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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.
Loan divided by property value
ExampleThis result still uses our example figures for property value and your deposit, not yours. Change them to see your own numbers.
Property value less deposit
ExampleThis result still uses our example figures for property value and your deposit, not yours. Change them to see your own numbers.
Your deposit already reaches this target
ExampleThis result still uses our example figures for property value and target lvr, not yours. Change them to see your own numbers.
No lenders mortgage insurance premium is shown. LMI is priced by the insurer against your lender's own scale and there is no public rate table to read, so any figure we printed would be invented. Your lender or broker can quote the real premium at the LVR you are considering.
| 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 |
General information only — not financial, legal, tax, or investment advice. Virtual Buyers Agent does not hold an AFSL or a real estate licence. Check your circumstances with appropriately licensed professionals before acting.
Loan to value ratio is division: what you borrow, over what the property is worth. This page does that division and nothing else.
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.
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.
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.
Loan to value ratio: the loan amount divided by the property value, as a percentage. Borrowing $480,000 against a $600,000 property is an LVR of 80%.
A lenders mortgage insurance premium is priced by the insurer against the individual lender’s scale. There is no public rate table to read, so any dollar figure shown here would be invented. Your lender or broker can quote the real premium at the LVR you are considering.
That is lender policy, and it varies by lender, by loan purpose and by borrower. This page does not assert a threshold or recommend a target — you choose the target LVR you want to test.
Not necessarily. Lenders assess LVR against their own valuation, which can come in below the contract price. A lower valuation raises your LVR even though nothing about your deposit changed.
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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.
General information only — not financial, legal, tax, or investment advice. Virtual Buyers Agent does not hold an AFSL or a real estate licence. Check your circumstances with appropriately licensed professionals before acting.