Your place
Rough numbers are fine — drag a slider or type an exact figure.
Current home value
What the place is worth today — your best estimate, or a recent valuation.
Mortgage still owing
The balance left on your loan right now.
THE RENO
Renovation cost
Roughly what you want to borrow for the work.
CAN YOU BORROW FOR IT?
Partly — some equity, but not the full job
Equity you can access today
$40,000
Short of the reno by
$20,000
You can borrow $40,000 now (up to the 80% line). To fund the full $60,000 that way, your home would need to be worth about $775,000 — or you pay the loan down first.
Where you stand
Home value (your estimate)$750,000
80% lending line$600,000
Mortgage still owing$560,000
Current LVR75%
Usable equity today$40,000
This checks the equity gate only — how much the 80% rule leaves you. Having the equity is necessary, but it's not the whole story.
What else the bank checks
- Fixed-rate timing. On a fixed rate you often can't just draw equity whenever — reno lending usually lands as a top-up when your fixed term next renews. Floating or near renewal, it can happen sooner.
- Serviceability. Equity headroom isn't a yes on its own — the bank stress-tests whether you can afford the bigger repayment at a rate a few points above today's. You can clear the 80% line and still not service the extra borrowing.
- DTI (debt-to-income). Owner-occupier lending is generally capped around 6× your household income. On a high income that rarely bites; on a modest one it can cap you before the 80% line does.
Short on equity? A personal loan can bridge smaller jobs. A licensed adviser reads all three gates against your bank and your timing — that's the real answer.