Does equity increase your borrowing power?

Generally yes, however it will still depend on your ability to make your loan repayments.The more equity you have in your existing property, the more you can use as security against your new loan. Borrowing power is influenced by a number of factors and each lender will calculate it differently, but generally, a borrowing power calculator considers things like your income, current loans and liabilities, credit cards and their limits, plus your living expenses.
Using our borrowing calculator will give you an idea of what you could borrow.