Your property and loan
The value is an estimate until a lender's valuer reports; a bank valuation often comes in below the figure an agent or a portal suggests. The rate pre-filled is an example for the arithmetic, not a rate on offer.
What the usable equity could be put towards
| Purpose | Amount used | What that supports | Added repayment |
|---|
The investment purchase row treats the equity as the deposit plus purchase costs (about 25 per cent of the price), with the rest borrowed against the new property. Whether a lender will fund it depends on serviceability for the combined borrowing, which the borrowing capacity calculator shows; the investment property calculator shows the weekly holding cost.
If you are estimating the value from the purchase
The growth rate is yours to set; this page makes no prediction. Suburb median changes, recent sales in the street, or a free agent appraisal are better guides than a single percentage, and a lender's valuation decides.
How lenders treat equity
The 80 per cent line. Borrowing up to 80 per cent of the valuation needs no lenders mortgage insurance. Between 80 and 90 per cent most lenders will lend, with LMI on the new loan or a higher rate; above 90 per cent, equity release becomes rare. The deposit and LMI calculator shows the indicative cost at each band.
Purpose matters. A lender will ask what the money is for. Renovation, a deposit on another property, or consolidating debts are routine; large unspecified cash-out is assessed more closely and some lenders cap it.
Serviceability is the real limit. Equity tells you how much security there is. Whether you can borrow against it depends on income, expenses and the assessment rate, exactly as for the original loan. Many owners have more equity than they can service, and some the reverse.
Structure. Taking the equity as a separate split, rather than topping up the home loan, keeps the purpose of each loan clear. For an investment deposit that matters at tax time; for a renovation it keeps the home loan's offset and repayments undisturbed.
Understanding the usable figure, and what limits it, is the useful first step; the valuation and the serviceability assessment do the rest.