Glossary · Investment Strategy
Equity in Property
18 August 2026 · 1 min read
Written for Buyer's Agent, Mortgage Broker, Consumer/Investor
Equity in property is the difference between a property's current market value and the amount still owed on any loans secured against it, representing the portion of the property the owner genuinely owns outright.
Equity grows over time through a combination of loan repayments reducing the outstanding debt and capital growth increasing the property's value. Many property investors use the equity built up in an existing property as security to fund the deposit on a subsequent purchase, a strategy commonly referred to as leveraging equity. Buyers agents and mortgage brokers often work together to assess a client's usable equity when planning portfolio growth.