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). However, most lenders will approve loans up to 95% LVR with appropriate 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.

§ Tool · tier 1 · independent

LVR Calculator.

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

CalculatorFree, no signupOn-deviceupd May 2026

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Your numbers

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Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

Your Loan-to-Value Ratio (LVR) is one of the most important numbers in your home loan application. It tells lenders how much risk they're taking on. Use our calculator to find your LVR and get AI insights on how lenders will view your application.

§ Worked examples

Real-world scenarios

First Home Buyer Hitting 80%

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

Inputs

propertyValue:600,000loanAmount: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.

Inputs

propertyValue:800,000loanAmount:720,000

90% LVR means LMI of approximately $15,000-$20,000. Consider the First Home Guarantee scheme to avoid this cost.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

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.

§ Pair it with

Related tools

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.

How to use

01Enter the property value (purchase price or valuation)
02Enter the loan amount you need
03See your LVR and risk tier instantly
04Get AI insights on LMI and lender requirements

Key info

LVR below 80% means no Lenders Mortgage Insurance required
LVR 80-90% is considered higher risk but still approved
LVR above 90% attracts higher LMI premiums
Some lenders offer LMI waivers for medical professionals

Pro tips

Aim for 80% LVR or lower to avoid LMI entirely - even a 79.9% LVR means no LMI
If you're close to 80%, consider waiting a few months to save more deposit
A lower LVR often unlocks better interest rates from lenders
Factor in stamp duty and other costs - you need more than just the deposit

Avoid these

Forgetting that LVR is based on the bank's valuation, not the purchase price - banks can value lower
Not realizing stamp duty and fees come from your savings, reducing your effective deposit
Thinking LMI only applies at 80% - it applies above 80%
Ignoring that higher LVR often means higher interest rates, not just LMI costs

Disclaimer: Estimates only. Interest rates, fees and policies change frequently. Always verify with lenders directly. General information, not personal financial advice.

Last updated · May 2026