Home Loans
Personal Loans
Car Loans
Business Loans
Credit Cards
Banking
Health Insurance
Home Loans
Personal Loans
Car Loans
Business Loans
Credit Cards
Banking
Health Insurance
Use our LVR calculator to determine your loan-to-value ratio, which lenders consider when assessing your eligible interest rate and the need to pay lender's mortgage insurance (LMI).
Interest rates from
5.79%
p.a.
Comp. rates from^
5.83%
p.a.
Variable Bare Home Loan 90% LVR
Borrow up to $2m with competitive variable rates from 5.79% p.a. (comparison rate^ 5.83% p.a.). Enjoy flexible payment options, zero monthly or ongoing fees, unlimited free redraws and up to 30 year terms. 90% Max LVR applies. Visit site for T&Cs and to check eligibility.
To calculate your loan-to-value ratio (LVR), simply follow these steps:
Enter the estimated value of the property you’re looking to buy. For instance, you might have a house in mind that’s priced at $600,000.
Now enter the deposit amount you plan to put toward your chosen property. In general, a larger deposit will result in a lower LVR.
Your loan-to-value ratio will be displayed with two decimal points, giving you a clear understanding of your borrowing situation.
To calculate your LVR, simply divide the home loan amount by the property value. For example, $450,000 (loan amount) ÷ $600,000 (property value) = 75% LVR (0.75 x 100).
Here are some advantages of using our LVR calculator:
Our calculator helps you identify whether you need to pay lender’s mortgage insurance (LMI) based on your LVR, allowing you to plan your finances more effectively.
Borrowers with lower LVRs (80% or less) often qualify for better home loan interest rates, which can lead to significant savings over the loan term.
By providing a clear picture of your LVR, our calculator enables you to make informed decisions about your deposit and borrowing options, helping you choose the best path for your financial situation.
Understanding your LVR allows you to assess your overall financial health and make necessary adjustments to your savings strategy, ensuring you’re better prepared for homeownership or refinancing.
LVR stands for loan-to-value ratio, which represents the percentage of the loan amount compared to the property's value. LVR is a crucial metric used by lenders to assess the risk associated with a mortgage. A lower LVR indicates a smaller loan relative to the property’s value, which generally suggests a lower risk for the lender.
For example, if you have a $160,000 deposit on a property valued at $800,000, your LVR would be 80%, meaning you would need to borrow $640,000. An LVR greater than 80% typically requires you to pay lender’s mortgage insurance (LMI).
Understanding your LVR is essential, as it not only affects your borrowing capacity and incurring additional costs like LMI, but also influences the interest rates you may be offered by lenders.
The average home loan borrower in Australia in 2026 has an LVR of 60.6%, according to Money.com.au’s analysis of thousands of loan requests. The table below shows the average LVR of borrowers across the country.
| State/territory | Average borrower LVR |
|---|---|
NSW | 59.3% |
VIC | 63.2% |
QLD | 60.6% |
SA | 61.1% |
WA | 59.2% |
TAS | 62.1% |
ACT | 62.2% |
NT | 65.1% |
 | Laboratories Credit Union Simple Home Loan Owner OccupiedInterest rate 5.19% per annum (variable) Comparison rate 5.21% per annum App Fee: $200 Max LVR 95% | Compare now on Money.com.au or visit site |
 | Pacific Mortgage Group Owner Occupied Variable Home LoanInterest rate 5.34% per annum (variable) Comparison rate 5.34% per annum Redraw Max LVR 80% | Compare now on Money.com.au or visit site |
 | Border Bank First Home LoanInterest rate 5.34% per annum (variable) Comparison rate 5.41% per annum Cashback Max LVR 98% | Compare now on Money.com.au or visit site |
| Border Bank First Home LoanInterest rate 5.34% per annum (variable) Comparison rate 5.41% per annum Cashback Max LVR 98% | Compare now on Money.com.au or visit site |
 | Gateway Bank Green Plus Home LoanInterest rate 5.35% per annum (variable) Comparison rate 5.64% per annum Redraw Offset Max LVR 80% | Compare now on Money.com.au or visit site |
Lenders usually assess a property’s value through professional appraisals, comparable sales in the areas, and market trends. This valuation helps them determine the LVR and the associated risks before approving a home loan.
A high LVR (typically above 80%) is generally considered worse because it indicates a higher loan amount relative to the property's value. This increases the lender's risk and may require you to pay lender’s mortgage insurance (LMI), as well as potentially higher interest rates. The best rates and loan terms are usually offered to borrowers with a low LVR.
A good LVR is usually considered to be 80% or lower. This level reduces the need for LMI and may qualify you for lower interest rates and more favourable terms. Lenders normally have LVR tiers that provide varying rates based on the LVR percentage. For instance, you may receive a lower rate if your LVR is 70% compared to higher LVRs like 80% or 90-95%.
Yes, you can reduce your LVR over time by making mortgage repayments or increasing your property's value through renovations or market growth. Regularly checking your LVR can help you spot opportunities for refinancing or adjusting the loan terms with your lender.
Your property is usually valued by lenders through a professional appraiser. Appraisers consider factors such as the property's location, size, condition, and recent sales of similar properties in the area. Lenders may also use automated tools that analyse market data to provide an estimate. This valuation helps determine your LVR and can help you make the right lending decisions.
Home loan comparison rates are calculated based on a loan amount of $150,000 repaid over a 25-year term with monthly repayments. The comparison rates only apply to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you.
General information only
The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any home loan product is suitable for you and seek independent financial advice if necessary.
We are not providing you with a recommendation or suggestion about a particular home loan. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to use a particular product.
What products, features and information are shown
While we make every effort to ensure all home loans available in Australia are shown in our comparison tables, we do not guarantee that all products are included.
Our product comparisons may not compare all home loan features and attributes relevant to you.
Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the lender.
How home loans are sorted and filtered by default
Users can easily change the sort order and apply product filters to our product comparison tables. However, when you arrive on a page initially, by default home loans are sorted by:
Some home loan products listed in our tables are available through a mortgage broker. These are the products with an option to ‘Check Eligibility on Money.com.au’. Mortgage brokers may not be able to offer loans from every provider and there may be more suitable loans for your personal circumstances.
Mortgage brokers are not authorised by Money Australian Credit Licence and operate under their own Australian Credit Licence, or as a credit representative of another Australian Credit Licensee. Mortgage brokers can make recommendations about home loan products that may suit your objectives, financial situation and needs.
Our tables feature all home loans available from lenders on our database that match the search criteria selected. Lenders do not pay to feature in our tables, nor do we earn commission if you click to visit a lender’s website. The order of the products in the table is not influenced by any commercial arrangements.
If you get help from a mortgage broker as a result of visiting this page, we may earn a commission.
