Equity

The difference between the property value and the mortgage owed against it.

Equity is the portion of your property you actually own outright — current property value minus current mortgage balance. As you pay down principal AND if the property appreciates, equity grows. Equity can be borrowed against (refinance/redraw) to fund renovations, an investment property deposit or other large purchases. Lenders generally let you access up to 80% of equity without triggering LMI.