LVR calculator
How much of your property is borrowed?
Enter the property value and either your loan or your deposit to see your loan-to-value ratio instantly — plus whether you're likely to pay Lenders Mortgage Insurance.
Your numbers
Purchase price or current market value
How much you plan to borrow
- Implied deposit
- A$150,000
- Deposit as % of value
- 20.0%
Loan-to-value ratio
80.0%
Standard range
At or below 80% you usually avoid Lenders Mortgage Insurance (LMI) and qualify for standard lending.
Most lenders charge Lenders Mortgage Insurance (LMI) once your LVR rises above 80%.
LVR is a guide only. Lender policies, LMI thresholds and valuations vary. Figures update as you type.
What is LVR, and why does it matter?
Loan-to-Value Ratio is the single number lenders lean on most when deciding how much to lend and on what terms.
The formula
Loan amount ÷ property value × 100
LVR is simply the size of your loan expressed as a percentage of the property's value. Borrow $600,000 against a $750,000 property and your LVR is 80%. The rest — the $150,000 — is your equity in the property.
The 80% line
LVR above 80% → LMI usually applies
Lenders treat 80% as the key threshold. Stay at or below it and you generally avoid Lenders Mortgage Insurance and access standard rates. Go above it and you'll usually pay LMI — a one-off premium that protects the lender, not you — and it can run into the thousands.
A worked example
On a $750,000 property with a $600,000 loan, your LVR is 80.0% — right on the line, with $150,000 of equity. Put in a smaller $75,000 deposit and borrow $675,000 instead, and your LVR jumps to 90.0%. The property hasn't changed, but you're now firmly in LMI territory with a thinner equity buffer if the market dips.
Why investors watch their LVR
- Lower LVR usually means lower interest rates and no LMI premium.
- Equity — the flip side of LVR — is what you can draw on to fund the next deposit.
- As values rise or you pay down the loan, LVR falls and borrowing power grows.
- Portfolio LVR across all your properties is what lenders assess for the next purchase.
Akweno tracks LVR and equity for every property and across your whole portfolio, updating automatically as you record valuations and pay down loans — so you always know how much borrowing power you've built. Start free.