Equity Calculator

Use this calculator to see if you have available equity in your current properties to purchase further houses

Your Current Properties

Property 1

$
$

Target Purchase

$

Total Property Value

$800,000

Total Mortgages

$400,000

Current LVR

50.0%

Usable Equity (at 80% LVR)

$240,000

Deposit Required

$130,000

Available for Purchase

$110,000

How Usable Equity Works

Usable equity is calculated as 80% of your property value minus your current mortgage. Most banks will lend up to 80% of your property value. The difference between this and what you currently owe can be used as a deposit for another property.

What usable equity really means

Total equity and usable equity are not the same thing. You may have strong paper equity in a property, but lenders often only allow part of it to support the next purchase depending on LVR rules and servicing strength.

  • Total equity is property value minus mortgage balance.
  • Usable equity is the portion that remains once lender LVR buffers are applied.
  • Investment purchases may need a larger deposit than owner-occupied purchases.

What this calculator does not decide

Equity is only one side of the puzzle. Even if there is enough usable equity, a lender still needs to be comfortable with income, living costs, existing debt, and the structure of the new lending.

  • It does not test servicing or bank affordability rules.
  • It does not account for valuation changes, legal costs, or refinance fees.
  • It should be treated as a planning guide before getting tailored advice.

Equity calculator FAQs

What is the difference between total equity and usable equity?

Total equity is the gap between your property value and mortgage balance. Usable equity is the portion a lender may actually let you leverage after applying LVR limits.

Can I use equity instead of saving a cash deposit?

Often yes. Existing property equity is commonly used to support the deposit for an upgrade or investment purchase, although lender policy and servicing still matter.

Does enough equity guarantee approval?

No. Equity helps, but approval still depends on income, expenses, debt position, credit history, and the lender's current policy settings.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Actual loan terms, rates, and eligibility may vary. Please contact a Mortgage Lab adviser for personalised advice.

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