How do you calculate LVR?

LVR = loan amount ÷ property value × 100. If you borrow $640,000 against an $800,000 property, your LVR is 80%.

What is a good LVR in Australia?

80% or below is the benchmark — at or under 80% you generally avoid Lenders Mortgage Insurance and qualify for a lender's sharpest advertised rates. Between 80% and 90% LMI applies but pricing is still competitive; above 90% both LMI and rate loadings increase.

Does the lender use the purchase price or the valuation?

Lenders use the lower of the contract price and their own valuation. If a bank values the property below what you paid, your LVR rises and you may need a larger deposit or pay more LMI.

What LVR do I need to refinance?

Most lenders will refinance up to 80% LVR without LMI, and many will go to 90% with LMI. If your property has grown in value since purchase, your LVR may already be lower than you think.

Can I borrow at 95% LVR?

Yes, some lenders allow 95% LVR (plus capitalised LMI) for strong applicants, and eligible first home buyers can reach 95% LVR with no LMI under the First Home Guarantee.

LVR Calculator

Calculate your loan-to-value ratio (LVR) in seconds. Your LVR drives whether you pay Lenders Mortgage Insurance, which lenders will approve you, and what interest rate you're offered.

Part of our refinancing guide — the full walkthrough, articles and client case studies for this topic.

Property value

Loan amount

That's a 20.0% deposit ($160,000)

Your LVR

80.0%

Deposit / equity

$160,000

Deposit %

20.0%

Estimated LMI

$0 — no LMI

To reach 80% LVR

Already there

80% or below — no LMI, and you're eligible for most lenders' best advertised rates.

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Book with these numbers

Why LVR matters more than almost any other number

Lenders price risk. The more of the property you own outright, the less risk they carry — so the lower your LVR, the better your rate and the wider your choice of lenders. Crossing under 80% is the single biggest step, because it removes Lenders Mortgage Insurance entirely.

LVR bands and what they mean

Up to 60% LVR — premium pricing tiers; some lenders reserve their lowest rates for this band.
60–80% LVR — no LMI, full access to best-rate products.
80–90% LVR — LMI applies and rises quickly with each percentage point.
90–95% LVR — high LMI, tighter policy, stronger income and savings evidence required.
95%+ LVR — generally only via the First Home Guarantee or a family guarantor.

Three ways to lower your LVR

Add to your deposit — even a small top-up can cross an LMI pricing band.
Buy slightly cheaper, or negotiate the price down.
Use a guarantor, so a family member's equity supplements yours.

Key terms explained

The main terms used in this calculator and its results.

Appraisal / Valuation: A lender's assessment of a property's market value, used to confirm how much it will lend against the property.
Deposit: The upfront portion of a property's price you pay yourself, with the remainder funded by your home loan.
Equity: The difference between your property's market value and the amount you still owe on your loan.
Lenders Mortgage Insurance (LMI): A one-off premium that protects the lender (not you) if you default, typically required when borrowing more than 80% of the property value.
Loan-to-Value Ratio (LVR): Your loan amount expressed as a percentage of the property's value. A lower LVR generally means better rates and no LMI.
Usable Equity: The portion of your equity a lender will normally release — typically 80% of the property's value less your current loan balance.

View the full mortgage glossary

Frequently asked questions

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