LVR Calculator

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What is your LVR?

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:

You can learn more on our LVR page.

  • Christa Thompson

    Hi Team
    My partner and I are looking at purchasing a property in SA for $550,000. We both have previously owned properties but relationship breakdowns left us in debt which lead to a Part 9 and bankruptcy. We have both been discharged from them now, but are struggling to find lenders who will lend to us. We have been renting for the last 4 years and earn at joint income of $135,000 per annum. As well as receiving a $300/wk dividend from our business. With renting and establishing our business we only have savings of $15,000 at the moment. What options do we have? Would a personal loan be a better option to raise the remaining deposit? Are we able to buy a block of land and than build once we have the remaining saved? Do you have construction loans available where no repayments are due until construction is complete?

  • Hi Christa,
    Yes you can qualify for a loan however your deposit size is the issue. You can borrow up to 95% including LMI and you can read more about this on our discharged bankruptcy page
    To allow for costs such as stamp duty and the cost of LMI you’d be looking at a deposit of approx 12% of the purchase price to make it work. So that’s around $65,000. I’d strongly recommend that you avoid building as this will complicate things if you have a bad credit history and reduce the choice in lenders significantly.

  • Christa Thompson

    Thank you :)
    Would a personal loan be an option for the remaining amount? Also, can our rental history be taken into consideration in regards to a portion of the deposit? Otherwise would guarantor be an option?

  • The personal loan would be too big and it’s difficult to get a personal loan if you have an adverse credit history. If you save a minimum of 5% then a personal loan could be used to make up the rest as long as one of you had clear credit and could apply for a personal loan in that person’s name.
    A rental history shows character so it allows your deposit to come from a source other than your own savings e.g. a gift from parents / family. However you still need the deposit.

  • Samuel

    Hey Home Loan Experts,

    I am a Part-time teacher on 90k a year for three years in a row, my wife finished university last year and is working several casual positions earning $1500 a fortnight. We have %10 deposit saved. We have an excellent credit history with no current debts. Will we qualify for a home loan without a guarantor?

  • Hi Samuel,
    Looking at your details (10% deposit, excellent credit history and no debts), you seem to qualify for a home loan without a guarantor but we need to assess your situation further and confirm.
    Call us on 1300 889 743 or fill our online enquiry form and discover how we can help you obtain a mortgage.

  • Reuben

    Hi, just wondering if you could please explain what ‘Insured LVR’ means?

  • Hi Reuben,
    Lenders consider it risky when lending above 80% of the property value so they take out Lenders Mortgage Insurance (LMI) to protect themselves against unforeseen losses. So generally, anything above 80% is considered insured LVR. The LMI fee is passed on to the borrower.

  • Cian

    Hi, if we own a home that we still owe $350k on, and the home is valued at $420k, can we use that $70k in equity to purchase a new home despite technically, only owning around 18%?

  • Hi Cian,
    Ideally, to release equity, it is better to borrow (release equity) up to 80% of the property value so, you don’t have to pay Lenders Mortgage Insurance (LMI). In your case, the Loan to Value Ratio (LVR) is already above 80% (83.3%) so, it might be difficult for you to release equity from your property to purchase a new one. Having said this, borrowing over 80% with up to a maximum of 95% is still available however, most lenders will not agree to this.