About the LVR Calculator
Loan-to-value ratio (LVR) is the loan amount expressed as a percentage of the property's value, and it's one of the key numbers lenders use to assess a home loan application. This calculator works out your LVR and flags whether you're likely to need lenders mortgage insurance (LMI).
How it works
- LVR is calculated as the loan amount divided by the property value, expressed as a percentage.
- Most Australian lenders consider an LVR above 80% to carry more risk, and typically require lenders mortgage insurance (LMI) to approve the loan.
- An LVR of 80% or below generally doesn't require LMI, though individual lender policies vary.
Assumptions and behaviour
- Uses the 80% threshold as the general industry guideline for when LMI typically applies — this is the most common cut-off used by Australian lenders.
- Assumes the property value entered reflects the lender's valuation (or purchase price) rather than an owner's own estimate, since lenders base LVR on their own assessment.
- Doesn't calculate the actual LMI premium — for an estimate of the LMI cost itself, use the Lenders Mortgage Insurance Calculator.
Limitations
- Individual lenders may apply different LVR thresholds, exemptions (e.g. for medical professionals or via a guarantor), or LMI waivers.
- Doesn't factor in genuine savings requirements, serviceability, or other approval criteria beyond LVR.
- This is general information only, not financial advice — confirm LMI requirements directly with your lender or broker.
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
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