,000 minus $400,000, or $240,000.
Equity grows two ways: your repayments reduce the loan, and (hopefully) the property's value rises. Many owners build significant usable equity without noticing.
What people use equity for
- Renovations. Fund a kitchen, extension or granny flat at home-loan rates instead of personal-loan rates, and potentially add value to the property at the same time.
- The next home. Usable equity can form part or all of the deposit on your next purchase, sometimes without selling first.
- An investment property. Equity in your home is the most common way Australians fund the deposit and costs on a first investment property.
Going above 80%
Some lenders will lend beyond 80% of the value, commonly up to about 90% when accessing equity, but Lenders Mortgage Insurance usually applies. LMI protects the lender, not you, and the premium depends on the lender, the insurer, the loan size and the LVR band. Because it varies so much, we don't publish premium estimates. If you're weighing it up, ask us and we'll get actual figures for your scenario.
Things to weigh up
- Accessing equity is still borrowing. Repayments and total interest go up, and the lender must be satisfied you can afford the bigger loan.
- The bank's valuation may come in below your estimate, which shrinks usable equity.
- Using equity for an investment or renovation should stack up on its own merits. We can help you run the numbers.
Curious what your equity could do? We'll check your likely usable equity, compare options across 60+ lenders and explain it all in plain English.
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