Free tool
Property equity estimator for business loans
Enter what the property is worth and what's owed on it. See, in dollars, how much equity could sit behind a fast property-secured business loan.
How usable equity is worked out
Equity is the part of a property you own outright: its value minus what's owed. But a lender won't lend against every last dollar of it. Each lender sets a maximum loan-to-value ratio (LVR), and the gap between that maximum and 100% is a buffer that protects everyone if values move.
So the estimator multiplies the property value by the LVR you choose, then subtracts the existing debt. What's left is the room for a new business loan — either by refinancing everything into one first mortgage, or by adding a second mortgage or caveat behind the current loan.
| Illustrative example | Amount |
|---|---|
| Property value | $900,000 |
| Maximum lending at a 70% LVR | $630,000 |
| Less existing home loan | $350,000 |
| Usable equity for a business loan | $280,000 |
Why equity makes funding faster
With property security, a lender's main questions are about the property and the plan to repay, so decisions can come quickly. Property-secured business loans run from $20,000 to $5,000,000; $20k to $250k is possible on the same day, and up to $5m is possible within 24–48 hours when the title and valuation are straightforward. Read more about caveat loans, second mortgages and how fast valuations work.
Ready to put a number on it?
If the estimate shows room, the next step is a quick conversation. There's no credit check to enquire, your details don't get handed round to a queue of lenders, and a real person works through the property with you. Please give the true value and the exact balances owing when you apply — it keeps your file on the fast track.
Equity and LVR questions
What is LVR?
Loan-to-value ratio: the total lending secured against a property divided by the property's value. If a property is worth $1m and the loans against it total $600k, the LVR is 60%. Lenders set a maximum LVR for each type of loan and security.
Which LVR should I choose in the estimator?
Try a few. The maximum a lender will go to depends on the property type, location, whether the loan is a first or second mortgage, and the overall deal. Running the numbers at a lower and a higher setting shows you a sensible range rather than a single figure.
Is the property value I enter the one a lender will use?
Not necessarily. A lender relies on its own valuation, which may be a quick desktop assessment or a full inspection. Use a realistic figure — recent comparable sales are a better guide than the highest online estimate.
Can I use equity in my home for a business loan?
Yes, residential property can secure a business-purpose loan, either as a first mortgage, a second mortgage behind your existing home loan, or a caveat for short terms. The funds must be used for business purposes.
Turn equity into working capital, fast
A 60-second application, no credit check to enquire, and a real person who calls you back with the quickest sensible option.
No credit check to enquire
No spray-and-pray
A real person, quickly