Refinance Calculator AU
Table of contents
7 sections
How to estimate usable equity for a home loan refinance
What is the difference between equity and usable equity?
Total equity is the property value minus the outstanding debt secured against it. For a $900,000 home and a $500,000 loan, total equity is $400,000. An indicative usable equity calculation leaves room below a chosen lending limit. At an illustrative 80% LVR, the total-loan ceiling is $720,000, leaving $220,000 above the existing $500,000 balance before costs.
The 80% input is a modelling choice, not a universal rule or approval promise. A lender may accept a different limit or value the property differently. The usable equity calculator lets you test that relationship. Include all relevant secured borrowing; if several loans or properties are linked, ask the lender to explain how it allocates the security and calculates the ratio.
How do I calculate LVR if I want to borrow more?
Divide the proposed total home loan by the property value, then multiply by 100. In the example, the existing $500,000 balance is 55.56% of $900,000. Adding $75,000 makes the proposed balance $575,000 and the LVR approximately 63.89%, before any financed costs. The amount released is only part of the new loan; the existing debt still has to be included.
Use the refinance LVR calculator to enter the property estimate, current balance and any extra borrowing. Record costs added to the loan as part of the proposed debt. Do not confuse LVR with the interest rate: LVR describes the relationship between borrowing and security, not the price charged for the loan.
What happens if the lender values my property lower?
At a $900,000 valuation, an 80% illustrative ceiling leaves $220,000 above a $500,000 loan. At $850,000, that room falls to $180,000. At $700,000, it falls to $60,000. The same outstanding debt produces a different equity result when the valuation changes. A hoped-for sale price or online estimate is not a substitute for the valuation the lender accepts.
Test a range of plausible values before committing to a project funded by extra borrowing. In the $900,000 example, financing $5,000 of costs would reduce the amount left below the same $720,000 ceiling from $220,000 to $215,000. This still does not establish how much cash the lender will release or how it will structure the borrowing.
Can I afford the repayments after accessing equity?
Put the full proposed balance in the home loan refinance calculator, together with a quoted rate and remaining term. Compare the new repayment with your household budget, not just with the current repayment. A lower rate does not guarantee a lower payment when the amount borrowed increases. The refinance savings guide explains how to keep those effects separate.
The lender assesses income, living expenses, existing commitments and other lending requirements. The equity and repayment calculators do not perform that assessment. Check a less favourable rate scenario and allow for the practical cost of the purpose you are funding. For investment borrowing, use the investment-property guide and obtain advice on tax and loan-purpose records where relevant.
What does an equity estimate tell me—and what does it leave out?
| Property value | Total equity | 80% loan ceiling | Room above existing debt, before costs |
|---|---|---|---|
| $900,000 | $400,000 | $720,000 | $220,000 |
| $850,000 | $350,000 | $680,000 | $180,000 |
| $700,000 | $200,000 | $560,000 | $60,000 |
Is usable equity money I already own in a bank account?
No. Equity is a value relationship. Releasing it through borrowing increases the debt secured against your property and creates a repayment obligation. A calculator output is not a withdrawal facility, a loan offer or a guarantee that the funds can be used for a particular purpose.
Can I refinance without releasing equity?
Yes. You can compare replacing the current loan without a top-up. Keep the proposed balance equal to the amount being refinanced, allowing separately for any financed costs. A purpose such as reducing ongoing costs or changing features does not require you to borrow up to an illustrative maximum. Use the offer-comparison tool for equivalent loan scenarios.
Does LVR below 80% guarantee approval or the best rate?
No. A ratio is not a credit assessment or a product recommendation. Property acceptability, income, other debts and lender rules still matter. Ask the lender which LVR calculation it uses and whether insurance or other charges apply. Our selected-limit estimate does not choose the most suitable limit for you.
What if the usable equity calculation is zero or negative?
At the selected limit, the model has no positive room for additional debt. For example, a $700,000 loan against an $800,000 property exceeds an 80% ceiling of $640,000 by $60,000. That does not mean all refinancing is impossible: it means that particular limit does not support a top-up under those inputs. Discuss the actual options with a lender rather than assuming approval at another limit.
What should I take to a lender or broker?
Bring current secured-loan balances, property details, a clear purpose for additional funds and a budget for the proposed repayments. Ask for the accepted valuation, full proposed loan amount, quoted costs and any restrictions on releasing funds. The home loan refinance checklist helps organise those questions, and the guide archive connects the equity calculation with the wider refinance decision.
Sources and calculator limits
Sources checked on 29 October 2026. Examples use fixed inputs; actual fees, rates, valuations and approval rules can differ. Read the calculator assumptions and limitations. For questions about the site, contact us. About Sana Hosseni and the calculators.
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Where will your next move take you?
Choose the calculator or guide that helps you understand your next refinance decision. Browse all calculators or explore the guides.
Calculators and practical guides
Compare your current loan with a new loan, including repayments, fees and payoff time.
Work out your loan-to-value ratio, equity and distance from 80% LVR.
Estimate your usable equity and the loan amount at your chosen LVR.
Compare two offers against your current loan, including fees and cashback.
Add up switching costs and estimate how long your savings take to cover them.
