How to use the LVR Calculator
- 1 Enter the property price or valuation.
- 2 Enter your deposit.
- 3 Read your loan amount and LVR.
- 4 Check the deposit needed to reach 80% LVR and avoid LMI.
Worked example
An $800,000 property with a $100,000 deposit. The loan is $700,000, giving an LVR of 87.5%, so lenders mortgage insurance is likely. A 20% deposit of $160,000 would bring the LVR to 80%, which means saving $60,000 more.
Features
LVR instantly
Loan divided by property value as a percentage.
LMI warning
Flags when your LVR is above 80%.
Deposit targets
Deposits for 80%, 90% and 95% LVR.
When to use it
Saving a deposit
Set a target for a 20% deposit.
First home buyers
See how far you are from 95% LVR under the Home Guarantee Scheme.
Refinancing
Check your LVR after a valuation.
Comparing properties
See how price changes your LVR.
Frequently asked questions
What is LVR?
The loan-to-value ratio is the loan amount divided by the property value. A $700,000 loan on an $800,000 property is an 87.5% LVR.
Why does 80% matter?
Most lenders charge lenders mortgage insurance when the LVR is above 80%. LMI protects the lender, not you, and can cost thousands.
Can I buy with a 5% deposit?
Yes. Some lenders accept 5%, usually with LMI. Eligible first home buyers may use the Home Guarantee Scheme to avoid LMI with a 5% deposit.
Do lenders use the price or valuation?
Lenders use the lower of the purchase price and their own valuation.
Does LVR affect my interest rate?
Often yes. Many lenders offer lower rates to borrowers with an LVR of 80% or less, and even lower at 60% or 70%.
Are buying costs included?
No. Stamp duty, legal fees and inspections are paid on top, so you need savings beyond the deposit.
What LVR do investors need?
Many lenders allow investors up to 90% LVR with LMI, but some limit investment loans to 80%. Interest-only loans often need a lower LVR.
How do I lower my LVR?
Save a bigger deposit, buy a cheaper property, use a guarantor, or for existing loans make extra repayments or get an updated valuation.
How much does LMI cost?
It depends on the loan size and LVR. It can be a few thousand dollars at 85% LVR and tens of thousands at 95% on a large loan. It can often be added to the loan.
Can a guarantor help?
Yes. A family guarantee uses equity in a family member's property as extra security, which can avoid LMI with a small deposit.
Does LVR matter after I buy?
Yes. As you repay the loan and the property grows in value, your LVR falls, which can help you refinance to a better rate.
Are there exemptions for some jobs?
Some lenders waive LMI at up to 90% LVR for professions such as doctors, lawyers and accountants. Ask lenders about their policies.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated