Australia · AUD

Australia loan-to-value ratio calculator.

Calculate mortgage LVR, combined secured exposure and home equity, then test proposed borrowing against an editable target.

Current property and secured debt

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Use the relevant valuation or a realistic estimate
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Used for the authorized-exposure ratio

Proposed borrowing scenario

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Editable planning target—not an approval limit
The proposal is compared with an editable 80% LVR target. LMI may apply above 80%, and approval criteria may be lower.

Property-value sensitivity

How proposed combined LVR changes if the lender-accepted value differs

Value changeProperty valueProposed secured debtCombined LVRHome equityEquity percentage

Planning estimate only—not an appraisal, mortgage approval or LMI decision. A lender determines the accepted property value and applies borrower, serviceability, property, purpose, product and credit requirements.

Australian mortgage equity guide

Calculate mortgage loan-to-value ratio in Australia

Loan-to-value ratio—usually called LVR in Australia—compares a home loan with the property value accepted by the lender. Divide the mortgage by the accepted value and multiply by 100. A $600,000 loan against a $900,000 property has an LVR of 66.7%.

This Australian LVR calculator shows the main mortgage ratio, combined secured-debt ratio, authorized line-of-credit exposure, home equity, target-LVR paydown and potential borrowing room.

LVR, combined LVR and authorized exposure

Main mortgage LVR uses only the first mortgage. Combined LVR adds other mortgages, secured loans and the amount currently drawn on a secured line of credit. The authorized-exposure ratio uses the full credit limit because unused secured credit may still affect the lender’s assessment of additional borrowing.

Home equity is the accepted property value minus outstanding secured balances. Equity is not automatically available to borrow: lenders also test income, expenses, other debts, credit history and the purpose of the loan.

At or below 80% LVR

An 80% LVR is a common Australian planning marker. Staying at or below it will generally avoid LMI, although lender pricing and eligibility still vary.

Above 80% LVR

Lenders mortgage insurance may apply when borrowing exceeds 80% of the accepted value. LMI protects the lender, and its availability and price are lender- or insurer-specific.

High-LVR lending

Some lenders and eligible guarantee schemes permit smaller deposits, but maximum ratios, property caps, loan purposes and borrower requirements differ.

Investment and cash out

Investment lending and equity release may use different maximum LVRs or documentation rules. Enter the target appropriate to the scenario being explored.

Why lender valuation changes the LVR

A lender may use an appraisal, automated valuation, contract price or another accepted method. If the accepted value is below the amount expected, LVR rises. For a purchase, a lender may base its assessment on the lower of the purchase price and valuation. Use the sensitivity table to model a 10% or 20% valuation difference.

A higher LVR can affect product availability, interest rates, LMI, refinance options and usable equity. A lower LVR means a larger equity cushion but does not guarantee approval.

LVR and lenders mortgage insurance

MoneySmart explains that borrowers with less than 20% equity may have to pay LMI when refinancing. LMI can increase switching costs and may outweigh expected savings. Review current fees, break costs, discharge costs and possible duty as well as the rate. See MoneySmart’s switching home loans guidance.

This calculator flags potential LMI but does not estimate a premium, because there is no single national premium rate. Obtain a lender or insurer estimate for the actual loan and property.

Using LVR for deposits, refinancing and usable equity

For a purchase, the deposit percentage and LVR broadly add to 100% when the accepted value equals the price and no costs are financed. For an existing owner, usable equity to an 80% target is 80% of the accepted value minus current secured debt. For refinancing, proposed combined debt should include any cash out and costs added to the new loan.

Use the Australia home deposit calculator for purchase cash requirements and the Australia home equity calculator for borrowing payments and long-term equity projections.

Australia LVR questions

How is LVR calculated?

Divide the mortgage or total secured debt by the lender-accepted property value and multiply by 100.

What is a good LVR in Australia?

There is no single best ratio, but 80% or less is a common planning target because LMI will generally not be required. Lower LVR provides more equity but does not guarantee approval.

What is combined LVR?

Combined LVR includes all outstanding debts secured against the same property rather than only the main mortgage.

Why include an unused secured credit limit?

The authorized line represents potential secured exposure and may reduce the room a lender considers available for further borrowing.

Can I refinance above 80% LVR?

Possibly, depending on the lender, property and borrower, but LMI and stricter requirements may apply. Refinancing costs should also be considered.

Does the bank use my property estimate?

The lender determines which value it accepts. A lower accepted value increases LVR and reduces equity and borrowing room.