Equity is the part of a property you own outright: its value minus what you owe on it. It's what a second mortgage, equity release or private loan is often secured against.

LVR is the loan-to-value ratio: the total loan balance divided by the property value, shown as a percentage. Lenders use it to judge how much cushion the security gives them.

Is my usable equity the same as my total equity?

No. Lenders leave a buffer, and each lender and loan type has its own LVR limit. A broker can tell you how much of your equity could realistically be accessed.

Equity and LVR Calculator

Estimated property value ($)

Total owing on the property ($)

Target LVR (%), as discussed with a broker

Enter your details

Your equity and LVR appear here.

Illustrative only. Lenders set their own LVR limits and value property independently.

How equity and LVR work

Equity is value minus debt. LVR is debt as a share of value. If a property is worth $900,000 and you owe $400,000, your equity is $500,000 and your LVR is about 44%. Setting a target LVR shows how much total borrowing that value could support, and the difference from what you already owe is the headroom.

What the headroom means in practice

Headroom is a starting point for a conversation, not an approval. Different lenders and loan types accept different LVRs, and the valuation, your purpose for borrowing and your exit strategy all matter. Private and second mortgage lenders look at the same numbers, often with more flexibility on the rest of your situation.

Want to know what could be possible on your property? Apply now and a broker will call you, or read about home equity loans and private mortgages.

Equity and LVR calculator

How equity and LVR work

What the headroom means in practice

Let's find your solution