Using your home equity to borrow more money

Did you know, you may be able to use the equity in your home to fund your next big purchase? Here's a quick guide that explains how home equity works and the benefits of using this to get your next loan.


What is home equity?

Home equity is the difference between the market value of your property and the amount still owing on your home loan. So if the market value of your home is more than the amount you owe, you may be able to use this to get a loan.


How to work out your home equity

First you'll need to understand the market value of your property.

If you have a home loan with ASB, you can use the estimated value range within ASB Home Central as an initial guide. The valuation used in Home Central may not be appropriate for lending purposes. There are other criteria that need to be met, such as ability to service lending. Another good source is QV. Or, for a more accurate estimate, you can get a registered valuation on your home.

To calculate your equity:

  1. Take the market value of your home
  2. Subtract the amount you owe on any lending secured by the property - you can view this easily on ASB Home Central

For example, if the market value of your home is $500,000 and your total lending amount is $200,000, then your equity would be $300,000. 

For investment properties, minimum equity requirements may apply.


Benefits and risks of using equity in your home


  • Your home loan interest rate will generally be lower than on a personal loan or credit card.
  • It's convenient and easy to manage when all your loan payments are rolled in one.
  • You can spread the cost over a longer period compared to a personal loan.
  • As long as you can afford the loan, you can use these funds for a variety of reasons – for example, to buy an investment property, do home renovations, fund a holiday or boat, or pay off other debt.


  • When house prices change, your loan stays the same. If house prices go down, you could be left owing more than the value of your home.
  • If your income changes, or if interest rates increase, your repayments on a bigger loan could be harder to manage.


Common ways to create equity

Remember, you can manage your home loan through ASB Home Central. Trial different loan repayment options before you commit to them to make sure you're doing what's best for you.

Making improvements to your property may increase its value and may increase your equity in your home. However this will depend on how much you borrow to renovate and what the market value of your home is after the improvements.

Apply for an ASB home loan top up

Apply online

You can apply for a top-up on your home loan online in FastNet Classic. The application only takes about 10 minutes to complete, and there's no need to visit a branch.

Don't have FastNet Classic internet banking? Call 0800 FAST NET today and we'll help to get you up and running.

Apply online

Visit a branch

If you prefer you can visit us at one of our many branches across New Zealand.

Find a branch

Call us

We’re here weekdays 8:00am - 8:00pm or Saturday 9:00am - 5:00pm to answer your home loan questions.

0800 100 600

Other helpful guides

ASB’s lending criteria, terms and fees apply. A Low Equity Margin may apply.

The above information is a guide only and should not be relied on as it does not take into account your personal financial situation.

Home loans Using your home equity to borrow more money