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Free tool
Construction equity calculator
Work out how much equity your property could free up for a build, a materials order or a cash flow gap, and whether it covers the shortfall. Planning numbers in 30 seconds, no sign up.
Your estimate
Equity on paper–
Usable equity (comfortable)–
Usable equity (stretch)–
Total lending after this loan–
Type in your property value, what you owe and how much you need.
See if you qualify › Planning estimate only, using typical lending bands rather than any one lender's policy. A valuation and your exit plan decide the final figure. No credit check when you first enquire, and your details go to one specialist, not a pile of lenders.
How the calculator works
Equity on paper is simply what the property is worth minus what you owe. Lenders never lend all of it. They keep a buffer for selling costs, interest and market movement, so they cap the total of all loans against the property at a percentage of its value. That percentage is called the loan to value ratio, or LVR.
The calculator uses planning bands that are common for short term, property secured business loans:
| Property | Comfortable | Workable | Stretch |
|---|---|---|---|
| House, unit or townhouse | up to 65% | 65% to 75% | 75% to 80% |
| Commercial property | up to 55% | 55% to 65% | 65% to 70% |
| Vacant land | up to 50% | 50% to 60% | 60% to 65% |
If your number lands in the comfortable band, the conversation is usually about speed and documents. In the stretch band, a strong exit plan matters more, and adding a second property or a guarantor can make the numbers work. Our loans are secured against property you already own, such as your home, an investment property or land with equity, not against the finished value of the build.
Not sure which loan fits? Read about fast second mortgages, construction loans for small builds and building materials finance, or how to cover progress payment gaps.
Frequently asked questions
How much equity can I use for a construction loan?
It depends on the property, the lender and the loan type. As a planning guide, many lenders are comfortable when the total of all loans on a residential property stays around 65% of its value, will look at 65% to 75%, and treat 75% to 80% as a stretch. Commercial property and vacant land usually sit lower.
Is this calculator a loan offer?
No. It is a planning estimate using the numbers you type in. A lender's valuation, your exit plan and the type of property decide the real figure. It helps you walk into the conversation knowing roughly where you stand.
What counts as an exit plan?
The way the loan gets repaid at the end of the term: a progress claim or final payment landing, a sale settling, a refinance to a bank, or your business cash flow. Short term loans are approved on the strength of the exit, not just the equity.
Can I use equity in someone else's property?
Yes, if the owner agrees to be a guarantor or co-borrower and gets independent advice. A family member's home or a business partner's investment property is often used this way.
What if I don't own property?
If your business has been trading six months or more with an ABN, unsecured cash flow loans are available based on your business bank statements. They are sized to turnover rather than equity.
Numbers look workable?
Tell us what you need in about 60 seconds. No credit check when you first enquire, and a real person calls you back.