Usable Equity & Next Purchase Calculator
Enter your home's value and what you owe. We'll work out your usable equity and how far it could go — as the deposit on an investment property, or as a renovation budget.
Current LVR 50.5%
Legals, inspections, loan fees
Usable equity (80% LVR)
$280,000
Max purchase price
$1,086,000
New loan (80%)
$868,800
Stamp duty (est.)
$59,730
Total debt after
$1,628,800
Estimate only. Depends on a lender valuation, your income passing serviceability, and the lender's policy. Stamp duty is indicative and excludes surcharges and concessions.
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The 80% rule
Lenders usually let you borrow up to 80% of your home's value without LMI. Take that figure, subtract what you owe, and you have your usable equity. A $950,000 home with $480,000 owing has $280,000 usable.
How the purchase budget is worked out
To buy an investment property at 80% LVR you need a 20% deposit, plus stamp duty and costs like legals and inspections. We find the highest price where all of that fits inside your usable equity. The bank lends the other 80% against the new property. Stamp duty uses indicative standard rates for the state you choose.
Structure it the right way
Equity for an investment is best set up as a separate loan split, so the investment debt stays separate for tax. Keeping each loan secured against its own property where possible avoids tying both properties together. A broker can set this up for you and check your income supports the total debt.
Key terms explained
The main terms used in this calculator and its results.
- Equity
- The difference between your property's market value and the amount you still owe on your loan.
- Lenders Mortgage Insurance (LMI)
- A one-off premium that protects the lender (not you) if you default, typically required when borrowing more than 80% of the property value.
- Loan-to-Value Ratio (LVR)
- Your loan amount expressed as a percentage of the property's value. A lower LVR generally means better rates and no LMI.
- Serviceability
- A lender's assessment of your ability to comfortably afford loan repayments, based on your income, expenses and debts.
- Usable Equity
- The portion of your equity a lender will normally release — typically 80% of the property's value less your current loan balance.
Frequently asked questions
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