Explore your indicative property position

Property Equity Estimator

Use this calculator to estimate the difference between a property’s value and the lending secured against it.

The calculator also shows an indicative usable-equity figure based on the loan-to-value ratio you select.

Usable equity is not the same as borrowing capacity. A lender must still assess your income, expenses, existing debts, credit history, proposed loan purpose, property and other requirements.

Estimated property value

Enter an estimate only. This is not a formal lender valuation.

Current home-loan balance

Other lending secured against the property

Include another secured loan or facility where applicable.

Indicative loan-to-value ratio

The selected percentage is illustrative and is not a lender-approved limit.

What are you considering?

INDICATIVE PROPERTY POSITION

Your estimated property equity

Indicative usable equity $220,000.00

Based on an 80% selected LVR.

Estimated property value $900,000.00

Total secured lending $500,000.00

Estimated gross equity $400,000.00

Current estimated LVR 55.56%

Indicative lending at 80% LVR $720,000.00

Equity remaining above selected limit $180,000.00

How these figures were calculated

Gross equity

$900,000 - $500,000 = $400,000

Indicative lending limit

$900,000 x 80% = $720,000

Indicative usable equity

$720,000 - $500,000 = $220,000

Current estimated LVR

$500,000 / $900,000 x 100 = 55.56%

Equity is not borrowing capacity

This result does not confirm how much you can borrow. Additional lending remains subject to income, expenses, liabilities, credit assessment, loan purpose, property valuation, lender policy and individual circumstances.

Calculation assumptions

The property value entered is treated as an estimate only.
Total secured lending equals the current home-loan balance plus other entered secured lending.
Gross equity equals estimated property value less total secured lending.
Indicative usable equity is limited to zero where secured lending exceeds the selected lending limit.
Fees, lender's mortgage insurance, interest, transaction costs and future value changes are excluded.

This calculator provides estimates only and does not constitute a valuation, credit assessment, lending offer, financial advice, legal advice, taxation advice or property-investment advice. A lender may use a different property value, loan-to-value ratio or assessment method. Property values, available equity, borrowing capacity and loan approval are not guaranteed.

Want to discuss your property equity?

LNL Finance can review your property and mortgage position and explain the information required for a personalised lending assessment.

Request an Equity Discussion

What Is Property Equity?

Property equity is generally the difference between a property’s current value and the total lending secured against it.

For example, if a property is worth an estimated $900,000 and the secured lending totals $500,000, the estimated gross equity is $400,000.

Gross equity does not mean the full $400,000 is available to borrow.

What Is Usable Equity?

Usable equity is an indicative amount calculated after applying a selected lending limit to the property value and deducting current secured lending.

For example:

Estimated property value: $900,000
Selected LVR: 80%
Indicative lending limit: $720,000
Current secured lending: $500,000
Indicative usable equity: $220,000

A lender may apply a different valuation, permitted LVR or assessment method.

What Is Loan-to-Value Ratio?

Loan-to-value ratio, commonly called LVR, compares secured lending with the lender-assessed property value.

An entered property value of $900,000 with $500,000 of secured lending produces an indicative LVR of approximately 55.56%.

A lender may use its own valuation rather than the figure entered in this calculator.

What Could Available Equity Be Used For?

Subject to lender approval and individual circumstances, equity-related lending may potentially be considered for:

The availability of equity does not establish whether additional borrowing is affordable or suitable.

Costs and Risks to Consider

Additional lending can:

Increase mortgage repayments
Increase total interest
Extend the period spent in debt
Reduce future borrowing capacity
Place more debt against the property
Create lender’s mortgage insurance costs at higher LVRs
Affect future refinancing or property-sale options

Tax, legal, financial-planning or property advice may be appropriate depending on the intended use.

Frequently Asked Questions

No. Gross equity is the difference between the entered property value and total secured lending. Usable equity applies the selected indicative lending ratio before deducting secured lending.
No. Borrowing capacity depends on income, expenses, debts, dependants, credit history, loan purpose, property, lender policy and other circumstances.
No. The 80% setting is an illustrative benchmark. Some lenders may permit a higher or lower LVR depending on the application, property and lender requirements.
Lending above 80% may involve lender’s mortgage insurance, additional fees, fewer lender options or stricter criteria. Requirements vary.
No. It is a figure supplied by the visitor for estimation. A lender may require its own valuation and may assess a different value.
Potentially, subject to lender approval, borrowing capacity, the proposed structure and individual circumstances.
Generally, additional borrowing increases the debt secured against the property. This can increase repayments and total interest.
No. It does not include lender fees, lender’s mortgage insurance, government charges, legal costs, valuation fees or other transaction costs.

Property Equity Estimator