Property equity is the difference between the current market value of your home and the outstanding balance on your mortgage. As property values increase and mortgage balances decrease through regular repayments, equity builds over time and represents a growing financial asset.
Usable equity is generally calculated as 80 percent of your property value minus your outstanding loan balance. Most lenders require you to maintain at least 20 percent equity to avoid lenders mortgage insurance.
Australians access property equity for renovations, investment property deposits, debt consolidation, and other purposes.
Data sourced from CoreLogic Home Value Index and APRA Quarterly ADI Statistics. Updated quarterly.