LVR Calculator
Calculate your Loan-to-Value Ratio and whether you'll need Lenders Mortgage Insurance.
The amount you need to borrow
How It Works
The calculator divides the loan amount by the property value and multiplies by 100 to get the LVR percentage. It then classifies the result into risk bands: low risk (< 60%), standard (60-80%), LMI zone (80-90%), and high LMI (90%+). It shows the deposit amount implied by the LVR and flags whether LMI is likely required.
Frequently Asked Questions
What is LVR?
Loan-to-Value Ratio (LVR) is the percentage of a property's value that you're borrowing. LVR = (Loan Amount / Property Value) x 100. An LVR of 80% means you're borrowing 80% and have a 20% deposit or equity.
What LVR triggers LMI?
Most Australian lenders require Lenders Mortgage Insurance (LMI) when LVR exceeds 80%. Some lenders offer LMI-free loans up to 85% LVR for certain professionals (doctors, lawyers, accountants). Above 90% LVR, LMI premiums increase significantly.
Does LVR affect my interest rate?
Yes. Many lenders offer tiered interest rates based on LVR. You'll typically get the best rates at LVR of 60% or below. Rates may increase at LVR brackets of 70%, 80%, and 90%.
How can I reduce my LVR?
Save a larger deposit, use a guarantor (family guarantee lets you borrow 100%+ LVR without LMI), buy a cheaper property, or use the First Home Guarantee Scheme to avoid LMI with just 5% deposit.
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