Although situations will vary slightly, most lenders will allow you to borrow 80% of the equity you have built up. Using the previous example, your home equity is $200,000 so you would be able to borrow $160,000.

When deciding to borrow against your home, you need to factor in a few extra steps compared to other types of loans. This means the process will take a bit longer as you’ll need a property assessment to discover the current fair market value.