The Finance Algorithm

LVR Calculator

Calculate your Loan-to-Value Ratio and understand how lenders assess your risk

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$800k

Purchase price (lenders use the lower of price vs valuation)

$
$640k

How much you plan to borrow: the rest is your deposit

The button asks our AI to explain these figures in words.

Your LVR results

Loan-to-value ratio

80.0%

Risk tier

Standard

Your equity

$160,000

20.0% of value

At 80.0% you sit in the standard tier

The needle moves live as you drag the property value or loan amount sliders.

80.0%Standard
  • ≤ 60%Low
  • 60–80%Standard
  • 80–90%High
  • 90–100%Very High

How much of the property is yours vs the bank's

Property value: $800,000.

$800,000property value
Your equity20.0%
Loan80.0%

Where you sit against the rate bands and the LMI line

The rate scanner compares lenders' published rates at these LVRs; LMI applies above 80%. Green rungs are above your LVR, red ones below it.

  • Cleared
  • Your level
  • Still above
60%60%70%70%80%80%85%85%90%90%95%95%

What ±$20k or ±$50k of deposit does to your LVR

Property value held constant: only deposit (and therefore loan) changes.

86.3%-$50kHigh82.5%-$20kHigh80.0%CurrentStandard77.5%+$20kStandard73.8%+$50kStandard

Cash needed to reach a lower LVR

Extra deposit on top of what you already have, holding the property price constant.

To reach 80% LVR

Already there

no extra needed

To reach 75% LVR

+$40,000

extra deposit

To reach 70% LVR

+$80,000

extra deposit

How it works

Your loan-to-value ratio is the loan as a share of the property's value, and it's one of the first things a lender looks at. Above 80% you'll usually pay lenders mortgage insurance, and the rate you're offered often depends on which LVR band you're in. Put in the price and your deposit to see where you sit.

  1. 1Enter the property value (purchase price or valuation)
  2. 2Enter the loan amount you need
  3. 3See your LVR and risk tier instantly
  4. 4See whether your LVR means lenders mortgage insurance

The figures today

As of 7 November 2026, the lowest variable home loan rate is 5.93%, from SCCU's BROKER HOME LOAN, while the typical best across 104 institutions is 6.38%. The lowest 3-year fixed home loan rate is 6.24%, from Credit Union SA's 3-Year Fixed 40 Year Home Loan Package, while the typical best across 80 institutions is 6.69%. The RBA cash rate is 4.85%. Those are for an owner-occupier paying principal and interest at an 80% LVR.

Home loan rates todayWho passed on the last RBA move

Worked examples

First Home Buyer Hitting 80%

Alex has saved $120,000 for a $600,000 apartment. Borrowing $480,000 gives exactly 80% LVR.

Property value
$600,000
Loan amount
$480,000

LVR of exactly 80% means no LMI required. However, stamp duty and fees may push total costs higher - ensure you have a buffer.

High LVR First Home Buyer

Jordan wants to buy an $800,000 house with only 10% deposit ($80,000), borrowing $720,000.

Property value
$800,000
Loan amount
$720,000

At 90% LVR the lender will charge LMI, priced by its insurer - the LMI calculator works it out from a quote. Another $80,000 of deposit would bring the LVR to 80%, or the First Home Guarantee avoids LMI on a 5% deposit if the home is under its price cap.

Questions people ask

What is a good LVR for a home loan?
An LVR of 80% or below is considered ideal as it means you won't need to pay Lenders Mortgage Insurance (LMI). Many lenders will lend up to 95% LVR with LMI.
How can I reduce my LVR?
You can reduce your LVR by saving a larger deposit, using a guarantor, accessing government schemes like the First Home Guarantee, or buying a less expensive property.
Does LVR affect my interest rate?
Yes. Many lenders offer better rates for lower LVRs. You might get a 0.1-0.3% better rate at 70% LVR compared to 80%, and significantly better rates compared to 90%+ LVR.

The terms, in plain English

LVR (Loan to Value Ratio)
The percentage of a property's value you're borrowing. Calculated as: Loan Amount ÷ Property Value × 100.
LMI (Lenders Mortgage Insurance)
Insurance required when borrowing more than 80% of a property's value. It protects the lender if you default.
Risk Tier
Lenders categorize loans by LVR into risk bands (e.g., 0-60%, 60-80%, 80-90%). Higher tiers attract higher rates.
Valuation
The bank's independent assessment of property value, which may differ from the purchase price. LVR is based on the lower of valuation or purchase price.

Official sources

Calculate Your LMI Cost

Find out exactly how much Lenders Mortgage Insurance will cost for your LVR.

Check Your Repayments

See what your monthly repayments will be based on your loan amount.

Find Your Borrowing Power

Discover how much you could borrow based on your income and expenses.