Calculators
Loan to value ratio calculator
LVR is the number lenders look at first. It decides whether mortgage insurance applies, which pricing tier you sit in, and how closely your application gets read. See where you land and exactly what it would take to drop a band.
Your numbers
Loan divided by property value, expressed as a percentage.
The lender's valuation if you have one, otherwise the purchase price.
The amount you're borrowing, or the balance still owing.
Loan to value ratio
80.0%
A $600,000 loan against a $750,000 property puts you in the 60.01% – 80% band. Another $150,000 of deposit would move you into 60% or less.
Band
60.01% – 80%
Deposit / equity you hold
20.0% of the value
$150,000
Lenders mortgage insurance
Not payable
Loan to reach 60% or less
The ceiling of the 60% or less band
$450,000
Extra deposit to get there
$150,000
Email me these resultsPlus a quick note on what a lender would actually do with them.
Where you sit on the LVR scale
- 60% or less
The lowest pricing tier most lenders publish. Several reserve their sharpest discounts for loans at or under 60%.
No lenders mortgage insurance.
- 60.01% – 80%You are here
The mainstream tier. Almost every lender and product is available to you, and pricing is competitive.
No lenders mortgage insurance — 80% is the usual cut-off.
- 80.01% – 90%
Still widely available, but some lenders load the rate above 80%, and the loan is assessed more closely.
LMI normally applies, and the premium climbs steeply through this band.
- 90.01% – 95%
Fewer lenders, tighter policy on income type, genuine savings and postcode, and rate loadings are common.
LMI applies and is at its most expensive. Guarantee schemes or a guarantor may be cheaper.
- Above 95%
Rare outside a guarantor or a government guarantee. Expect a very short list of lenders.
LMI is either unavailable or extremely expensive at this level.
Under the bonnet
Assumptions & how we calculate
We show our working so you can judge the number, not just read it. Every lender applies its own policy on top of maths like this.
- LVR is the loan amount divided by the property value, expressed as a percentage. Lenders use the lower of the purchase price and their own valuation.
- The bands shown — 60%, 80%, 90% and 95% — are the thresholds most Australian lenders price and set policy around. The descriptions are about policy shape; no rate, discount or premium is quoted.
- Lenders mortgage insurance is assumed to apply above 80% LVR, which is the usual cut-off. A guarantor or a government guarantee can change that.
- The extra deposit to reach the next band down assumes the property value stays the same and the whole amount comes off the loan.
- A cross-collateralised loan, a guarantor's security or a second property changes the calculation entirely — this treats one loan against one property.
The information on this website is general in nature and does not take into account your personal objectives, financial situation or needs. Before acting on any information you should consider whether it is appropriate for you. Terms, conditions, fees, charges and normal lending criteria apply. Rates are subject to change.
FAQs
Questions people ask
What is LVR and why do lenders care about it?
LVR is the loan divided by the property's value, as a percentage. A $600,000 loan on a $750,000 property is an 80% LVR. It is the single best measure of the lender's risk: the lower the LVR, the more equity stands between the lender and a loss if the property has to be sold. That is why it drives pricing, mortgage insurance and, often, whether the loan is approved at all.
Which value does the LVR use — the price I paid or the valuation?
Lenders use the lower of the contract price and their own valuation. For a purchase those are usually the same, but a valuation that comes in under the price lifts your LVR and you have to cover the gap in cash. For a refinance or an equity release, the lender's valuation is the only figure that counts, however confident you are about what the place is worth.
Why does 80% matter so much?
It is the line above which lenders mortgage insurance is normally charged. Cross it and a premium is added that can run into five figures. Some lenders also price differently above 80%, and assess the application more closely. If you are just over the line, finding a small amount of extra deposit is often the single highest-return thing you can do.
Do the 60% and 90% bands really change the rate?
Often, yes. Many lenders publish tiered pricing, with their sharpest discounts reserved for loans at or under 60% and sometimes 70%, and loadings above 80%. The tiers and the size of the difference vary by lender and change regularly, which is why this calculator describes what a band typically means rather than quoting a rate.
How do I lower my LVR without more cash?
Three ways, broadly. Pay the loan down — extra repayments reduce the numerator. Wait for the value to rise and order a revaluation, which reduces the denominator. Or add security, such as another property or a guarantor's property, which changes the calculation entirely. Renovations that genuinely lift the valuation can also work, though not dollar for dollar.
Next step
Numbers looking good? Let's turn them into a pre-approval.
A calculator can't read a payslip or a lender's policy. Sachin can — book a free call and we'll check these numbers against 70+ lenders, then tell you what's actually possible.
Free, no obligation. General information only — not credit advice.