Quick answer
An equity check means working out, before any emergency, how much of your property's value is free of debt and could realistically support business borrowing. Gather a realistic value, current payout figures, a title search and your ownership details, then calculate your combined LVR at a few loan amounts. Do it once a year. It turns a future funding crisis into a quick phone call and helps you choose between a bank top-up and a caveat loan.
Key points
- Most funding delays come from not knowing your own numbers.
- You need four things: a realistic value, payout figures, a title search and ownership details.
- Calculate combined LVR at three loan sizes to see your real headroom.
- With time on your side, a bank top-up may be cheaper; with a deadline, a caveat loan is faster.
- Repeat the check each year, or whenever values or debts change significantly.
Every business eventually hits a moment where money is needed faster than it’s coming in: a tax bill, a big order, an opportunity, a customer paying late. Owners who already know what their property could support handle that moment with a phone call. Owners who don’t spend the first two days finding paperwork. This guide is the half-hour you can spend now so you’re in the first group.
Why bother before you need it?
Three reasons:
- Speed. Most delays in property-secured lending come from missing information — payout figures, ownership details, title surprises — not from the lender. Our page on what slows a caveat loan lists them.
- Choice. With time on your side you can compare a bank top-up, a registered mortgage and a caveat loan properly. Under pressure, you take what’s fastest.
- Better decisions. Knowing your headroom stops you over-committing, and tells you early if property equity isn’t really an option.
The 30-minute routine
Minutes 0–5: List every property and who owns it
For each property you (or your family, trust or company) own, write down:
- the address;
- the exact names on title — individuals, trustee companies, companies; and
- whether it’s your home, an investment or business premises.
If ownership is shared with a spouse, partner, sibling or business partner, note it. Every owner will need to be part of any future loan.
Minutes 5–10: Order a title search
Order a current title search for each property through the state titles office or an information broker. Titles Queensland, for example, sells current title searches online through OTIS; Victoria’s equivalent is a register search statement, which lists registered proprietors and encumbrances including mortgages, caveats, covenants and notices.
Check it against your list. Any owner you forgot? Any mortgage or caveat you don’t recognise? Our guide on how to read a title search explains each part.
Minutes 10–15: Get realistic values
Don’t use what you hope the property is worth. Use:
- a recent written agent appraisal (most agents will do one for free);
- recent sales of genuinely comparable properties nearby; or
- a recent valuation if you have one.
Then shave a little off. Lender valuations are cautious by design.
Minutes 15–20: Request payout figures
Ask each lender with a mortgage on your properties for a payout figure, not just the balance. If you have a line of credit or redraw secured on a property, note the limit too — some lenders count it.
Minutes 20–30: Do the arithmetic
For each property, and for all of them together, calculate:
Combined LVR = (payout figures + other secured debt + new loan) ÷ value
Work it out at three loan sizes: a small, medium and large version of what you might one day need.
Illustrative worksheet:
| New loan $50k | New loan $150k | New loan $300k | |
|---|---|---|---|
| Value (home) | $900,000 | $900,000 | $900,000 |
| Payout on home loan | $430,000 | $430,000 | $430,000 |
| Combined debt | $480,000 | $580,000 | $730,000 |
| Combined LVR | 53% | 64% | 81% |
Reading it: the $50k and $150k scenarios leave a sensible buffer. The $300k scenario is stretched on one property alone and would probably need more security, a smaller amount or a very strong exit. That’s exactly the kind of thing you want to know on a quiet Tuesday, not the day the ATO calls.
Prefer a calculator? The Caveat Loan Feasibility Checker does this arithmetic and adds structure and timeline guidance. When you’re ready to act, a specialist can check your figures.
Bank top-up or caveat loan: which path suits?
Once you know your headroom, the next question is which door to knock on when the time comes.
| Situation | Likely better path |
|---|---|
| Plenty of time, strong financials, bank willing | Bank top-up or refinance — usually lower cost over a longer term |
| Need is long-term (years) | Registered first or second mortgage |
| Deadline in days, clear exit within months | Caveat loan — see urgent caveat loans |
| Bank has declined or will take too long | Caveat loan or non-bank registered mortgage |
| Trading business, modest amount, no property to use | Unsecured options, typically $5k to $500k |
If you already have a bank loan, remember to check whether your contract restricts other security over the property. We explain what to look for on borrowing with an existing mortgage.
What else should go in your “ready file”?
Keep a folder — digital is fine — with:
- the title searches;
- the latest payout figures;
- the appraisal or valuation;
- copies of current photo ID for everyone on title;
- trust deeds and company details, if any property is held in a structure (see trust or company property); and
- a one-page note of your likely exits — which property you’d sell or refinance, and which receivables or assets could repay a short loan.
Our documents checklist has the full list lenders ask for.
How often should you repeat it?
At least once a year — end of financial year is a natural time — and again whenever:
- property values in your area move noticeably;
- you pay down or increase a loan significantly;
- ownership changes (a new trust, a separation, a partner joining); or
- the business is heading into a period of known strain or growth.
What if the numbers show little equity?
Sometimes the equity check delivers bad news: once the payout figures are in and the value is realistic, there isn’t much room. That’s still valuable to know. Options to consider:
- Pool properties. Two properties with modest equity each can together support more than either alone.
- Plan for a smaller amount. Work out the minimum you’d need in a squeeze, not the ideal.
- Build other options now. A trading business may qualify for unsecured facilities, typically $5k to $500k sized on turnover and bank statements. Setting one up in a calm period is easier than in a crisis.
- Talk to family early. If a relative might one day support the business with their property, have that conversation long before you need it — and make sure they’d get independent advice.
- Pay down secured debt. Every dollar off the payout figure is a dollar of headroom.
And if the check shows the business is relying on equity to cover ongoing losses rather than timing gaps, that’s a signal to talk to your accountant about the business itself, not just its funding.
What does the check look like for a trust or company property?
The same arithmetic applies, with two extra items for your folder: the trust deed and every variation, and the company details for any corporate trustee. Missing deeds are the single most common reason trust-owned property can’t be used quickly, so finding yours is the most valuable part of the check.
Numbers in hand? You’re ready when the moment comes
The owners who get funded fastest are the ones who did this homework on a calm day. If you’ve just done yours and want a second opinion — or the calm day has already passed — we’re here.
The enquiry takes about 60 seconds, and asking doesn’t involve a credit check. We don’t forward your details to a list of other lenders; a specialist reads your figures and calls you to talk through the options. Bring the numbers you’ve just worked out — accurate figures mean a precise answer.
Frequently asked questions
Why check my equity if I don't need a loan?
Because the time you'll need it is usually the time you have least of it. Knowing your numbers in advance lets you move in hours instead of days, and choose the cheapest suitable option rather than the fastest available one.
How do I get a realistic property value without paying for a valuation?
Ask a local agent for a written appraisal, and look at recent sales of genuinely similar properties nearby. Be conservative — lenders' valuations often come in below owners' expectations.
What's the difference between my loan balance and the payout figure?
The payout figure is what it would cost to clear the loan today, including accrued interest and any discharge costs. It's usually a little higher than the balance on your statement.
Should I ask my bank for a top-up first?
If you have time, a straightforward financial position and a bank that's willing, a top-up may cost less over a longer term. If you're up against a deadline, or the bank has said no, a caveat loan is usually faster.
Does checking my equity affect my credit score?
No. Ordering your own title search, asking for a payout figure and getting an appraisal don't involve a credit check. Neither does an enquiry with us.