Equity tool

Usable Equity + Calculator

Get a rough sense of how much could be sitting in your home, and where your loan-to-value ratio sits today. If you're thinking about an , this is a helpful first check.

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Use a recent appraisal or realistic estimate — this tool does not verify property values.

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Understanding usable equity and LVR

Your usable equity is the amount your property is worth minus 80% of what you'd need to leave secured against it. The 80% figure isn't arbitrary — it's the threshold at which most Australian lenders start charging Lender's Mortgage Insurance (LMI), which can add tens of thousands to the cost of borrowing. Staying at or under 80% LVR unlocks the sharpest rates on the market, avoids LMI, and gives you a legitimate lever to renovate, invest, or consolidate without selling the family home.

When to use it

  • You've owned the property for 3+ years and property values in your area have moved — the equity story is almost never what it was on settlement day.
  • You're weighing up whether to sell to raise cash versus tapping equity — knowing your usable number keeps the option open.
  • You want to buy an investment property and need to know how much deposit you can pull from your existing home without triggering LMI.

What the result actually means

  • Usable equity is what you could realistically access, not what the property is worth on paper. A property with $600k in gross equity might only have $250k of usable equity at 80% LVR.
  • If the number surprises you, that's normal — most homeowners underestimate their usable equity because they think in gross terms, not lender-assessed terms.
  • The LVR percentage tells you how leveraged the property is. Below 80% is the goal; below 60% opens up specialist and low-doc products.

What it doesn't tell you

  • The calculator uses the property value you enter — actual lender valuations can come in 5–10% lower than owner estimates. We use professional valuers when it counts.
  • Some lenders will lend above 80% LVR without LMI in specific professions (doctors, accountants, engineers) — that changes the math substantially.
  • This shows what's available to borrow, not what you should borrow. Borrowing capacity depends on income, expenses, and existing commitments too.

Sensible next steps

  • Take the equity number and match it against a real goal — renovation, investment, consolidation — before you decide to draw on it.
  • Get a complimentary Equity Snapshot to see what a real lender panel will actually approve, at what rate, against your specific property.

Important — General Information Only

This information is general in nature and does not take into account your personal objectives, financial situation or needs. It is not personal advice, credit advice, tax advice or legal advice, and is not a recommendation to enter into, refinance, or remain in any particular credit contract. Any figures, calculations, or projections shown are simplified examples for illustration only — they are not guarantees or forecasts, and actual outcomes will vary based on your circumstances and the lender's assessment.

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