Equity Explained: Is It Really the Shortcut to Getting Rich?

Mar 3, 2026

Jaclyn Walsh, a mortgage broking pro who helps clients unlock property value, breaks down what equity really is. Short, punchy chat about how lenders value property, the 80% LVR rule, when tapping equity can speed up investing, and the risks of locking into more debt. Practical prompts on valuations, borrowing limits and when to pause before releasing funds.

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ADVICE

Get A Proper Valuation Not Just Online Estimates

Get a broker valuation (desktop or in-person) to estimate real value before assuming equity.
If a bank valuation seems low, shop around or request another valuation; brokers can often organise free valuations for clients.

ADVICE

Push For A Second Valuation If The First Looks Wrong

If a bank valuation is low, push back and get alternative bank valuations; a good broker will shop lenders to maximise your borrowing.
Zella brokers often seek second opinions when comparables suggest the initial valuation is too low.

ADVICE

Let A Broker Run LVR, LMI And Borrowing Capacity Checks

A broker will check equity, lender LVR limits (70–80% common), LMI cost if over 80% and your borrowing capacity before releasing funds.
Different banks have different cutoffs so comparing lenders changes how much you can extract.

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Everyone keeps saying “just use your equity” like it’s some kind of cheat code to getting rich… but what does that actually mean? To break it all down properly, Victoria sits down with Mortgage Broking queen Jaclyn Walsh to breaking down equity properly. We're talking what it is, how much you can really get, why the bank doesn’t see it the way you do, and when using it can genuinely accelerate your wealth. Because yes, equity can be powerful... but it can also lock you into more debt, more risk, and less flexibility if you don’t understand how it works.

In this ep:
🏡 The equity myth most people believe
🏡 Why the bank can say no (even when your house has skyrocketed)
🏡 The 80% rule banks use to decide how much you actually get
🏡 When equity can boost your wealth… or cap your future borrowing
🏡 Why a value drop can leave you owing money after you sell
🏡 What question you should ask before releasing a single dollar of equity

IF YOU WANT TO KNOW IF YOU HAVE EQUITY: You can contact the team at Zella here
and find them on Instagram.

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Acknowledgement of Country By Nartarsha Bamblett aka Queen Acknowledgements.

The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708, AFSL - 451289.

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