How much of my home equity can I borrow?

Most lenders let you borrow up to about 80 to 85 percent of your home's value across all loans combined, then subtract what you still owe on your mortgage. So your borrowable amount is the home's value times the lender's cap, minus your current mortgage balance.

That cap is the key. You are not borrowing against your equity directly. You are borrowing up to a ceiling set on the home's total value, and your existing mortgage eats into that ceiling first.

What is the combined loan-to-value cap?

The combined loan-to-value ratio, or CLTV, is the total of every loan against the home divided by the home's value. Lenders set a maximum, commonly 80 to 85 percent. It is called combined because it counts your first mortgage plus any new second loan together, not just the new money.

What is the formula for how much I can borrow?

Multiply your home's value by the lender's CLTV cap, then subtract your current mortgage balance. What remains is roughly what you can borrow. The number moves with three things: your home's value, the cap the lender uses, and how much you still owe. To pin down your starting figure, see how to calculate your home equity.

Here is a worked example

Borrowable amount example. Verified as of July 13, 2026. Home value today: $600,000 Current mortgage balance: $350,000 At an 80 percent cap: $600,000 x 0.80 = $480,000, minus $350,000 = $130,000 you could borrow. At an 85 percent cap: $600,000 x 0.85 = $510,000, minus $350,000 = $160,000 you could borrow.

You can model your own numbers on the mortgage calculators.

How much equity do I need before I can borrow at all?

You generally need enough equity that a new loan still fits under the cap. If you are already at or above the lender's CLTV limit, there is nothing to borrow until you pay down the mortgage or the home gains value. In practice most lenders want you to keep at least 15 to 20 percent of the home's value as untouched equity, which is the flip side of an 80 to 85 percent cap.

Can I borrow more than 85 percent of my home's value?

Sometimes, with the right lender. Some programs go to 90 percent or higher for borrowers who qualify, though the rate and terms are usually tighter. This is where a broker matters, because access to many lenders means access to the few that allow it. As Emmett Clark, I work with more than 240 wholesale lenders, and can tell you which allow a higher cap and what it costs.

Why won't a lender let me use all my equity?

Because the untouched portion is the lender's safety margin. If home values fall and the loan ever has to be recovered through a sale, that cushion covers the gap. It protects the lender, and it also keeps you from being underwater the moment prices dip.

Once you know your number, compare the tools you can use it with: what a home equity loan is, what a HELOC is, and the side-by-side in HELOC versus home equity loan.