Home Value Calculator

Home equity is the difference between your property's current market value and how much you owe on your mortgage. To understand the basics in more detail, see what is home equity.

Subtract your outstanding loan balance from the current value of your home. For example, if your home is worth $850,000 and your loan balance is $300,000, your equity is $550,000.

Usable equity is the portion of your equity that lenders may allow you to borrow against, this is typically up to 80% of your property's value (minus what you owe).

You can access equity once you have built up a sufficient buffer between your home's value and your outstanding loan balance. Typically, lenders let you borrow up to 80% of your home's current market value before LMI applies.

There are two main ways: Paying down your home loan faster by making extra or more frequent repayments. Increasing your property's value through renovations or market growth.

Yes, strategic improvements like a kitchen or bathroom upgrade can boost your home's value and increase equity. Learn more in how to access equity to renovate your home and tips for upgrading or renovating your home.

Home equity can be used to fund renovations, purchase another property, consolidate debt, or cover major expenses.

Common options include: Home equity loan (second mortgage): Borrow a lump sum with fixed repayments. Home equity line of credit (HELOC): Borrow as you need up to an agreed limit. Cash-out refinance: Refinance your existing mortgage for a higher amount and access the difference in cash.

Yes. Many homeowners use equity to purchase a second home or investment property. Lenders will consider your Loan-to-Value Ratio (LVR), credit history, and income. For a full guide, see using equity to buy a second home or investment property.

Accessing your equity isn't free — there are several potential costs to be aware of, including: Break costs: Fees that may apply if you refinance or change your loan during a fixed rate period. Valuation fees: Lenders may require a professional property valuation before approving equity release. Legal fees: Costs related to refinancing or setting up new loan documents. Lenders Mortgage Insurance (LMI): If your borrowing pushes your Loan-to-Value Ratio (LVR) above 80%, you may need to pay LMI. Higher interest rates: Depending on your LVR and loan type, equity loans or refinancing may attract a higher rate. Learn more about the costs associated with accessing home equity.

Not always. While equity can be a powerful financial tool, you need to assess your ability to service new debt and how it fits into your long-term goals. Speaking with a broker can help you make an informed decision.