Australian LVR Calculator
Work out your loan-to-value ratio — LVR from property value and loan amount, and the deposit that reaches common lending thresholds.
AU LVR Calculator
Loan-to-value ratio · LMI threshold · deposit
Loan-to-value ratio
LMI LIKELYYour LVR summary
A plain-English read of the loan-to-value ratio for this property, based on the inputs provided. Lenders Mortgage Insurance (LMI) generally applies when the amount borrowed exceeds 80% of the property value. Source: ASIC MoneySmart ↗
LVR at different deposit sizes
How the LVR changes as the deposit grows, for the property value entered. A deposit of 20% (or more) corresponds to an LVR of 80% (or below), the level at which LMI is generally no longer required.
| Deposit | Deposit (AUD) | Loan (AUD) | LVR | LMI |
|---|---|---|---|---|
| 5% | AUD 40,000 | AUD 760,000 | 95% | Likely |
| 10% | AUD 80,000 | AUD 720,000 | 90% | Likely |
| 15% | AUD 120,000 | AUD 680,000 | 85% | Likely |
| 20% | AUD 160,000 | AUD 640,000 | 80% | No |
| 25% | AUD 200,000 | AUD 600,000 | 75% | No |
| 30% | AUD 240,000 | AUD 560,000 | 70% | No |
LVR bands and typical treatment
A general guide to how lenders typically view different LVR bands. The 80% threshold for LMI is set out by ASIC MoneySmart; interest-rate tiers and maximum LVRs are set by individual lenders and vary.
| LVR Band | LMI | Typical Lending Treatment |
|---|---|---|
| ≤ 60% | Not required | Lowest-risk tier. Lenders’ lowest advertised rates are typically available at this level. |
| > 60% – 80% | Not usually | Standard tier. LMI is not usually required with a deposit of 20% or more. |
| > 80% – 90%◀ You | Generally yes | LMI generally applies. Available to many borrowers with a deposit of 10–20%. |
| > 90% – 95% | Generally yes | LMI generally applies and is higher. Some lenders accept a deposit as small as 5% (a 95% LVR). |
| > 95% | Above limits | Above most standard lending limits. Typically requires a guarantor or an eligible government guarantee. |
How LVR & LMI Work in Australia
A reference guide to the loan-to-value ratio (LVR) and Lenders Mortgage Insurance (LMI) — how LVR is calculated, the 80% LMI threshold, the standard LVR bands, and worked examples. The 80% LMI threshold is verified against official ASIC MoneySmart guidance; LVR bands and rate tiers reflect common lender practice and vary by lender.
The Loan-to-Value Ratio Explained
The loan-to-value ratio (LVR) is the loan amount expressed as a percentage of a property’s value. It is calculated as the loan divided by the property value, multiplied by 100. The deposit percentage and the LVR always add up to 100%: a 20% deposit is an 80% LVR, a 10% deposit is a 90% LVR, and a 5% deposit is a 95% LVR.
Lenders use LVR as a key measure of risk. A lower LVR means a larger deposit relative to the property price and is generally treated as lower risk, which can give access to a lender’s lower advertised interest rate tiers. A higher LVR is treated as higher risk.
According to ASIC MoneySmart, Lenders Mortgage Insurance (LMI) is usually a one-off cost payable when the amount borrowed exceeds 80% of the property value — that is, when the LVR is above 80%. LMI protects the lender, not the borrower, if the loan cannot be repaid and the property sells for less than the outstanding balance. The premium is set by the lender’s insurer and increases with both the loan size and the LVR.
LVR & LMI in Common Scenarios
How LVR and LMI generally apply across different borrowing situations. Treatment can vary by lender and individual circumstances — these are general descriptions only.
LVR Above 80%
When the LVR is above 80% (a deposit below 20%), LMI generally applies. The premium is a one-off cost set by the lender’s insurer, based on the loan amount and LVR, and can often be added to (capitalised into) the loan, which raises the starting balance and LVR.
Refinancing
When refinancing, the lender generally reassesses the loan as if it were new and recalculates the LVR against the current property value. If the LVR is still above 80% at that point, LMI may be payable again, unless an exemption applies. Built-up equity that lowers the LVR can remove this.
Construction Loans
For construction loans, lenders generally assess LVR against the combined land and build cost (or the on-completion value), and LMI generally still applies where the assessed LVR exceeds 80%. This reflects common lender practice.
Guarantor Support
A family member acting as guarantor (using their property as additional security) can reduce the effective LVR a lender assesses, which some lenders treat as removing the LMI requirement. This depends on lender policy and the guarantor’s circumstances. An eligible government guarantee can have a similar effect.
Key LVR Comparisons
How the standard LVR bands map to LMI and lending treatment, how deposit size translates into LVR, and how owner-occupier and investor loans compare.
LVR Bands and LMI
| LVR Band | Deposit | LMI | Typical Lending Treatment |
|---|---|---|---|
| ≤ 60% | 40%+ | Not required | Lowest-risk tier; lenders’ lowest advertised rates are typically available |
| > 60% – 80% | 20% – 40% | Not usually | Standard tier; LMI not usually required with a 20% deposit or more |
| > 80% – 90% | 10% – 20% | Generally yes | LMI generally applies; available to many borrowers |
| > 90% – 95% | 5% – 10% | Generally yes | LMI generally applies and is higher; some lenders accept a 5% deposit (95% LVR) |
| > 95% | Below 5% | Above limits | Above most standard limits; typically needs a guarantor or government guarantee |
Deposit Size and Resulting LVR
| Deposit | LVR | LMI status |
|---|---|---|
| 5% | 95% | Generally applies |
| 10% | 90% | Generally applies |
| 15% | 85% | Generally applies |
| 20% | 80% | Not usually required |
| 25% | 75% | Not required |
| 30% | 70% | Not required |
Owner-Occupier vs Investor
| Factor | Owner-Occupier | Investor |
|---|---|---|
| LVR calculation | Loan ÷ property value × 100 | Loan ÷ property value × 100 (same method) |
| LMI above 80% LVR | Generally applies | Generally applies |
| Typical maximum LVR | Up to about 95% with LMI (lender-dependent) | Often capped lower by lender policy |
| Rate tier by LVR | Lower LVR can access lower rates | Lower LVR can access lower rates |
Worked Examples
Illustrative scenarios showing how LVR and LMI apply in practice. Figures are examples only and do not reflect any individual’s circumstances.
Australian LVR Snapshot
Loan-to-value ratios, the 80% LMI threshold, and how deposit size maps to LVR
LMI applies above 80% LVR · ASIC MoneySmartLoan & Deposit Split by LVR
AUD 700,000 reference property — how the split shifts as LVR rises
LVR Bands & LMI
The five standard LVR bands and where LMI applies
Funding Split at 80% LVR
How a property is funded at the LMI threshold
LVR by Deposit Size
Loan-to-value ratio as the deposit grows
| LVR Band | Deposit | LMI | Typical Lending Treatment |
|---|---|---|---|
| ≤ 60% | 40%+ | Not required | Lowest-risk tier; lenders’ lowest advertised rates typically available |
| > 60–80% | 20–40% | Not usually | Standard tier; LMI not usually required with a 20% deposit or more |
| > 80–90% | 10–20% | Generally yes | LMI generally applies; available to many borrowers |
| > 90–95% | 5–10% | Generally yes | LMI generally applies and is higher; some lenders accept a 5% deposit (95% LVR) |
| > 95% | Below 5% | Above limits | Above most standard limits; typically needs a guarantor or government guarantee |
LVR & LMI News & Updates
Recent ASIC, APRA and RBA guidance affecting the loan-to-value ratio (LVR) and Lenders Mortgage Insurance (LMI) — sourced from official government channels.
RBA Cash Rate Target Set at 4.35%
The Reserve Bank of Australia set the cash rate target at 4.35%, effective 6 May 2026. The cash rate influences mortgage interest rates and the serviceability assessment that determines how large a loan a borrower can support at a given property value.
Key Points
- Cash rate target: 4.35%, effective 6 May 2026
- Annual CPI (12 months to July 2026): 3.5%
- The cash rate influences home loan interest rates
- Next scheduled cash rate decision: 29 September 2026
Relevance to LVR
Interest rates affect borrowing capacity and loan size, which in turn affects the LVR a borrower can support at a given property value.
Context
LVR itself is the ratio of loan to property value and is not set by the cash rate.
Serviceability Buffer of 3 Percentage Points
APRA expects authorised deposit-taking institutions to assess a borrower's ability to repay using an interest rate at least 3 percentage points above the loan product rate, as a buffer against future rate rises.
Key Points
- Serviceability assessed at the loan rate plus a buffer of at least 3 percentage points
- Applies to most new residential mortgage lending by ADIs
- The buffer is a prudential standard, not a fee or charge
- It affects maximum borrowing capacity, separately from LVR
Relevance to LVR
A lower borrowing capacity can mean a smaller loan, which lowers the LVR at a given property price.
Context
Buffer settings are reviewed by APRA and may change over time.
ASIC MoneySmart: How LMI Works Above 80% LVR
ASIC MoneySmart explains that Lenders Mortgage Insurance is usually a one-off cost payable when the amount borrowed exceeds 80% of the property value, and that it protects the lender rather than the borrower.
Key Points
- LMI generally applies when the loan exceeds 80% of the property value (LVR above 80%)
- It is a one-off premium that protects the lender, not the borrower
- The cost is based on the loan amount and LVR and is set by the insurer
- The premium can often be capitalised into the loan
Relevance to LVR
The 80% LVR line is the standard reference point for whether LMI is payable.
Context
A deposit of 20% or more, or a guarantor arrangement, can remove the LMI requirement.
LVR & LMI — Frequently Asked Questions
Common questions about the loan-to-value ratio (LVR) and Lenders Mortgage Insurance (LMI) — how LVR is calculated, the 80% LMI threshold, and how LVR affects lending. Verified against official ASIC MoneySmart guidance.
LVR is the loan amount expressed as a percentage of the property value. Lenders use it to measure risk: a lower LVR means a larger deposit relative to the property price and is generally treated as lower risk. A 20% deposit gives an LVR of 80%; a 10% deposit gives an LVR of 90%.
ASIC MoneySmart — House Deposits & LVRLVR = loan amount ÷ property value × 100. For example, a loan of AUD 640,000 on a property valued at AUD 800,000 is an LVR of 80%. The deposit is the property value minus the loan, and the deposit percentage is 100% minus the LVR. The calculator above works this out from either a deposit or a loan amount.
ASIC MoneySmart — House Deposits & LVRThere is no single official figure, but an LVR of 80% or below is a common reference point because Lenders Mortgage Insurance is generally not required at that level. ASIC MoneySmart notes that the lower your LVR, the lower your costs; the specific interest-rate tiers are set by each lender and vary.
ASIC MoneySmart — House Deposits & LVRASIC MoneySmart notes that the lower your LVR, the lower your costs. In practice, lenders commonly reserve their lowest advertised rates for borrowers with a lower LVR, as a larger deposit is treated as lower risk. The specific rate tiers are set by each lender and vary. An LVR of 80% or below also generally avoids LMI.
ASIC MoneySmart — House Deposits & LVRThe deposit percentage and the LVR add up to 100%. A 20% deposit is an 80% LVR; a 10% deposit is a 90% LVR; a 5% deposit is a 95% LVR. The higher the deposit relative to the property value, the lower the LVR.
ASIC MoneySmart — House Deposits & LVRAccording to ASIC MoneySmart, LMI is usually payable when the amount borrowed exceeds 80% of the property value — that is, when the LVR is above 80%. LMI protects the lender, not the borrower, if the loan cannot be repaid and the property sells for less than the balance owing.
ASIC MoneySmart — LMIAn LVR of 80% or below generally means LMI is not required — that corresponds to a deposit of 20% or more of the property value. The calculator above shows whether your LVR is above or below the 80% threshold.
ASIC MoneySmart — LMIASIC MoneySmart describes LMI as a one-off cost that protects the lender. The premium itself is set by the lender’s mortgage insurer rather than the government, and generally rises as the loan amount and LVR increase. Because each insurer and lender prices it differently, the cost varies between providers — a participating lender can provide a specific quote.
ASIC MoneySmart — LMIIn many cases the LMI premium can be capitalised — added to the loan amount and repaid over the loan term — rather than paid upfront. This is at the lender’s discretion and means interest is charged on the capitalised premium over time, which also raises the starting loan and LVR. Lender practice varies, so a participating lender can confirm whether capitalisation is available.
When refinancing, the lender generally reassesses the loan as if it were new. If the LVR is still above 80% at that point, a new LMI premium may apply with the new lender. ASIC MoneySmart suggests asking your current lender for a partial refund of LMI when you switch.
ASIC MoneySmart — Switching Home LoansLMI is generally not required where the LVR is 80% or below — that is, with a deposit of 20% or more. Some borrowers also reduce or avoid LMI through a guarantor arrangement (using a family member’s property as additional security) or, with some lenders, profession-based waivers. These depend on lender policy and individual eligibility, so a participating lender can confirm what applies.
ASIC MoneySmart — House Deposits & LVRImportant Disclaimer
For educational and informational purposes only. This calculator produces estimates of the loan-to-value ratio (LVR) based on the property value and the deposit or loan amount provided. The LVR is calculated as the loan amount divided by the property value, multiplied by 100. The calculator indicates whether Lenders Mortgage Insurance (LMI) generally applies using the 80% LVR convention described by ASIC MoneySmart. It does not calculate an LMI premium and does not produce a loan offer, pre-approval, or quote.
LMI premiums are set by insurers, not by Money Snap. Whether LMI applies, and the amount of any premium, is determined by the lender and its mortgage insurer based on the loan amount, the LVR, and the borrower’s circumstances. LMI premiums are not government-set figures and are not provided by this calculator. A participating lender can provide a specific LMI figure for a particular loan.
No warranty of accuracy. While Money Snap takes reasonable care to reflect the Lenders Mortgage Insurance threshold described by ASIC MoneySmart, this calculator is provided “as is” without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Thresholds, caps, and rates change and figures shown may be out of date. Individual circumstances not captured by the inputs may materially affect actual outcomes.
Not financial advice. Information provided is general in nature only and does not take into account your personal objectives, financial situation, or needs. Results do not constitute financial, tax, credit, or legal advice, and use of this calculator does not create an advisory relationship. Before acting on any figure shown, obtain personal advice from a licensed mortgage broker, credit provider, or financial adviser, or refer to ASIC MoneySmart directly. To the maximum extent permitted by law, Money Snap accepts no liability for any loss arising from reliance on this calculator. Use is subject to our Terms of Use.
Official data sources
Data sources: LMI threshold from ASIC MoneySmart — LMI; LVR definition from ASIC MoneySmart — House Deposits & LVR. LVR bands and lending treatment reflect common lender practice and vary by lender. LVR, deposit, and split figures are arithmetic and illustrative.