Property equity calculator for business loans
A quick read on how much your property could support before you talk to us.
A rough guide using typical maximum loan-to-value ratios for short-term private lending. Actual limits depend on the property, its location and the exit.
How lenders look at equity
On a property-secured business loan the first question is simple: how much is the property worth, and how much is already owing? The difference is your equity. A lender won't lend all of it — there has to be a buffer in case the property has to be sold — so it applies a maximum loan-to-value ratio. The usable equity is the gap between that maximum and your existing debt.
Illustrative example: a metro house worth $1,200,000 with a $500,000 mortgage. At a 75 per cent maximum the total lending against it could be $900,000, leaving about $400,000 of usable equity for a second mortgage or caveat loan, before costs. The same property type in a small regional town would support less.
What else decides the amount
- The exit. We size loans to what the sale, refinance or payment will actually repay.
- The existing lender. Arrears on the first mortgage reduce what we can do behind it.
- Every owner's consent. All registered owners need to sign.
Want to use more than one property? We can secure a loan across several. See fast secured business loans, or tell us about your properties and we'll work out the figure.
Equity questions
What is usable equity?
The part of a property's value a lender will lend against, after what's already owed. Lenders apply a maximum loan-to-value ratio (LVR) to the property value; usable equity is that capped figure minus existing debt.
Why does the property type change the result?
Lenders lend a higher share of value against a standard house in a capital city than against vacant land, a specialised commercial building or a property in a small regional town, because some properties take longer to sell.
Is my estimate of value good enough?
Yes. We never order valuations — we assess the property ourselves, so there is no valuer to book and no valuation fee. A recent agent's appraisal or nearby sales help us move faster, but your honest estimate is the starting point.
Need the money this week?
Tell us the amount, the property and how it gets repaid. A real person reads it and you get a straight answer today — with no credit check to enquire.
Start your 60-second enquiry or call 1300 852 150