Equity is the engine of an Australian property portfolio. It is how investors buy their second property, then their third, then their tenth. But most investors don’t know how much usable equity they have available at any given time — and they miss opportunities because they haven’t checked.
What Is Usable Equity?
Usable equity is the equity in your property that a lender will allow you to borrow against — typically calculated at 80% of current value minus the outstanding mortgage. If your Northcote property is worth $1,724,500 and your mortgage is $800,000, your gross equity is $924,500, but your usable equity (at 80% LVR) is $579,600.
Equity Tracker Calculation Example
| Property | Current Value | Mortgage Balance | Gross Equity | Usable Equity (80% LVR) |
|---|---|---|---|---|
| Northcote | $1,724,500 | $800,000 | $924,500 | $579,600 |
| Preston | $1,050,000 | $600,000 | $450,000 | $240,000 |
| Reservoir unit | $520,000 | $350,000 | $170,000 | $66,000 |
| Total | $3,294,500 | $1,750,000 | $1,544,500 | $885,600 |
Frequently Asked Questions
How often should I check my usable equity?
Check your equity position before every major decision — refinancing, next purchase, renovation funding, or accessing equity for a SMSF contribution. The Collings tracker updates continuously so you always have a current picture.
The Collings Property Platform tracks your equity in real time. Join free today. collings.com.au/portal
Find your next property with Collings
Track suburbs, get matched to on-market and off-market listings, and manage your whole property search in one place. Access the Collings property portal.
