Equity

The current property value minus the debt secured against it.

01 / Plain English

What Equity means

Equity is the part of the property value that is not represented by the outstanding loan balance.

02 / Worked example

Property value − loan balance

Property value $800,000 Loan balance $500,000 Equity $300,000

$800,000 − $500,000 = $300,000 equity

03 / Decision context

Equity is part of your net position and may support a future loan, but having equity does not automatically mean a lender will let you access it.

Take the next step

Start with: “How much equity is in my portfolio, and how much of it could actually be usable?”

Primary & official where available

General educational information only. It does not account for your objectives, financial situation, legal position or tax circumstances.