Loan To Value Ratio (LVR)

What is Loan to Value Ratio (LVR)?

In short, its the value of your loan verses property. Lets take a look at how this looks…

Loan To Value Ratio

Calculating the LVR is simple, in the example above we have a property worth $200,000 and have borrowed $160,000 (having contributed a $40,000 deposit). To work out the LVR simply divide the Loan Amount by the Property Valuation. Taking the example above the calculation looks like:

  • LVR = $160,000 ÷ $200,000
  • LVR = 80%

LVR is important because it represents the risk associated to the bank / lender. It will determine whether you will need to pay lenders mortgage insurance and what discounts you qualify for.

LVR Calculator
Loan amount:
Property value:
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Current LVR: 0%
Disclaimer: This calculator is to be used as a guide to help you better understand your options. We have not assessed what options are suitable for your needs or if you meet other lending criteria that would allow you to access your equity. Any repayments quoted above are calculated using your current home loan balance over a term of 30 years. We strongly recommend that you make additional repayments and pay your loan off sooner. If you borrow over 80% of the property value then you may pay an LMI premium

Call us on 1300 088 065 for your complimentary review to see how the loan to value ratio affects you.