The Usable Equity Calculator
Sitting on lazy equity? Let’s put it to work.
If you own property in New Zealand, you might be sitting on a goldmine of untapped funds. But figuring out exactly how much the bank will actually let you use can be a headache of LVR limits and cross-collateralization rules.
Our Usable Equity Calculator takes your current home (or your entire investment portfolio) and calculates your exact "War Chest"—the maximum deposit you can unlock to buy your next home, secure an investment property, or fund that massive renovation.
What is Usable Equity? Usable equity is the portion of your property's value that banks will let you borrow against. In New Zealand, banks typically let you borrow up to 80% of an owner-occupied property's value, and 70% of an investment property's value. Your usable equity is that maximum borrowing limit, minus what you currently owe on your mortgage.
Drop your numbers in below and let's see what you can afford! 👇
Curious what it's really worth?
We can't tell you exactly what your property is worth, but we can send you an automated online valuation report at no cost to you!
Whoa, great Usable Equity! 🚀
These numbers are looking great. I suggest a no-obligation chat with an adviser about how we can actually put this equity to work for you, sound good?
Get your results 📩
Pop your details below and we will email you a beautiful breakdown of your scenario instantly.
Your Existing Portfolio
Let's map out what you own, what you owe, and find your hidden equity.
Note: This only considers your deposit limits. You still need the income to service the new loan. Try our Borrowing Power Calculator to check your limits.
Usable equity is calculated by looking at your net LVR with each specific lender.
How to use your home equity in New Zealand
Finding out you have $150,000 in usable equity is a great feeling, but what can you actually do with it? Depending on the lender, you can top up your mortgage to:
Buy your next property: Use the equity as a 100% cash-free deposit for an investment property or a new family home.
Renovate: Upgrade your kitchen, add an extension, or build a minor dwelling to increase your yield.
Lifestyle upgrades: Top up to buy a new car, fund a wedding, or take that long-overdue overseas holiday.
Frequently Asked Questions (FAQs)
Q: Does having usable equity mean I am guaranteed a new loan?
A: No. Usable equity only solves the "deposit" half of the equation. To actually get the loan approved, you still need to prove to the bank that you have enough income to afford the higher mortgage repayments. To check your income limits, try our Borrowing Power Calculator.
Q: Why do investment properties and owner-occupied properties have different LVR limits?
A: The Reserve Bank of New Zealand (RBNZ) sets different Loan-to-Value Ratio (LVR) speed limits to keep the housing market stable. Generally, owner-occupied homes are capped at 80% LVR, while existing investment properties are capped at 70% LVR. However, new builds (even investments) can often go up to 90% LVR! Check with your adviser on what the current settings are.
Q: Should I keep all my properties with one bank?
A: Not always! This is called cross-collateralization and it can have an impact on your future borrowing potential. While it's easier to look at on one banking app, spreading your properties across different lenders can protect your portfolio and sometimes help you borrow more, as different banks have different rules for calculating your income and equity. Our calculator above lets you break your equity down by bank to see where your hidden wealth is sitting.
Q: What if I don't know exactly what my house is worth?
A: Online estimates like council RVs can be wildly inaccurate. If you're unsure, just guess conservatively in the calculator, and click the "Send me an estimate" link inside the tool. Our team will happily run a free, obligation-free online valuation for you!