Property and equity
Usable equity
Equity and usable equity are different numbers, and the gap surprises people. Most lenders will go to 80% of the value before mortgage insurance, so that is the line this works to.
Your numbers
900,000
450,000
Above 80% mortgage insurance normally applies.
Result
Usable equity
$270,000
- Total equity
- $450,000
- Not usable at this ceiling
- $180,000
- Current loan to value ratio
- 50.0%
- Deposit this could form at 20%
- $270,000
Roughly $1,350,000 of purchase price before costs, if a lender accepts it as the deposit.
- Usable$270,000
- Locked in the property$180,000
What this does not tell you · Access to equity still depends on serviceability. Having usable equity and being approved to draw it are separate questions, and the second is the one that fails.
Put this on your own site
This calculator ships as part of a Finance OS build, on your brand and your booking link, so an enquiry that starts with a number ends in your calendar rather than on a bank’s website.