LVR stands for loan-to-value ratio. It is the size of your loan expressed as a percentage of the property value: loan ÷ property value × 100. Borrow $600,000 against an $750,000 property and your LVR is 80%. It is the single number that decides whether lenders mortgage insurance applies, which lenders will consider your file, and how much equity you can release later.

How do I calculate LVR?

Divide the loan amount by the property value and multiply by 100. If you know your deposit instead of the loan, subtract the deposit from the property value first — a $750,000 purchase with a $150,000 deposit means a $600,000 loan, which is 80% LVR. The calculator above does it both ways.

What LVR do I need to avoid LMI?

Generally 80% or below, which means a deposit of at least 20% of the property value. Above 80%, lenders mortgage insurance almost always applies, and the premium climbs steeply as LVR rises through 85%, 90% and 95%. Some professions — medical, legal and accounting among them — can access waivers at higher LVRs, and government guarantee schemes can remove LMI at much smaller deposits.

Is LVR based on the purchase price or the valuation?

The lender uses its own valuation, and where the property is being purchased it generally takes the lower of the valuation and the contract price. This matters: if you pay $780,000 but the bank values the property at $750,000, your LVR is calculated on $750,000. A valuation shortfall is one of the most common reasons an approved deposit suddenly is not enough.

Does stamp duty count towards my deposit for LVR?

No. LVR only compares the loan to the property value. Stamp duty, conveyancing, building and pest inspections and lender fees sit on top and must be funded separately. Spending part of your savings on those costs reduces the deposit available, which raises your LVR — so budget for them before assuming you are at 80%.

80% or below is the position most borrowers aim for, because it removes LMI and opens the full lender panel. Below 60% some lenders offer their sharpest pricing tiers. That said, a higher LVR is not automatically a bad decision — paying LMI to buy sooner can work out ahead of saving for another two years in a rising market. It depends on your timeline and the numbers, not on a rule.

How much equity can I access with my LVR?

Usable equity is normally the difference between 80% of the property value and what you still owe — not the full value minus your loan. On a $900,000 property with $400,000 owing, total equity is $500,000 but usable equity is about $320,000, because the lender will generally only go to $720,000 without LMI. Switch the calculator to "I already own it" to see your figure.

Does LVR affect my interest rate?

Often, yes. Many lenders price in LVR tiers, with lower rates at 60%, 70% and 80% thresholds and loadings above them. The gap between an 89% LVR and an 80% LVR can be both an LMI premium and a higher ongoing rate, which is why dropping under a threshold is sometimes worth more than it first appears.

Can I get a home loan with a 95% LVR?

It is possible with a 5% deposit, but it sits at the top of standard lending. Expect LMI at its most expensive, tighter policy on credit history and expenses, and genuine savings requirements at many lenders. Government guarantee schemes and family guarantors are the two common routes to a high LVR without the full LMI cost.

What happens to LVR as I pay down the loan?

It falls as the balance reduces, and falls faster if the property appreciates. This matters for refinancing: once you cross back under 80%, you can usually refinance without LMI and access sharper pricing. Borrowers who paid LMI at purchase often reach that point sooner than they expect and never re-check.

Is this LVR calculator free, and is my information stored?

It is free with no sign-up, and the calculation runs entirely in your browser — nothing you type is sent to us or stored. Only the details you deliberately enter into an enquiry form reach Azure Home Loans.

Azure Home Loans

LVR calculator — loan to value ratio

Work out your loan-to-value ratio in seconds. Enter a property value and either your deposit or your current loan balance, and see whether LMI applies, how far you are from 80%, and how much equity you can actually use.

Free · no sign-up · nothing leaves your browser · ACR 538895, auth. under ACL 390261 · General information, not credit advice.

LVR calculator — your loan-to-value ratio

Enter a property value and either your deposit or your current loan. LVR updates instantly, with the deposit needed to clear 80% and avoid LMI.

I'm buyingI already own it

Property price

Your deposit

Deposit only — stamp duty and other purchase costs sit on top and do not reduce LVR.

Your LVR

85.0%

80.01% to 85%

LMI applies, but the premium is at its mildest here. Some professions qualify for a waiver at this level.

0%80% — LMI line100%

Loan amount: $637,500
Deposit: 15.0%
LMI likely: Yes

Another $37,500 of deposit — $150,000 in total — would put you at 80% and remove LMI entirely.

Estimate the LMI premium at your deposit →

LVR is calculated on the lender's valuation, not the price you paid or an online estimate. A valuation below expectation raises LVR and can trigger LMI that was not in the plan.

General information only. These calculators provide estimates based on the numbers you enter. They do not constitute credit advice, take your full situation into account, or replace a lender's assessment. Fees, eligibility, and actual offers vary. Speak with a broker for guidance tailored to you.

What each LVR band means

Lender policy and pricing change at thresholds, not smoothly. Sitting just above one is expensive; a small extra deposit that drops you under it is often the highest-return move available.

Loan-to-value ratio bands and what they mean for Australian borrowers
LVR band	LMI	What it means
60% or below	Not required	The strongest position. Some lenders reserve their sharpest pricing tiers for this band, and equity release is straightforward.
60.01% to 70%	Not required	Comfortably inside every mainstream lender’s appetite. No LMI, and a decent buffer if the valuation comes in under expectation.
70.01% to 80%	Not required	The classic 20% deposit position. No LMI, full lender choice, and the benchmark most rate comparisons assume.
80.01% to 85%	Likely	LMI applies, but the premium is at its mildest here. Some professions qualify for a waiver at this level.
85.01% to 90%	Likely	LMI rises sharply through this band. Lender choice narrows and the file is read more closely.
90.01% to 95%	Likely	The top of standard lending. LMI is at its most expensive, policy is tightest, and genuine savings requirements usually apply.
Above 95%	Likely	Outside standard lending. Generally needs a government guarantee scheme, a family guarantor, or capitalised LMI pushing the loan above the property value.

Deposit needed at each LVR

Deposit only. Stamp duty, conveyancing and inspections sit on top of every figure below and do not reduce your LVR.

Deposit and loan amount required at each loan-to-value ratio, by property price
Property price	95% LVR	90% LVR	85% LVR	80% LVR	70% LVR	60% LVR
$500,000	$25,000	$50,000	$75,000	$100,000	$150,000	$200,000
$650,000	$32,500	$65,000	$97,500	$130,000	$195,000	$260,000
$750,000	$37,500	$75,000	$112,500	$150,000	$225,000	$300,000
$900,000	$45,000	$90,000	$135,000	$180,000	$270,000	$360,000
$1,200,000	$60,000	$120,000	$180,000	$240,000	$360,000	$480,000

Bold figures are at or under 80% — the deposit level where LMI drops away.

How to calculate LVR

Enter the property valueUse the purchase price, or for a property you already own, a realistic current value. Lenders use their own valuation and generally take the lower of valuation and contract price.
Enter your deposit or loan balanceIf you are buying, enter the deposit you have saved. If you already own the property, switch to "I already own it" and enter what you still owe.
Read your LVR and bandThe calculator divides the loan by the property value. At or below 80% no LMI applies; above it, the premium rises as LVR climbs through 85%, 90% and 95%.
Check the deposit needed to clear 80%If you are above the line, the calculator shows the extra deposit required to reach 80% and remove LMI, plus the smaller step to the next band down.

The formula: LVR = loan amount ÷ property value × 100. A $600,000 loan on a $750,000 property is 600,000 ÷ 750,000 × 100 = 80%.

Once you know your LVR

LVR sets the boundaries. These tools work out what it costs and what you can borrow inside them.

LMI calculator
Estimate the premium at your exact deposit, and what a bigger one saves.
Borrowing power calculator
Turn income and commitments into an indicative lending figure.
Repayment calculator
What the loan actually costs each month at your LVR.
How much deposit do you need?
The full picture including stamp duty and the costs beyond the deposit.
Net worth calculator
Track equity as the loan falls and the property moves.
First home buyer guide
Schemes that let you buy at a high LVR without the full LMI cost.

LVR — frequently asked questions

Not sure which side of the LMI line you'll land on?

Valuations, scheme places and professional waivers all move the number. Bishnu Adhikari can tell you where your file actually sits across lenders before you commit to a purchase price.

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