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Australia LVR Calculator

Work out your loan-to-value ratio, your deposit or equity amount, and which lending tier your result falls into — including whether Lenders Mortgage Insurance is likely required.

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Implies a deposit or equity of $140,000.00.

Loan-to-value ratio (LVR)80.0%
Deposit / equity amount$140,000.00
LMI likely required?No

60–80% LVR — standard, no LMI required

How this calculator works

Loan-to-value ratio (LVR) is one of the most important numbers in Australian home lending. It's simply your loan amount expressed as a percentage of the property's value:

LVR = (loan amount ÷ property value) × 100

The complement of your LVR is your deposit percentage (on a purchase) or equity percentage (on a refinance) — the two always add up to 100%. 80% LVR is the single most important threshold in Australia: at or below it, you generally avoid Lenders Mortgage Insurance; above it, LMI is generally required, up to around 95% LVR, close to most lenders' standard maximum. This calculator shows your exact LVR, your deposit/equity figures, and the tier your result falls into.

Worked example

Say you're buying a property valued at $700,000 with a $560,000 loan. Your LVR is exactly 80% ($560,000 ÷ $700,000), meaning your deposit makes up the remaining 20%, or $140,000 — right at the LMI threshold, so no Lenders Mortgage Insurance is required. By contrast, a $630,000 loan on the same $700,000 property gives a 90% LVR, with a $70,000 (10%) deposit — comfortably within standard lending limits, but requiring LMI since it's above 80%.

What affects your result

  • Deposit size — the biggest lever on a purchase; crossing 80% LVR specifically avoids Lenders Mortgage Insurance entirely.
  • Property valuation — on a refinance, your LVR depends on the lender's current valuation of your property, not necessarily what you paid for it.
  • Loan balance paid down — every principal repayment reduces your loan amount and therefore your LVR over time, gradually moving you toward or below the 80% threshold even without extra repayments.
  • Extra repayments — a lump-sum or extra monthly repayment can be a deliberate strategy to cross the 80% threshold ahead of a refinance or to remove the need for LMI.

A note on accuracy

The LVR tiers shown reflect commonly-referenced Australian lending thresholds (60/80/90/95%), not a specific lender's pricing criteria, which can vary. This calculator does not factor in valuation fees, application fees, or a lender's specific risk appetite. For guidance on LVR and LMI, see Moneysmart — Lenders Mortgage Insurance.

Frequently asked questions

What is my loan-to-value ratio (LVR) in Australia?

Your LVR is your loan amount expressed as a percentage of your property's value. A $560,000 loan on a $700,000 property is an 80% LVR, meaning your deposit or equity makes up the remaining 20% ($140,000). Enter your figures into the calculator above to see your exact LVR and which tier it falls into.

Why is 80% LVR such an important number in Australia?

80% LVR is the key threshold in Australian home lending: at or below it, you generally avoid Lenders Mortgage Insurance (LMI) entirely. Above 80% LVR (a deposit below 20%), LMI is generally required — see our LMI Calculator to estimate that premium. Most lenders also treat 95% LVR as close to their standard maximum for owner-occupier lending.

How do I calculate LVR?

Divide your loan amount by the property value, then multiply by 100 to get a percentage: LVR = (loan amount ÷ property value) × 100. For a purchase, use the purchase price (or a valuation, if different) as the property value; for a refinance, use a recent valuation of your current property and your outstanding loan balance.

Does a lower LVR get me a better interest rate in Australia?

Often, yes — many Australian lenders price their home loan rates in LVR-based tiers (for example, better rates below 80%, or below 60%), since a lower LVR represents lower risk to the lender. Crossing below 80% LVR specifically also avoids LMI, which is itself a real cost saving on top of any rate benefit.

What happens if my LVR is above 95%?

A loan above 95% LVR (less than 5% deposit) exceeds most Australian lenders' standard maximum and typically isn't obtainable through mainstream lending channels, other than via specific government-backed schemes (like the First Home Guarantee, for eligible buyers, subject to place availability) or a family guarantor arrangement. This calculator flags this tier clearly since it sits outside standard lending limits.

How is LVR different from my deposit percentage?

They're two sides of the same coin: your deposit (or equity, if refinancing) percentage plus your LVR always add up to 100%. An 80% LVR loan means a 20% deposit; a 90% LVR loan means a 10% deposit. Lenders and loan documents often quote LVR directly, so it's worth getting comfortable converting between the two.

Related calculators

LMI CalculatorSee whether your LVR requires Lenders Mortgage Insurance, and estimate the premium.Mortgage Repayment CalculatorSee your monthly repayment once you know your loan amount.Refinance CalculatorCompare deals once you know your current LVR.

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