net equity

The net equity in a property is:

• house and/or land value

minus

• outstanding mortgage only (no interest)

Net equity in a vehicle/caravan/boat is the amount of money the client would have if they sold their vehicle/caravan/boat after they had paid any debts owing on it.

For example, the client has a boat that has a market value of $4,000. They still owe the bank $1,500, so the net equity would be $2,500. This is the amount the client would get if they sold the boat at market value and paid the bank what it was owed.