LVR Calculator Australia
Loan to value ratio, and the deposit needed to reach a target LVR you choose. No lenders mortgage insurance premium is quoted, because there is no public rate table to quote from.
Your numbers
Example value chosen by Virtual Buyers Agent. Change it to your own figure.
Example value chosen by Virtual Buyers Agent. Change it to your own figure.
0%–100%. A loan cannot exceed what the property is worth, so 100% is the arithmetic ceiling. The 80% many lenders price around is not marked on this track.
Example value chosen by Virtual Buyers Agent. Change it to your own figure.
The ratio you want to test. This page does not recommend one.
Result
Loan divided by property value
Property value less deposit
Your deposit already reaches this target
How each figure was worked out3 formulas, shown in full
| Figure | Formula | With your numbers | Result |
|---|---|---|---|
| Loan amount | property value − deposit | $600,000 − $120,000 | $480,000 |
| Loan to value ratio | loan amount ÷ property value × 100 | $480,000 ÷ $600,000 × 100 | 80.0% |
| Deposit for your target LVR | property value × (1 − target LVR) | $600,000 × (1 − 80%) | $120,000 |
How this works
Loan to value ratio is division: what you borrow, over what the property is worth. This page does that division and nothing else.
General information only — not financial, legal, tax, or investment advice. Virtual Buyers Agent does not hold an AFSL or a real estate licence. Consider your circumstances and seek professional advice before acting.
Inputs, assumptions and limits13 points, shown in full
Inputs used
- Property value: $600,000
- Deposit: $120,000
- Target LVR: 80%
Assumptions
- Property value is the figure you entered. A lender uses its own valuation, which can be lower than the price you pay — and a lower valuation raises your LVR.
- Deposit is treated as cash applied to the purchase price. Upfront costs such as duty and legals are not deducted from it here.
- The target LVR is yours. This page does not recommend one.
Limits of this result
- No lenders mortgage insurance premium is shown. LMI is priced by the insurer against the lender’s own scale, and there is no public rate table to read. Any dollar figure we printed would be invented, so we print none. Ask your lender or broker for a quote.
- Whether LMI applies at all, and at what LVR, is lender policy and varies by lender, loan purpose and borrower. This page does not assert a threshold.
- Says nothing about whether a lender will approve the loan. Serviceability, income, credit history and lender policy are not assessed here.
- A figure shown as — could not be calculated from what you entered. It is not zero.
Where the numbers come from
- Your entries — Live — This page holds no rate table, no lender policy and no market data.
Check before acting
- Ask your lender or broker for an LMI quote at the LVR you are actually considering.
- Ask what valuation the lender will use — not the contract price — because that is the number your LVR is assessed on.
What LVR is
Loan to value ratio is the loan amount divided by the property value, expressed as a percentage. Borrowing $480,000 against a $600,000 property is an LVR of 80%.
Lenders use it as a measure of their own exposure: the lower the ratio, the larger the equity buffer between the loan and the value of the security.
Why no LMI figure is shown
Lenders mortgage insurance is a premium paid to an insurer, priced against the individual lender’s scale and the insurer’s assessment. There is no published rate table to read.
The version of this page that came before quoted a premium anyway, from a schedule Virtual Buyers Agent had invented, alongside prose ranges that were equally unsourced. Replacing one invented schedule with another would not have fixed it. A lender or broker can quote you the real premium at the LVR you are actually considering — that is a five-minute question with a correct answer.
Whether LMI applies at all, and above what LVR, is lender policy and varies. This page asserts no threshold and recommends no target; you enter the target you want to test.
The value the lender uses may not be the price you pay
LVR is assessed against the lender’s valuation, which can come in below the contract price. When it does, the LVR rises even though your deposit has not changed, which can move a loan across a policy threshold.
Your deposit also has to cover more than the gap between price and loan. Transfer duty, legal fees and inspections are paid from the same cash — the Stamp Duty Calculator estimates the largest of those.
Frequently asked questions
Related calculators
Check before you offer.
A calculator checks the arithmetic. Virtual Buyers Agent is a guided workspace for checking the rest — Summary, Financials, Location, Documents and Offer — with the source, assumptions and limits shown on every figure.
Free plan: 3 properties per month. No credit card required.
General information only — not financial, legal, tax, or investment advice. Virtual Buyers Agent does not hold an AFSL or a real estate licence. Consider your circumstances and seek professional advice before acting.