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LVR Calculator

LVR Calculator

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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’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 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 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.

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.

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.

  • 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/