Property equity estimator

What usable equity means for a business loan

Equity is the gap between what a property is worth and what's owed on it. Usable equity is smaller: it's the part a lender is prepared to lend against once it applies its own maximum loan-to-value ratio. If a house is worth $950,000 and a lender will go to 70%, total lending of up to $665,000 could be supported. With $420,000 already owing, about $245,000 is potentially available for the business.

Speed is the other half of the story. When the property is a house in a main centre, the title is straightforward and the owners are the borrowers or guarantors, a desktop check of value can be enough and property-secured amounts from $20k to $250k are possible the same day. Commercial and rural property, larger amounts, or titles held in a trust usually need more time — often a registered valuation — and the larger deals up to $5m are possible within 24–48 hours when everything lines up.

First mortgage, second mortgage or caveat?

If there's no mortgage, the business loan can sit in first position, which tends to open up the most borrowing. If your bank already holds a first mortgage, the new lending usually sits behind it as a second mortgage, or for short terms as a caveat loan. Second-position lending typically comes with a lower maximum LVR, because the second lender is paid after the first.

Getting an accurate number quickly

• Use a realistic value — recent comparable sales, not the highest number you've heard.
• Include every loan secured on the title, including any existing caveats.
• Have the latest mortgage statement ready; lenders need the exact balance.
• Tell us who's on the title. A company, trust or partner on the title changes the documents needed.

Then apply in about 60 seconds. There's no credit check to enquire, and a real person will tell you what your property could realistically support — and how fast. For the full timeline, try the Funding Clock.

Frequently asked questions

What is LVR?

Loan-to-value ratio: total lending secured on a property divided by its value. A $1,000,000 property with $600,000 of mortgages is at a 60% LVR. Lenders set a maximum LVR for each type of property and loan.

Which LVR will a lender use for my property?

It depends on the property type, location, condition, the loan's position (first or second mortgage) and the lender. Houses in main centres usually support a higher LVR than specialised commercial or rural property. The estimator shows a range so you can see the effect.

Does the value I enter decide the loan?

No. Lenders rely on their own view of value — a desktop assessment, a recent sale price or a registered valuation. If your estimate is optimistic, usable equity will be lower than the tool shows.

Can I use a property owned by my family trust?

Often, yes, but the trustees all need to agree and sign, which can add time. Mention the trust on the application so the right documents are prepared from the start.