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Free Calculator · Australian Property Investors

Usable Equity Calculator

See how much equity you can actually borrow against to fund your next deposit. Lenders only let you access a portion, not your full equity. No signup, no credit card.

Reviewed by the Vestly team
Updated June 2026Methodology
$
$
Lender access limit

Usable equity

$320,000

Total equity
$500,000
Current LVR
44.4%
Lending value (80.0%)
$720,000
Indicative next-purchase power
$1,600,000

Next-purchase power assumes your usable equity covers a 20% deposit. Your bank's serviceability assessment decides the actual loan.

Track equity across every property

Vestly updates usable equity automatically as values rise and your loans amortise down.

How usable equity works

In short: usable equity is your property value times 80% (the standard lender limit), minus your current loan. It is the cash a bank will release to fund your next deposit.

Total equity is simply your property value minus your loan. But a lender will not let you borrow all of it - they cap your total borrowing at 80% of the value (or 90% if you pay Lenders Mortgage Insurance) and keep the rest as a buffer.

Usable equity = (Property value × 80%) − Current loan balance

On a $900,000 property with a $400,000 loan, the bank lends up to $720,000 (80%). Subtract the existing $400,000 loan and you have about $320,000 of usable equity - enough for the deposit and costs on your next purchase.

Equity gets the deposit, serviceability gets the loan

Usable equity tells you the deposit you can pull together. It does not guarantee the loan - the bank still runs a serviceability assessment on your income and existing commitments to decide how much you can actually borrow for the next property. Investors often plan around equity covering a 20% deposit plus buying costs, which is why your indicative next-purchase power is roughly five times your usable equity.

Common questions

What is usable equity?

Usable equity is the portion of your home equity a lender will actually let you borrow against, not your total equity. Most lenders cap your total borrowing at 80% of the property's value (90% if you pay LMI). Usable equity = (property value x 80%) minus your current loan balance. On a $900,000 property with a $400,000 loan, usable equity is about $320,000 at the 80% limit.

How do I calculate how much equity I can access?

Multiply your property current value by 0.80, then subtract your outstanding loan balance. The result is your usable equity at the standard no-LMI limit. To access up to 90% you can usually go higher, but the bank charges Lenders Mortgage Insurance on the amount above 80%.

How much can I borrow for my next property using equity?

As a rule of thumb, usable equity acts as the deposit on your next purchase. Investors often plan around equity covering a 20% deposit plus buying costs, so roughly five times your usable equity is an indicative purchase ceiling, subject to your income and the bank serviceability assessment. Equity gets you the deposit; serviceability decides the rest.

Is usable equity the same as my total equity?

No. Total equity is your property value minus your loan. Usable equity is smaller because lenders keep a buffer, only lending up to 80% (or 90% with LMI) of the value. The gap between the two is the bank safety margin.

Do I have to pay LMI to access equity above 80%?

Generally yes. Accessing equity that takes your loan-to-value ratio above 80% triggers Lenders Mortgage Insurance, just like a low-deposit purchase. Staying at or below 80% avoids LMI entirely, which is why most equity-release plans target the 80% line.

Related calculators

See your equity grow across your whole portfolio

Vestly shows usable equity per property and across your portfolio, updated automatically as values rise and your loans amortise down, so you always know your next deposit.

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