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Last Updated: 31st January, 2024

We've just introduced the innovative 360° Home Loan Assessor. Empower your home-buying decision with our new tool. Get started today

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We Have More Calculators To Help You With Your Situation.


How To Use The LVR Calculator

The LVR calculator is a simple tool that can help you understand your Loan-to-Value Ratio. The calculator asks for two pieces of information:

  • 1. Property value: The current market value of the property you are buying.
  • 2. Loan amount: The amount of money you are borrowing from the lender.

Once you have entered this information, the calculator will determine your LVR, and the result will be displayed in blue.

Click on the orange “Find Out How” button if you would like us to help you with your mortgage.

Enter your email address if you want a copy of your result.

Why Use The LVR Calculator?

The LVR calculator is a useful tool to help you understand your financial situation and to compare different loan options. Here are some of the benefits of using the LVR calculator:
  • It is free.
  • It provides immediate results. With just a few inputs, you can quickly grasp the percentage of the property’s value that will be financing through a loan.
  • It shows you whether your LVR exceeds the threshold requiring Lenders Mortgage Insurance. This is important to know, as LMI can affect your upfront costs and ongoing mortgage payments.
  • It can help you evaluate your risk profile and take measures to reduce it, potentially leading to better loan terms and interest rates.
It is important to note that the LVR calculator is only a rough estimate. Your actual LVR may be different depending on the lender’s criteria.

The 360° Home Loan Assessor simplifies the process, allowing you to estimate your LVR effortlessly and gain insights into your financial position.

What is LVR?

The Loan-to-Value 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 if you can’t repay your loan.

An LVR of 100% is a very high risk, whereas an LVR of 80% or less is considered 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!


How To Calculate LVR

How to calculate LVR

If you borrow $900,000 against a property valued at $1,000,000, then what would your LVR be?

Loan amount: $900,000

Property value: $1,000,000

LVR calculation: 900,000 / 1,000,000 = 90% LVR

This would be considered high-risk LVR by the lender, so they would require LMI for your loan.


Examples Of LVR Calculations in Different Scenarios

How Will LVR Affect My Home Loan?

Your LVR will affect your home loan in a few ways.
  • Lenders typically charge higher interest rates on loans with higher LVRs. This is because they are considered to be riskier loans.
  • If your LVR is higher, you may have less flexibility with your home loan. For example, you may not be able to make extra repayments or refinance your loan as easily.
  • If your LVR is higher, you are more at risk of being “underwater” on your mortgage. This means you owe more on your loan than the property is worth. You could be in a difficult financial situation.

You can learn more on our LVR page.

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