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Usable Equity Calculator

See how much of your property's equity you might be able to use, based on its value, what you owe and the loan-to-value ratio a lender may allow. Results are illustrative and based on the figures you enter, not financial advice, a quote or an approval. When you're ready, send your results to Christian and he'll talk you through your options.

Using the usable equity calculator

  1. Enter your property’s estimated value and the balance of any loans secured against it.

  2. Choose the maximum loan-to-value ratio (LVR) a lender may allow; 80% is the usual starting point.

  3. Deduct an allowance for borrowing costs or an additional safety margin. It reduces the amount shown as available; it does not set aside a separate cash reserve.

  4. The calculator shows the equity you may be able to use, with an optional repayment check that includes a rate buffer.

What it doesn’t include

  • Whether you can afford the extra borrowing; lenders also assess your income and expenses.

  • A lender’s valuation, which may differ from your estimate.

  • Lenders mortgage insurance (LMI), which usually applies above 80% LVR.

  • Any restrictions a lender places on how the funds can be used.

Questions people ask

What is usable equity?

Equity is the difference between your property’s value and what you owe on it. Usable equity is the part a lender may let you borrow against, usually up to 80% of the property’s value, less what you already owe.

Why is 80% the usual limit?

Borrowing above 80% of the property’s value usually means paying lenders mortgage insurance, and some lenders set lower limits for certain properties or purposes.

Can I use equity for an investment property deposit?

Often, yes, subject to the lender’s assessment. How the loan is structured matters, including for tax, so it is worth getting advice from Christian and your accountant before you proceed.

Does having equity mean I can borrow it?

Not on its own. Lenders also need to be satisfied that you can afford the repayments on the total borrowing.

Related: Investment loans · Refinance calculator · Borrowing capacity calculator · All calculators

General information only. It does not take your objectives, financial situation or needs into account.

READY TO DISCUSS YOUR RESULTS?

Calculator figures are a guide, not a credit assessment. Tell us what you're planning and we'll help you understand what the numbers mean for your circumstances.

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