Key Terms

What is the protected equity option?
There is a no negative equity guarantee, which means you will never owe more than the value of your property. However, if it is important to you to know that you definitely have some equity left in your property at the end of the loan then this option could be for you.

This may be because you wish to leave money to your children or want to be sure you have some money for medical bills or to get into a retirement home. It’s a safety net that we think will appeal to many customers.

In the calculator just enter the percentage you wish to protect and then it will show you how much you can borrow.

Example:
Bill has a property worth $1m. He decides to "protect" 20% of the equity. This means that Bill can borrow against 80% of the value of the property i.e. $800,000.

This means that he cannot borrow as much as before, due to the effective value of the property being lower, but $200,000 is "protected"

In 10 years time the property is worth $2m, then the protected component is now worth $400,000, whatever has happened to interest payments in the meantime

Disclaimer: The information provided on this page is general information only and is based on the accuracy of the information provided by you. The answers provided are estimates only and do not constitute a quote or a loan offer. The repayment amounts do not include any specific fees which may apply to this type of loan. All applications for credit are subject to approval criteria. Fees and Government charges may apply. Full details of terms and conditions, including fees and charges, are available on application. These may be varied, or new terms and conditions introduced, in the future.