Useable Equity Calculator
Your home is more than just a roof over your head; it’s also an untapped financial asset. Over time, it’s been quietly building value, and our usable equity calculator is here to help you discover what that’s worth. Use this tool to quickly see how much of your home’s value you can actually use to fund your next financial move.
From Your Home to Your Portfolio: The Harmony Group Difference
Many people stop after they calculate the equity in the property. But at The Harmony Group, that’s where we begin. We start creating a plan to help you leverage your usable equity to build a thriving property portfolio.
Our equity calculator is a great starting point, but our team of experts is here to show you exactly how to use that number to your advantage. When you choose to seek our expert guidance, you can count on us to work closely with you to create a tailored strategy that uses the equity in your home to fund investments. For example, we can guide you in using that equity for a down payment on a rental property.
Why Use Our Home Equity Calculator in Australia?
Using our property equity calculator is a smart move for any homeowner. Seeing a definite number will help you discover new possible wealth-creation strategies.
- Equity vs. Usable Equity: Here’s a quick way to think about it. Your total equity is simply the difference between your home’s current market value and what you still owe on your mortgage. Usable equity, however, is the amount a lender is actually willing to let you borrow. Our calculator helps you get a reliable estimate of this usable amount to plan more confidently.
- Get a Fast Financial Snapshot: Instead of guessing, you can get a clear picture of your potential borrowing power in just a few clicks. Feel free to use our home loan equity calculator online as a great starting point.
- Plan Your Next Move: Whether you’re planning to buy your next investment property, renovate your current property, or consolidate your multiple high-interest debts, knowing your usable equity is the first step in creating a solid plan.
How to Utilise Our Equity Calculator
It’s easier than you might think to find out how much equity you have. All you have to do is enter some important information about your existing property into our equity calculator:
- Your Home’s Current Value: Provide a reasonable estimate of the price at which your house would sell right now.
- Your Remaining Loan Amount: Simply put in the outstanding balance on your home loan.
That’s it! The calculator will then show you your estimated usable equity, giving you the information you need to start planning your next financial move.
Connect with The Harmony Group Today
Strategise your property journey with our expert team and discuss your goals beyond your usable equity results. We’re excited to be with you on this journey.
FAQs About Usable Equity
What is usable equity?
The amount of your home’s value that a lender will allow you to borrow against is known as usable equity. It’s not the total amount of equity you have; it’s typically a percentage of it, usually around 80% of your property’s value, minus what you still owe on your home loan. Use our usable equity calculator above to get a better estimate.
How do you calculate usable equity?
The formula is pretty simple: you take your property’s current value, multiply it by the lender’s loan-to-value ratio (LVR), and then subtract your outstanding home loan balance. Our usable equity calculator does all this for you automatically!
What's the difference between total equity and usable equity?
Your total equity is just your property’s current value minus your outstanding loan balance. It’s essentially the current full amount of value of your home. Usable equity, on the other hand, is the amount you can actually access and borrow. Lenders keep a buffer, so the usable amount is always less than the total.
What are some common uses for usable equity?
Most people use it as a deposit for an investment property. It can also be used for major renovations that increase your home’s value, to pay for big expenses, or to consolidate higher-interest debts.
How does a lender determine my home's value?
To determine property value, lenders employ a tried-and-true property valuation method. It can be a full valuation, which involves a professional physically inspecting your property or a basic desktop appraisal based on recent sales in your area.
Is using my home's equity risky?
Any borrowing comes with a level of risk. If you use your equity to get a new loan, you practically increase your overall debt. It’s important to have a clear plan for how you’ll manage the repayments. That’s why talking to a professional is so important.
Can I use this calculator for a property I already own as an investment?
Yes, you can use our property equity calculator for any type of property you own, including your house and investments. It’s a fantastic way to assess your real estate portfolio’s growth potential.
Why should I talk to a professional about my equity?
While our property equity calculator gives you a great starting point for how to calculate usable equity, a professional can give you tailored and targeted advice. They will speed up the lending process, assist you in understanding your options, and make sure your plans complement your long-term financial objectives.
