Home Equity Loan Calculator
Calculate how much you can borrow against the equity in your home.
Tip: Albanian banks usually allow borrowing up to 70-80% of the property's value minus existing debt — be careful not to overload the property with debt.
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About this digital tool
The home equity loan calculator shows how much you can borrow using the part of your home that you have paid off as security. Equity is the current value of the property minus the remaining mortgage debt. Enter the property value, the remaining debt and the maximum percentage the bank allows, and the tool finds the available amount and, with the rate and term, the monthly payment and total cost too.
This loan usually has a lower rate than a personal loan, because it is secured by the property. The risk is that if you fail to pay, you can lose your home. Don't use it for spending you don't need. The result is an estimate; the valuation of the property and the terms are set by the bank.
How to use
- Enter the current value of the house
- Enter the remaining mortgage debt
- See the available equity
- Enter the amount you want to borrow
- Enter the rate and the term
- See the monthly payment
Frequently asked questions
What is home equity?
Equity = Current property value - Remaining debt. E.g., if the house is worth €100,000 and you have €40,000 of mortgage debt, your equity is €60,000.
How much can I borrow against equity?
Usually 70-80% of the equity. In the example with €60,000 of equity, you can take a new loan of €42,000–48,000.
What are the risks?
The main risk: if you fail to pay, the bank can seize your property. Also, if the property's value falls, you can end up with debt greater than the value (negative equity).
How is home equity calculated?
The current value of the house minus the remaining mortgage debt. If the house is worth 12,000,000 lek and the debt is 5,000,000, the equity is 7,000,000 lek.
Why does an equity loan have a lower rate?
Because it is secured by the property, so the bank takes less risk than with a personal loan. In exchange, the property is put at risk if it isn't repaid.