Estimated equity is the property's estimated value less the debt secured against it. The amount a lender may allow you to access also depends on its valuation, lending limits, costs, your income and other requirements.
Start with the basic calculation
As an illustration only, a home estimated at $900,000 with a $500,000 loan has estimated equity of $400,000. That does not mean $400,000 is available to withdraw. The value is uncertain until appropriately assessed and the debt may have additional payout costs.
Usable equity is a separate lending question
A lender may apply a maximum loan-to-value ratio and assess whether you can service the proposed debt. The acceptable property value and other policy requirements also matter. We do not use a universal percentage on this page because it is not an approval rule for every applicant.
Borrowing against equity still creates debt
Accessing equity generally involves increasing or restructuring borrowing. Consider the repayment, fees and impact on your home as security. It is not free money simply because the property value has increased.
Match the structure to the purpose
An upgrade, renovation, business expense and investment purchase can have different implications. The use of borrowed funds may matter for tax. Speak to your accountant before mixing purposes or moving funds through existing loans.
Bring the next decision into view
Using equity now can affect a later purchase, refinance or business facility. Discuss the longer-term plan alongside the immediate need, and keep a realistic buffer.
Sources & further reading
Prepared 4 October 2026. General information; check current rules for your circumstances.