Home equity: How it can help you buy, invest or renovate

The answer to this simple calculation can determine whether you have the funds to buy your next home or investment, or even consider a renovation.

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This article was created in sponsorship with Westpac

Simply put, home equity is the difference between the amount left on your home loan and the value of your home or investment property.

Think of this as the portion of your home owned by you and not your lender.

However, figuring out your usable equity will give you an indication of the funds you’re able to borrow against and use as a deposit on your next home or investment property, or to fund a renovation.

Try Westpac’s home equity calculator to do the maths for you

Even if you don’t currently have plans to buy, refinance or renovate, it’s good to be aware of your equity, should you decide to make a major property move at a later date. For a simple 60 second explanation of what home equity is, how to figure it out and what it could mean for your financial future, have a look at the video above.

This article was created in sponsorship with Westpac