LVR (Loan to Value Ratio) Calculator
Work out your loan-to-value ratio and whether it's likely to trigger LMI.
- LMI likely required
- No — LVR is 80% or under
This calculator provides estimates only. It is general information, not financial or taxation advice, and doesn't account for your full personal circumstances. Confirm figures with your lender or a licensed adviser before making a decision.
Put this calculator on your own website
Embed it as a lead magnet and capture visitor emails.
How this calculator works
Loan to value ratio (LVR) is your loan amount expressed as a percentage of the property's value — it's one of the first things a lender looks at, because it tells them how much of a buffer they have if they ever needed to sell the property to recover the loan.
Enter your loan amount and the property's value (purchase price, or a recent valuation) to see your LVR. It's a simple ratio: loan ÷ property value × 100.
Worked example: a $560,000 loan against a $700,000 property gives an LVR of exactly 80% ($560,000 ÷ $700,000 × 100).
LVR above 80% commonly triggers Lenders Mortgage Insurance (LMI), a one-off premium that protects the lender (not you) if you default and the property doesn't cover the loan. Staying at or under 80% LVR — usually by saving a 20% deposit — avoids LMI altogether, though some lenders and loan types have different thresholds. This calculator flags whether you're likely above that common threshold; it doesn't calculate the LMI premium itself, since that depends on the insurer's own rate tables.
Frequently asked questions
- Is 80% LVR a hard rule?
- 80% is the most common threshold lenders use before requiring LMI, but it varies — some lenders apply LMI from a lower threshold for certain property types, and some loans (like specific professional packages) waive it at higher LVRs. Check with your specific lender.
- Does LVR use the purchase price or a valuation?
- Lenders generally use the lower of the purchase price and their own valuation of the property, which can differ from what you agreed to pay — so your effective LVR isn't always exactly what you calculated off the purchase price alone.
- Why doesn't this calculate my LMI premium?
- LMI premiums come from individual mortgage insurers' own rate tables, which vary by insurer, LVR band, loan size and loan purpose — outside the scope of a general LVR calculator. Your lender can quote the exact premium.