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Equity explained

If you’ve been paying down your mortgage, or your home has increased in value, you’ve probably built up some equity. But what could that mean for you? Unlocking your home equity could allow you to upgrade, make improvements to your home or even invest in a new property. 


Get an indication of how much equity you might have in your home by using our home equity calculator.


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Home equity is the total value of the property that you actually own. If you have a home loan, it's calculated as the difference between how much you owe the lender on your home loan and the total value of the property. Equity is usually built up over time as you reduce your mortgage with repayments and as the market value of the property increases.

A simple way of understanding the concept is to imagine that you sell your current home or investment property today and pay off your mortgage in full – equity is the amount of money you’d have left over. 

Tools and resources

Use equity to renovate your home

You may be able to fund your renovating dreams with a home loan increase, but there are a few things you should think about first.


How to use equity to invest in the share market

You could use your equity enter the stock market and invest in things like individual stocks, managed funds and exchange-traded funds (ETFs).


Things you should know

The above rates exclude any LVR discounts available for new loans. 

The purpose of this calculator is to provide you with general information about the amount of usable equity you have in your property and the estimated loan and monthly repayments required to purchase your next home based on the information you provided. The results generated by this calculator are subject to the disclosures below.

The calculation is not an offer of Credit.

This calculation is not an offer of credit, but an estimate only based on the information you provided of the loan and monthly repayments required to purchase your next property and it does not include all applicable fees. Your borrowing power amount may be different when you complete a full application and we capture all details relevant to our lending criteria. Our lending criteria and basis upon which we assess what you can afford may change at any time without notice. Before acting on this calculation you should seek professional advice.

Any calculation made by you using this calculator is intended as a guide.

Results shown are for illustrative purposes only and are limited to the accuracy of the information provided. All costs shown in the calculator including stamp duty, LMI, marketing costs, real estate agent fees, conveyancer fees, governments fees and all optional costs are estimations only, actual costs could be higher than those estimated.

Interest Rates

All interest rates referred to in the calculators are current, as indicated on our home loan interest rates page. The interest rates represented may include promotional discounts and are subject to change. When assessing ability to service a loan, Westpac may use an interest rate that is higher than the current interest rate for the loan requested.

*Comparison rate: The comparison rate is based on a loan of $150,000 over the term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.


1 Customers can make total prepayments of up to $15,000 (cumulative) for loans fixed prior to 21 March 2009, $25,000 (cumulative) for loans fixed between 21 March 2009 and 16 March 2012 or $30,000 (cumulative) for loans fixed on or after 17 March 2012, without costs or fees applying. Prepayments exceeding this threshold may incur a break cost and administration fee.


2 The taxation position described is a general statement and should only be used as a guide.  It does not constitute tax advice and is based on current tax laws and their interpretation.


If at any time before the end of a fixed rate period you switch to another product, interest rate (fixed or variable) or repayment type, then a break cost and administration fee may apply.

LVR stands for the initial loan to value ratio at loan approval. LVR is the amount of your loan compared to the Bank’s valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and don’t change because of changes to the LVR during the life of the loan.


General disclaimers

While the property information available from this page is offered to our customers with the permission of RP Data Pty Ltd, Westpac Banking Corporation accepts no responsibility for the accuracy or completeness of the data. We recommend you seek independent advice before making a decision based on the information. This publication contains data, analytics, statistics and other information supplied to Westpac by RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) (CoreLogic Data). CoreLogic and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) subsisting in any CoreLogic Data. All rights reserved.

The data and information (including commentary) provided in this publication (together, Information) is of a general nature and should not be construed as specific advice or relied upon in lieu of appropriate professional advice. While CoreLogic uses commercially reasonable efforts to ensure the Information is current, CoreLogic does not warrant the accuracy, currency or completeness of the Information and to the full extent permitted by law excludes all loss or damage howsoever arising (including through negligence) in connection with the Information.

*An automated valuation model estimate (AVM Estimate) is a statistically derived estimate of the value of the subject property. An AVM Estimate is generated (i)by a computer driven mathematical model in reliance on available data; (ii) without the physical inspection of the subject property; (iii) without taking into account any market conditions (including building, planning, or economic), and/or (iv) without identifying observable features or risks (including adverse environmental issues, state of repair, improvements, renovations, aesthetics, views or aspect) which may, together or separately, affect the value. An AVM Estimate is current only at the date of publication or supply. An AVM Estimate must not be relied upon as a professional valuation or an accurate representation of the market value of the subject property as determined by a valuer. CoreLogic expressly excludes any warranties and representations that an AVM Estimate is an accurate representation as to the market value of the subject property. To the full extent permitted by law, CoreLogic excludes all liability for any loss or damage howsoever arising or suffered by the recipient, whether as a result of the recipient's reliance on the accuracy of an AVM Estimate or otherwise arising in connection with an AVM Estimate.

Contains property sales information provided under licence from the Land and Property Information (“LPI”). RP Data Pty Ltd trading as CoreLogic is authorised as a Property Sales Information provider by the LPI.