Equity Release › What is usable equity and how is it calculated?

What is usable equity and how is it calculated?

Usable equity is the portion of your equity a lender will actually let you borrow against. A common guide is around 80 percent of your property value, minus the balance you still owe on your loan.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

There is a difference between total equity and usable equity. Total equity is value minus debt. Usable equity is smaller, because lenders keep a buffer, commonly lending only to around 80 percent of value without insurance. Knowing the usable figure stops you planning around money you cannot actually draw.

The key points

Usable equity is what a lender will lend against.
A common guide is around 80 percent of value minus your loan.
It is smaller than your total equity.
Lenders keep a buffer for safety.

Free, no obligation

See how much equity you could access

Answer a few quick questions and we can estimate your usable equity across a panel of more than 70 lenders. No cost, no obligation.

Check Your Options

A few quick questions, no obligation.

What is your goal?

Buy a home or investment property First home, next home, or adding to your portfolio Build a house or develop land New build, renovation, duplex, or subdivision project Lower my current repayments Better rate, release equity, or restructure existing debt Finance an established commercial property Business premises or commercial investment asset

Tell us a bit more about the plan

How do you earn your income?

Standard salary or wage Full-time, part-time, or casual employment (PAYG) Self-employed or business owner Sole trader, company director, or contractor

How is your credit score?

This helps us match you to the right lender from the start.

Healthy No issues that I am aware of A few small marks A couple of late payments, now caught up Not sure, or it is complicated We work with specialist lenders for these situations

Last step. Where should we send your options?

Your information is private and we will never share it.

First Name

Last Name

Email Address

Australian Mobile Number

By submitting, you agree to be contacted by one of our team of licensed mortgage brokers. No obligation. No spam.

You're all set.

We've received your details. One of our friendly brokers will reach out within 1 business day to help guide you through your options.

More equity release questions

Back to the full Equity Release guide

Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.