01 Borrowing & leverage Reviewed 30 August 2026
Usable property equity
Usable equity
The portion of property equity a lender may allow you to borrow against.
What Usable equity means
A common estimate is 80% of the lender’s property value minus the current loan balance. It is an estimate of accessible equity, not an approved loan amount.
02 / Worked example
How it is calculated
(Property value × 80%) − loan balance
80% of value $640,000 Loan balance $500,000 Estimate $140,000
($800,000 × 80%) − $500,000 = $140,000 estimated usable equity
Why it matters
Usable equity may help fund a deposit or costs for another purchase, but drawing it increases debt and repayments.
Take the next step
Ask Heyward A definition cannot see your position. Heyward can.
Start with: “Estimate my usable equity and show which assumptions could reduce it.”
04
Sources
Primary & official where available- CommBank Calculate equity in your home
- Westpac Using equity to buy an investment property
General educational information only. It does not account for your objectives, financial situation, legal position or tax circumstances.