Property Equity Checker: How Much Could Your Property Back?

Likely structure

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LVR now

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Guide limit

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Owing now New loan Guide limit

Equity check

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General information only. Not an offer of finance or financial advice. Guide limits are conservative first-look figures; each lender sets its own. We never publish rates.

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Equity is the number that does the work

With a property-backed business loan, the lender relies mainly on the property and on how the loan will be repaid. That's what makes these loans quick: there's less need to wait for tax returns or financial statements. It also means one figure matters more than any other, the loan-to-value ratio, or LVR. It's the total of every loan against the property divided by its value. A property worth $1,000,000 with $600,000 owing has an LVR of 60%.

Lenders set a maximum LVR depending on the property type, its location, the loan's position on title and their own appetite. Houses in larger centres usually support the highest ratios. Units, commercial property and rural land are treated more cautiously. The checker uses conservative guide limits for a first look: 70% for houses, 65% for units, 60% for commercial and 50% for rural or vacant land. Real lenders may go higher or lower.

How it picks a structure

Short term with a firm exit: a caveat loan is usually quickest, and $20k to $250k is possible same day once title, value and signers are sorted.
Longer terms while keeping your home loan: a second mortgage sits behind your existing lender.
No existing loan, or happy to replace it: a first mortgage, often from a private lender first and a bank later.
A sale or refinance on the way: a bridging loan covers the gap.
Commercial premises: see commercial property loans, where leases and zoning feed into value.

An illustrative example

A Wollongong plumbing company needs $150,000 to clear an ATO debt and buy a second van. The director's house is worth about $950,000 with $480,000 owing, so the LVR today is roughly 51%. Adding $150,000 takes it to about 65%, inside the 70% guide for a house. The money is needed for nine months until a large retention is paid, and the director wants to keep the current home loan. The checker suggests a caveat loan, with a second mortgage as the alternative if the retention date is uncertain. Illustrative only.

Before you rely on the number

Use a cautious value. Lender valuations often come in below agent appraisals, and the gap can be five to ten percent. Try the checker at a lower value to see how sensitive your borrowing is. Our guide to what a valuer checks explains why, and our guide to planning the exit shows how to make the repayment plan solid.

Want a person to check it?

Send us the property, what's owing, what you need and how you'll repay. There's no credit check to enquire, your details aren't blasted to a list of lenders, and one experienced person will call you. Accurate figures mean a quick, straight answer. Start your enquiry.

Frequently asked questions

What does the equity checker do?

It takes your property's estimated value, what's owing on it and how much you need, then works out your current loan-to-value ratio, the ratio after the new loan, roughly how much usable equity a cautious private lender might see, and which property-backed structure is likely to suit.

Where do the loan-to-value limits come from?

They're conservative guide figures by property type that we use for a first look. Every lender sets its own limits, and the valuation, location and your exit can move them up or down.

Is anything I enter sent or saved?

No. The checker runs entirely in your browser. Nothing is stored and nothing touches your credit file.

Why does my exit change the result?

Short-term property lenders decide largely on how the loan will be repaid. A firm, dated exit supports a caveat or bridge. A vaguer or longer exit points to a second or first mortgage with a longer term.

Why are there no rates?

Every business loan is priced on the borrower's situation, security and term, so a published figure would be wrong for most people. The checker is about whether your equity is likely to be enough; cost comes next, with a real person.

What if the checker says my equity looks short?

You could borrow less, add another property as security, use an unsecured loan for part of the amount, or ask whether a lender with a different appetite would see it differently.

Property equity checker