# LVR Calculator

Loan amount?
\$
Property value ?
\$

## Contact a mortgage broker

Talk to one of our mortgage brokers about your situation: Yes  No

The Loan to Valuation Ratio (LVR) of your loan is the percentage of the property value that you’re borrowing.

Lenders use the LVR to assess your home loan application, as it indicates the likelihood that they will lose money in the event that you can’t repay your loan.

An LVR of 100% is a very high risk, whereas an LVR of 80% is considered as safe by most lenders. The majority of lenders will require you to pay Lenders Mortgage Insurance (LMI) if you borrow over 80% LVR.

Looking for ways to borrow at a high LVR?

Check out 5 Ways To Borrow At A High LVR to do just that!

## Example of how to calculate LVR

If you borrow \$900,000 against a property valued at \$1,000,000 then your mortgage will have a 90% LVR.

This would be considered high risk LVR by the lender, so they would require Lenders Mortgage Insurance for your loan.

## How does my LVR affect my loan?

The policy used by the lender will change depending on the LVR of your loan.

If you’re borrowing 80% LVR or less then the lender may make exceptions to their normal lending policy. This is considered to be a low LVR home loan.

However, if you’re borrowing above 80% LVR, you’ll find that lenders are less willing to make exceptions, ask for more documents and assess your loan in a conservative way. This is considered to be a high LVR mortgage.

You can read the pages below for more information on applying for a high LVR home loan:

• Monica Rutner

Hi Home Loan Experts, I wanted to know how the lenders calculate LVR in case of guarantors. I’ve seen a property worth 490k in Ballarat and my parents are giving guarantee for me and their house is worth 250k and it is fully owned by them. What will be the LVR here?

• Hi Monica,

If you want to buy a property for 490,000, the lenders will lend you 80% i.e. 392,000 against your property as a security and another 20-25% i.e. 98,000 against both your parent’s property and your property. The exact structure of this varies between lenders.

Your LVR would be 100% to 105% on your property alone. The overall LVR considering both properties would be 66% approximately. Some lenders would not accept this as it is a large guarantee as a percentage of your parents home.

• L Coulter

Hmm… I had actually estimated a 90% LVR but some price changes and also a dip in my savings due to a personal situation makes it so that I need to borrow at 95-98%. Do you have a calculator that I can use to find out if I can qualify for a no deposit home loan instead?

• Hey there,

Yes, you can use the no deposit loan calculator to find out if you qualify for a no deposit loan. We also narrow down your options as to what alternative you can go for a no deposit home loan, e.g. gifted deposit, guarantor, etc. Here’s a link to the calculator:
https://www.homeloanexperts.com.au/no-deposit-home-loans/no-deposit-loan-calculator/

• McLaurin

I got an LVR of over 90% and so LMI will likely be a lot. I’m a professional entertainer so can I avoid LMI even though my income is a bit inconsistent when you look at it monthly?

• Helo McLaurin,

As a general rule, banks will only consider professionals that have an accredited manager, agent or accountant. You’ll also have to be typically earning at least \$150k a year. You can only avoid LMI if you’re borrowing at 90% though. You can check out the home loan for entertainment professionals page to learn more:
https://www.homeloanexperts.com.au/unusual-employment-loans/home-loan-entertainment-professionals/

• geo

Do I need to pay LMI if I borrow 80% on a low doc loan?

• Hi, banks are more conservative with low doc loans as they are more risky than standard, full doc loans. So if you’re getting a low doc loan then you’re required to pay LMI if you’re borrowing more than 60% LVR.

• gosling

Hi, is there a 97% home loan too without guarantor?

• Hi gosling,

There are only a few lenders that will approve 97% home loans, which is essentially a 95% home loan with the cost of Lenders Mortgage Insurance (LMI) added on top of your mortgage, which can save you thousands in upfront costs. You will need to build a strong case to qualify for this. Please check out the 97% home loans page to learn more:
https://www.homeloanexperts.com.au/low-deposit-home-loans/97-home-loans/

• Mel

Looking at buying a cat4 rural residential property. Have 20% deposit but have been told i need 30% as a minimum. Can you help with a 20% deposit?

• Troy Kayser

If the buying price of a house + land package 8s 300k is that also considered a valuation ?

• Bizzy

Hi Team, how much can I borrow for a bridging loan? I owe \$400k on my existing property which I’m planning to sell and buy a property around \$600k.

• Hi Bizzy,
There are a few lenders that offer this type of bridging loans and they don’t require you to pay Lenders Mortgage Insurance (LMI), which is a one off premium charged when borrowing over 80% of the property value.
In your situation, you may also borrow up to 80% of the peak debt. Peak debt is the purchase price of the new property plus your current mortgage.
Please note that bridging loans can be full of pitfalls, like not being able to sell the existing property, overestimation of the sale price and more. So, please refer to this page https://www.homeloanexperts.com.au/home-loan-types/bridging-loans/ about bridging loans for more information. Alternatively, you can call us on 1300 889 743 to find out how you can apply for a bridging loan.