Usable Equity Calculator
Find out how much usable equity you have in your home and discover how it could help you build your property portfolio.
Just a heads-up
This calculation is based on equity only. This isn’t a bank pre-approval or a guarantee you can borrow this amount. Your ability to borrow and unlock this equity will also depend on your income and expenses. You’ll need to complete a full mortgage application so the bank can confirm how much they’re willing to lend based on your full financial position.
Ready to take the next step?
Your first investment property, and your path to $1,000,000, could be closer than you think. Book a free 15-minute Clarity Call and get a straight answer on whether you can use your equity to get started. No pressure, no jargon, no obligation, just clarity you can act on today.
Free and no obligation. If it's not the right fit, we'll tell you straight and point you to what is.
What is home equity?
Home equity is the difference between what your property is worth and what you still owe on your mortgage. As your loan shrinks and property values grow, your equity builds. That equity grows and can become the launchpad for your next investment.
Simple example:
- Property value: $800,000
- Mortgage owing: $500,000
- Equity: $300,000
Usable equity vs. total equity
Not all your equity is available to use. Lenders usually let you access up to 80% of your property's value, minus what you still owe.
Here's how that works:
- Property value: $800,000
- 80% of value: $640,000
- Mortgage owing: $500,000
- Usable equity: $140,000
This $140,000 of usable equity can be used as a deposit for a new build investment property worth $700,000.
Why equity matters for investors
Equity lets you grow your portfolio without a cash deposit sitting in the bank. Many Kiwis use the equity in their home to buy their first, or next, investment property. It's one of the most common ways to build long-term wealth through property.
Your first investment property, and your path to $1,000,000, is closer than you think.
Book a free 15-minute Clarity Call and get a straight answer on whether property investment is right for you. No pressure, no jargon, no obligation, just clarity you can act on today.
Free and no obligation. If it's not the right fit, we'll tell you straight and point you to what is.
Disclaimer
The information in this guide and calculator is provided for general informational and educational purposes only. It does not constitute financial, mortgage, investment, tax, or legal advice, and should not be relied upon as such.