Equity
Lending & MortgagesThe difference between a property's market value and the outstanding mortgage balance — your ownership stake.
Example
Example: You bought a home for $400,000 with a $360,000 mortgage. After 5 years, your mortgage balance is $327,000 and the home is now worth $460,000. Your equity is $460,000 - $327,000 = $133,000 (29% of the home value). You could borrow against this via a HELOC or home equity loan.