Equity is the difference between what your house is worth and what you owe on your loan. If your house is worth more now than when you bought it you may be able to refinance and gain the funds needed for your renovation through your home loan. Equity is the difference between what your house is worth and what you owe on your loan. If your house is worth more now than when you bought it you may be able to refinance and gain the funds needed for your renovation through your home loan.