Projected home equity
Property value minus projected secured debt
Spain · EUR
Calculate Your Equity in a Home in Spain
Estimate how much of your property you own, usable equity at a target LTV and the effect of additional secured borrowing.
Property-value sensitivity
Estimated equity after proposed borrowing and immediate mortgage paydown
| Value change | Property value | Secured debt | Home equity | Equity percentage | Combined LTV |
|---|
Year-by-year equity projection
Uses your entered property-growth and mortgage-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.
Separate property wealth from cash
Home equity is the estimated property value minus the borrowing secured on it. A €300,000 home with €170,000 of secured debt has €130,000 of equity before selling costs and taxes. This amount forms part of your overall wealth, but it is not cash available in an account. The calculator distinguishes total equity from potential borrowing room.
An example with two different limits
With a chosen 75% LTV ceiling, the same property supports €225,000 of modelled debt. Subtracting €170,000 leaves €55,000 of theoretical room before costs and lender assessment. If you separately choose to retain 30% equity, the personal‑buffer calculation allows only €40,000 of additional debt. Review both figures rather than treating either one as an approved amount.
Additional debt and net proceeds
Proposed borrowing increases secured debt and reduces retained equity. Percentage and fixed costs are deducted from the funds received, not added to the borrowing balance. The payment estimate applies only to this additional loan; keep the payment on your existing mortgage within your household budget. A renovation budget should be compared with net proceeds, not the gross loan amount.
Repayment and interest‑only illustrations
The amortising option calculates regular monthly repayments at a constant rate. Credit‑line mode illustrates interest‑only payments on the full proposed amount while leaving the principal outstanding. These are modelling choices rather than confirmation that a particular Spanish lender offers either structure.
The annual projection is simplified
The one‑off scenario applies a value change and immediate paydown. The annual table uses separate inputs: compounded annual property growth, your fixed annual reduction in existing debt and a straight‑line reduction of new amortising borrowing. That last assumption does not represent an actual repayment schedule. The annual table does not incorporate the one‑off value change or immediate paydown.
Frequently asked questions
How is home equity calculated?
The tool subtracts the mortgage and other secured debt from the value entered. It does not deduct future selling costs or taxes.
Is usable equity available cash?
No. It is theoretical borrowing room up to your chosen LTV ceiling. Obtaining cash requires a sale or approved financing, with the associated conditions and costs.
Are fees added to the new loan?
No. They reduce estimated net proceeds. Additional secured debt equals the gross proposed borrowing amount entered.
Does the payment include my existing mortgage?
No. It covers additional borrowing only. Add the payments on existing debts when assessing the overall monthly commitment.
Is the annual table an amortisation schedule?
No. New amortising debt falls in a straight line and existing debt falls by the annual paydown assumption. It is a simplified equity projection separate from the monthly-payment calculation.