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LVR Calculator

LVR Calculator

Loan details

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Loan details

What is your LVR?

The Loan to Value Ratio/Loan to Valuation Ratio (LVR) of your loan is the percentage of the property value that you are 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 cannot 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.

Example calculation

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 by the lender, so they would require Lenders Mortgage Insurance.

How does my LVR effect my loan?

The policy used by the lender will change depending on the LVR of your loan. If you are borrowing 80% LVR or less then the lender may make exceptions to their normal lending policy. However if you are borrowing above 80% LVR, you will find that lenders are less willing to make exceptions, ask for more documents and assess your loan in a conservative way. You can read the pages below for more information on applying for a high LVR home loan:

Learn more about LVR

You can learn more on our LVR page.