Secured borrowing calculator

How to use the secured borrowing calculator

Start with the property you'd most like to use. Enter a realistic figure for what it would sell for today — not the price you'd hope for in a good month — and everything already secured against it: the bank mortgage, any line of credit tied to the title, and any existing second mortgage or caveat loan. If you own more than one property, add each one. Many business owners are surprised by how much equity is spread across a home, an investment unit and a small commercial premises once it's all in one place.

Then choose an LVR to test. LVR stands for loan-to-value ratio: the total of all loans secured against a property divided by its value. The calculator multiplies each value by the LVR you pick, subtracts what's owing and adds the results together. That figure — the usable equity — is the room a new private loan could work with before anyone has looked at the details. Read more in how much equity can I use?

What the result tells you (and what it doesn't)

The estimate shows the scale of what's possible and the likely structure. A debt-free property points towards a private first mortgage. A property with a bank loan you're happy to keep points towards a second mortgage or a fast caveat loan. Where the bank loan itself is the problem — a review, a refusal, a facility being called in — refinancing into a private first mortgage can make more sense.

What the calculator can't see is the detail a lender weighs: the type and location of the property, its condition, what the money is for, how long you need it and, above all, how the loan will be repaid at the end. That's why the lending limit on your Letter of Offer can differ from this estimate in either direction.

Why the value you enter matters so much

No formal valuation is required here — the lender assesses the property itself. That saves you a valuer's fee and several days, but it also means the value and debt figures on your enquiry carry real weight. A specialist will check them against recent sales and the title search. Getting them right first time is the quickest way to an accurate answer.

Ready to test it for real?

If the numbers look workable, the next step takes about 60 seconds. Tell us about the property and what you need — there's no credit check when you enquire, your details go to one direct lender rather than a pile of them, and a specialist will call to talk it through.