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negative equity

British

noun

the state of holding a property the value of which is less than the amount of mortgage still unpaid

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Homeowners see negative equity in their homes as they owe more on their mortgage than the actual value of their home.

From MarketWatch • Nov. 7, 2025

Edmunds says 28.1% of trade-ins had negative equity in 3Q, up from 24.2% in 2Q and the highest share on record since 1Q 2021.

From The Wall Street Journal • Oct. 16, 2025

Postecoglou started with negative equity, which has already diminished, having never been a favoured appointment of the fans, but the 60-year-old feels victories will appease the doubters.

From BBC • Oct. 3, 2025

Analysts warn that Country Garden could become insolvent if it had to write off large inventories, and run into negative equity if its asset values dropped over time.

From Reuters • Aug. 17, 2023

In February, 44.2 percent of new vehicles purchased had a trade-in, and 18 percent of those trade-ins had negative equity, meaning they owed more on the car than it was worth.

From Washington Post • Apr. 5, 2023

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023