Useable equity

Useable equity is the portion of your property's value you can actually borrow against — typically your property's value times the bank's maximum LVR, minus your existing mortgage.

If your home is worth $1,000,000 with a $500,000 mortgage and the bank will lend to 80% LVR, your useable equity is $300,000 ($800,000 minus $500,000) — not the full $500,000 of paper equity. Useable equity is how most New Zealanders fund their first investment deposit without saving it in cash.

This page is general information, not financial, legal, or tax advice. Rules change — always confirm current settings with the linked official sources and seek independent professional advice.