Free Tool

LVR Calculator

Your loan-to-value ratio — the loan as a percentage of the property's value — drives your interest rate tier and whether lenders mortgage insurance applies. Know your number before you negotiate anything.

Property value$750,000

$100k$3M

Loan amount$560,000

$50k$3M

Your LVR

74.7%

LMI likely?No (80% or below)

Deposit / equity$190,000

Loan at exactly 80%$600,000

At or below 80% LVR you generally avoid LMI and access better rate tiers.

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FAQs

Good to know

What is a good LVR?

80% or below avoids LMI and unlocks better rate tiers at most lenders; 60-70% often gets the sharpest pricing of all. Above 80% is workable but adds LMI cost.

What LVR triggers lenders mortgage insurance?

Generally above 80% for standard loans (above 70-80% for some property types and low-doc lending). Guarantees and profession waivers can avoid LMI at higher LVRs.

Which value is used - purchase price or valuation?

For purchases, lenders typically use the lower of price and valuation. For refinances, the lender's valuation decides - and valuations differ between lenders, which we use to your advantage.

How do I lower my LVR?

Bigger deposit, cheaper property, paying down the loan, or — over time — property growth. On refinances, choosing the lender whose valuer sees your property most favourably can drop your LVR band instantly.

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