Savings .com.au

What is home equity?

Equity is the total value of your home that you actually own. On a home loan, it is the difference between the total value of the property and how much you owe your lender. As an example, if your home is worth $700,000 and you have $300,000 owing on your home loan, you could have $400,000 in equity.

Generally, equity builds over time. Your home is an asset and in a rising property market, can be worth considerably more than you paid for it. Any increase in the property’s value adds to the equity in your home without you having to do anything. You can also increase the equity in your home by making extra or more regular repayments on your home loan, or making use of an offset facility.

Knowing the equity you have in your home is useful. Psychologically, it can help you feel like you are making headway in building wealth. On a practical level, borrowers can use the equity in their home to finance another property, a renovation, or other major purchase. A lender will generally seek a property valuation to get a more accurate figure of the equity in your home.

How to use Savings.com.au’s Home Equity Calculator

Use our calculator to discover the equity you have in your home. Simply put in the balance owing on your current home loan and the value of your property. It will be more accurate if you have had a recent valuation. If not, enter the estimated value based on recent sales of similar properties in the area.

If you are looking to refinance your loan to access the equity in your home, select ‘Yes’ and enter the new interest rate and loan term you are considering. The calculator will do the rest.


Looking for a home loan?

Buying a home or looking to refinance? The table below features home loans
with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Online ExclusiveUp To $4K Cashback

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Variable
More details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Unlimited Redraws

ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Variable
More details
4.6 Star Customer Ratings
4.6 Star Customer Ratings

loans.com.au – Variable Home Loan (LVR < 90%)

    Fixed
    More details

    Macquarie Bank – Basic Home Loan Fixed (Principal and Interest) (LVR 70%-80%) 3 Years

      Variable
      More details

      ubank – Neat Variable Home Loan (Principal and Interest) (LVR ≤ 80%)

      • Home loan specialists available today
      Variable
      More details
      • $0 application fee
      • Fast turnaround times
      • Estimate your borrowing power in as little as 1 minute

      Macquarie Bank – Offset Package Home Loan (Principal and Interest) (LVR 60%-70%)

      • $0 application fee
      • Fast turnaround times
      • Estimate your borrowing power in as little as 1 minute
      Variable
      More details
      • Flexibility without the fees: Easily change your loan type, repayment frequency or top-up when you need, for free.
      • Unlock equity easily and get maximum borrowing power.
      • Set up your offsets (up to 10) to stash your cash to reduce the your interest payable
      • Drop your own rate: With AcceleRATES the more you pay down your loan, the more we'll lower your interest rate - automatically

      Athena – Straight Up Owner Occupied - Obliterate (LVR < 50%) (Principal and Interest)

      • Flexibility without the fees: Easily change your loan type, repayment frequency or top-up when you need, for free.
      • Unlock equity easily and get maximum borrowing power.
      • Set up your offsets (up to 10) to stash your cash to reduce the your interest payable
      • Drop your own rate: With AcceleRATES the more you pay down your loan, the more we'll lower your interest rate - automatically
      Fixed
      More details

      Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR < 70%)

        Variable
        More details

        Commonwealth Bank – Wealth Package Variable Home Loan (Principal and Interest) (LVR 70% - 80%)

          Variable
          More details

          NAB – Base Variable Home Loan (Principal and Interest) (New Customer)

            Fixed
            More details

            ANZ – Fixed Rate Home Loan (Principal and Interest) 5 Years (LVR < 80%)

              Variable
              More details

              Heritage Bank – Discount Variable Home Loan ($150k+) (LVR < 70%)

                Variable
                More details

                P&N Bank – & Basic Home Loan (LVR < 60%)

                  Fixed
                  More details

                  Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan Special (Principal and Interest) 2 Years

                    Fixed
                    More details

                    Commonwealth Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years

                      Fixed
                      More details

                      HSBC – Package Fixed Rate Home Loan (Principal and Interest) 4 Years (LVR < 80%)

                        Fixed
                        More details

                        IMB Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR ≤ 80%)

                          Fixed
                          More details

                          ING – Fixed Rate Home Loan 5 Years (LVR < 80%)

                            Fixed
                            More details

                            Newcastle Permanent – Fixed Rate Home Loan (Principal and Interest) 5 Years

                              Important Information and Comparison Rate Warning

                              Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of March 19, 2024. View disclaimer.