Projected home equity
Property value minus projected secured debt
Pakistan · PKR
Pakistan home equity calculator.
Estimate how much of your property you own, usable equity at a target LTV and the effect of a top-up or property-backed finance.
Property-value sensitivity
Estimated equity after proposed borrowing and immediate home-loan paydown
| Value change | Property value | Secured debt | Home equity | Equity percentage | Combined LTV |
|---|
Year-by-year equity projection
Uses your entered property-growth and home-loan-paydown assumptions
| Year | Property value | Existing secured debt | New borrowing | Total debt | Home equity | Combined LTV |
|---|
Planning estimate only—not a valuation, credit decision or commitment to lend. A lender assesses income, expenses, credit, loan purpose, property, valuation and serviceability. Borrowing secured against your home puts the property at risk if repayments are not made.
Pakistani homeowner guide
How much equity do you have in your home?
Home equity is the estimated property value minus the outstanding home loan and any other debt secured against it. If a home is worth Rs 1 crore and secured debt totals Rs 55 lakh, estimated total equity is Rs 45 lakh. Equity can increase as principal is repaid or property value rises, and it can fall after a price decline or additional borrowing.
Total equity is not the same as usable or borrowable equity. A bank or housing finance company uses its own valuation and LTV policy, then assesses repayment capacity, credit, title, property and loan purpose.
How usable home equity is calculated in Pakistan
A planning method is to multiply the lender-accepted property value by a target LTV and subtract existing secured debt. At a 70% target, a Rs 1 crore property produces maximum planning debt of Rs 70 lakh. Subtracting a Rs 55 lakh home-loan balance leaves Rs 15 lakh of estimated usable equity.
Seventy per cent is an editable illustration, not a guaranteed limit. The permitted LTV can differ by institution, product, loan size, property and purpose. Valuation, income, existing obligations, credit profile and remaining tenure may reduce the sanctioned amount.
Home-loan top-up
An existing lender may offer a top-up subject to repayment history, remaining tenure, valuation and eligible purpose. Its rate and term can differ from the original home loan.
Loan against property
A property-backed finance is secured lending that may be used for approved personal or business purposes. Pricing and LTV are often different from a housing loan.
Balance transfer with top-up
A new lender may refinance the existing balance and approve extra borrowing. Compare processing, valuation, legal, mortgage and closure costs with the total saving.
Reverse mortgage
Pakistan's reverse-mortgage framework is a separate later-life product for eligible senior homeowners. It is not modelled by this standard repayment calculator.
Top-up and loan-against-property repayments
The payment section compares a reducing-balance EMI illustration with an interest-only scenario. An EMI reduces principal over the selected tenure. An interest-only payment does not reduce the borrowed balance, so the displayed total assumes principal is repaid at the end.
Because the borrowing is secured on the property, missed payments can put the home at risk. Compare the annual rate, processing charges, legal and valuation costs, EMI and total interest—not only the amount released.
Why property-value scenarios matter
Usable equity depends on the value accepted by the lender. The sensitivity table shows how a 10% or 20% decline could reduce equity and increase LTV after the proposed borrowing. The projection is an illustration, not a property-price forecast; growth and annual principal reduction may be higher, lower or uneven.
For a focused ratio comparison, use the Pakistan LTV calculator. To compare home-loan EMI and total interest, use the Pakistan mortgage calculator.
Reverse mortgage loans are different
Reverse mortgage or equity-release products, where offered, are separate from an ordinary top-up or property-backed facility and require product-specific eligibility and legal review. Payments, eligibility and repayment mechanics differ from a top-up or property-backed finance. Read the SBP housing-finance resources and obtain independent advice before considering one.
Pakistan home equity questions
How do I calculate home equity?
Subtract the home-loan balance and other secured debt from the property's current estimated value.
What does usable equity mean?
It is an estimate of additional borrowing room below a chosen LTV. At a 70% target it equals 70% of the accepted property value minus current secured debt, when positive.
Can I borrow all of my home equity?
Usually not. The lender retains a margin and assesses repayment capacity, credit, property, title and loan purpose.
Will the lender use my estimated property value?
Not necessarily. The institution may obtain its own valuation. A lower accepted value reduces estimated equity and borrowing room.
Is a top-up the same as a property-backed finance?
No. Both can use property security, but eligibility, purpose, pricing, tenure, documentation and tax treatment can differ.
Can home equity become negative?
Yes. Negative equity occurs when total secured debt exceeds the property value.