How much you can borrow against your home
An original EquityWise analysis of borrowing power by home value and LTV cap.
Last reviewed: February 2026 · Original EquityWise analysis
How much can a homeowner actually borrow against their house? Lenders cap total mortgage debt at a combined loan-to-value (CLTV) ratio — often 80% to 90% of the home value — and you can only tap what is left after your existing mortgage. We modelled the borrowing power for a homeowner who still owes $200,000, as the home value and the lender cap change.
- On a $500,000 home with $200,000 still owed, an 85% CLTV cap allows roughly $225,000 of new borrowing.
- Raising the cap from 80% to 90% on that same home unlocks about $50,000 more.
- Because the mortgage balance is fixed, every $100,000 of extra home value adds $85,000 of borrowing power at an 85% cap.
Borrowing power by home value (owing $200,000)
| Home value | At 80% CLTV | At 85% CLTV | At 90% CLTV |
|---|---|---|---|
| $300,000 | $40,000 | $55,000 | $70,000 |
| $400,000 | $120,000 | $140,000 | $160,000 |
| $500,000 | $200,000 | $225,000 | $250,000 |
| $600,000 | $280,000 | $310,000 | $340,000 |
| $700,000 | $360,000 | $395,000 | $430,000 |
| $800,000 | $440,000 | $480,000 | $520,000 |
These are ceilings set by the LTV cap; your actual approval also depends on income, credit and the lender.
How the cap works on a $500,000 home
| CLTV cap | Max total debt allowed | New borrowing available |
|---|---|---|
| 80% | $400,000 | $200,000 |
| 85% | $425,000 | $225,000 |
| 90% | $450,000 | $250,000 |
What this means
Usable equity is not the same as total equity: you keep a lender-required cushion. Estimate your own figure with the home equity calculator or check your ratio on the LTV calculator.
Method
New borrowing = (home value × CLTV cap) − current mortgage balance, floored at zero. We hold the balance at $200,000 to isolate the effect of home value and the cap. Real limits depend on the lender, your income and credit. Figures are representative estimates. See our methodology.
Cite this study
Writers may cite these figures with attribution to EquityWise and a link to this page. Suggested citation: “EquityWise, ‘How Much You Can Borrow Against Your Home’ (2026), myhomeequityestimate.xyz/home-equity-borrowing-study.html”.