Negative Equity
nounneg·a·tive eq·ui·typronounced NEG-uh-tiv EK-wih-tee
Last reviewed 16 April 2026
What does the noun Negative Equity mean?
When you owe more on your mortgage than your home is worth. This typically happens when property prices fall after you bought with a small deposit. Negative equity only becomes a financial problem if you need to sell or cannot keep up repayments.
How the noun Negative Equity is used
After buying at the peak with a 5% deposit, the market dipped 10% and we were in negative equity, but it only mattered if we needed to sell.
Synonyms
underwater mortgage, upside down mortgage
Related words
Cite this entry
MLA citation: "Negative Equity." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/negative-equity. Accessed 29 May 2026.
Chicago citation: How to Property. "Negative Equity." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/negative-equity.
APA citation: How to Property. (2026, April 16). Negative Equity. https://howtoproperty.com.au/definitions/negative-equity