Property equity calculator
Estimate how much a lender could advance against your property for a business 1st or 2nd mortgage.
The short answer
Usable equity is your property's value multiplied by the lender's maximum loan-to-value ratio (LVR), minus what you already owe on it. For example, a $900,000 property at a 70% LVR with $400,000 owing has about $230,000 of usable equity that could fund a business 2nd mortgage.
How lenders look at property equity
A lender won't lend the full gap between value and debt. They keep a buffer, set by the loan-to-value ratio, so the loan stays safe if values move. Location, property type, condition, and whether the loan sits in first or second place all affect that buffer.
With a second mortgage, your bank's first mortgage stays exactly as it is and the private lender lends against the equity above it. With a fast first mortgage, the new lender takes first place, often refinancing the bank out entirely. Compare the two in our first vs second mortgage guide.
What the result doesn't include
This is an estimate only. Lenders also consider the purpose of the loan, how and when it will be repaid, and costs such as valuation and legal fees. Talk to us and we'll tell you what's realistic for your property.
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Frequently asked questions
What is usable equity?
Usable equity is the amount a lender may let you borrow against a property: the property value multiplied by the lender's maximum loan-to-value ratio (LVR), minus everything already owing on it. It's usually less than the full difference between value and debt.
What LVR do private lenders use?
It depends on the lender, the property type and location, and whether the loan is a 1st or 2nd mortgage. Residential property in main centres usually supports a higher LVR than rural, commercial or specialised property. Try a few settings to see the range.
Can I use my home to fund my business?
Yes. A 1st or 2nd mortgage over your home, an investment property or a commercial building can fund business purposes. A second mortgage leaves your existing bank loan untouched. LoansOne arranges 1st and 2nd mortgages for business from $20,000 to $500,000.
Do I need financial records for a property-backed loan?
For LoansOne's fast 1st and 2nd mortgages, no cash flow or financial records are needed and bad credit is OK. The lender focuses mainly on the property and your plan to repay.
Let's get your business funded
Apply in about 30 seconds. An expert reviews every application and you could be funded as soon as the next day.