Most people have heard of equity. Few can calculate it. Fewer still know how to use it safely. Get this wrong and you stay in debt. Get it right and it becomes the engine that builds your property portfolio.
For this article we are using a 90% maximum LVR you may qualify for 95%.
What Is Equity?
Equity is the difference between what your property is worth today and what you owe the bank.
- Buy a home for $800,000 with a $280,000 deposit and a $520,000 loan.
- On day one, you have $280,000 equity.
- Over time, your property value rises and your loan decreases growing your equity.
How to Calculate Available Equity
Banks won’t let you use all your equity. They cap it based on a Loan-to-Value Ratio (LVR).
The Formula
(Property value × LVR) Current loan = Available equity
Side-by-Side Comparison $800,000 Property · $520,000 Loan
| Metric | Standard Borrower (80%) | Medical Professional (90%) |
|---|---|---|
| Property Value | $800,000 | $800,000 |
| LVR Cap | 80% | 90% no LMI |
| Maximum Loan | $640,000 | $720,000 |
| Current Loan | $520,000 | $520,000 |
| Available Equity | $120,000 | $200,000 |
| Your Advantage | $80,000 more in usable equity without paying LMI | |
Risk Checklist
Equity is powerful, but don’t use it blindly.
Before You Use Your Equity
Always keep a buffer in cash or offset.
Match repayment type to lender policy (IO vs P&I).
Don’t rely on desktop valuations get a formal bank valuation.
Get pre-approval before property shopping.
The Bottom Line
Equity is the foundation of every successful property portfolio. Calculate it properly, keep your buffers, and use it for investments not liabilities.
If you’re a doctor, specialist, or nurse, your profession gives you a genuine edge. Don’t waste it on a poor investment. Use it to buy the right property, with the right finance structure, and build real wealth.
See how much equity you can access
Use our equity calculator or book a 15-minute consultation to confirm your lending options and map your next purchase.
Use Equity CalculatorBook a Consultation
General information only. Lending policies change. We’ll assess your serviceability and product fit before making any recommendation.
General information only. Lending policies change regularly. We'll assess your individual serviceability and product fit before making any recommendation.