What is Equity (Home Equity)?

Quick definition

Home equity is the difference between your property value and the amount you still owe on your loan.

Home loansInvestingGeneral

Overview

Equity generally increases as your loan balance falls and/or property value rises.

Usable equity depends on lender policy, valuation, and LVR limits at the time of application.

Formula

Equity = Property Value − Loan Balance

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