--- title: LVR Calculator | Loan to Value Ratio Explained | GNT Finance description: Calculate your loan to value ratio, see whether LMI applies and the deposit you need to reach 80% LVR. Free LVR calculator and guide from GNT Finance Melbourne. url: https://gntfinance.com.au/calculators/lvr/ section: calculators updated: 2026-09-01 author: Gorakh Timilsina, GNT Finance --- # LVR calculator (loan to value ratio) **In short:** Your loan to value ratio (LVR) is the loan amount divided by the property's value, expressed as a percentage. The rule of thumb: 80% or below means no lenders mortgage insurance and the sharpest rates; above 80% LMI usually applies; above 90% your lender choices narrow. A $650,000 home with a $65,000 deposit is a 90% LVR. ## How this calculator works LVR = loan amount ÷ property value × 100. The detail is in what goes into each side. ### Property value Lenders use the lower of the purchase price and their own valuation. Pay $650,000 at auction in Craigieburn and the valuer says $630,000, and the LVR is calculated on $630,000. On a refinance the valuation alone sets the figure. ### Loan amount This includes anything capitalised into the loan, most commonly the LMI premium. A 90% loan with LMI added can become a 92% loan, so lenders cap the total including LMI. The calculator also shows the deposit needed to reach 80% LVR, and whether the First Home Guarantee (5% deposit, no LMI, Melbourne price cap $950,000) could let you skip LMI at a higher LVR. ## How to use the result Read the result in bands rather than as a single number. | LVR band | What it usually means | |---|---| | 60% or below | Lowest rates, widest lender choice | | 60% to 80% | Standard pricing, no LMI | | 80% to 90% | LMI applies; rate loading at some lenders | | 90% to 95% | LMI is substantial; 5% genuine savings typically required | | Above 95% | Rare outside guarantor and government scheme loans | If you land just above a band, work out how much cash would move you under it. Sitting at 81% can cost thousands in LMI that a little extra deposit would avoid. On a refinance, a higher valuation from another lender does the same job; see our [equity calculator](/calculators/equity/). ## Worked example A Kalkallo couple buys a $650,000 house with $65,000 saved, paying duty and costs from other savings. For illustration, the rate is 6.00% p.a. over 30 years. | Scenario | Deposit | Loan | LVR | LMI applies? | Monthly repayment | |---|---|---|---|---|---| | 10% deposit | $65,000 | $585,000 | 90% | Yes, unless eligible for First Home Guarantee | $3,507 | | 5% deposit under First Home Guarantee | $32,500 | $617,500 | 95% | No (government guarantee) | $3,702 | | 20% deposit | $130,000 | $520,000 | 80% | No | $3,118 | At 90% LVR the couple must budget for an LMI premium, typically five figures on a loan this size; our [LMI calculator](/calculators/lmi/) estimates it. As first home buyers, the First Home Guarantee would remove LMI with only a 5% deposit, and at $650,000 they would also sit inside Victoria's sliding first-home-buyer duty concession ($600,001 to $750,000). ## What this calculator doesn't include - **The lender's actual valuation**, which can land above or below the price you paid. - **LMI premium amounts**, which depend on insurer, loan size and LVR band. - **Stamp duty, legal fees and other upfront costs**, covered by our [upfront costs calculator](/calculators/upfront-costs/). - **Lender-specific LVR caps** for certain postcodes, high-density apartments, small units or vacant land, sometimes as low as 60%. - **Guarantor security**, which lowers the effective LVR by adding a family member's property. ## Tips to improve the outcome - Push the deposit to 20% if you can; our [deposit savings calculator](/calculators/deposit-savings/) shows how long it will take. - Check First Home Guarantee eligibility before paying LMI; the [5% deposit guide](/guides/first-home-guarantee-5-percent-deposit/) explains the rules. - Consider a [guarantor home loan](/services/guarantor-home-loans/) if parents have equity; it can take a 95% loan to an effective 80%. - Buy below the top of your range to limit valuation risk. - On a refinance, get valuations from more than one lender; they can differ by tens of thousands. - Money in an offset account does not reduce LVR; extra repayments before refinancing do. ## Frequently asked questions ### What is a good LVR for a home loan? An LVR of 80% or below is the benchmark: no lenders mortgage insurance, access to almost every lender and the best rate tiers. Under 60% often unlocks a further discount. Above 80% is workable, especially with a government guarantee, but costs more and needs a stronger application. ### How is LVR calculated? Divide the loan amount by the property value and multiply by 100. On a $700,000 property with a $560,000 loan the LVR is 80%. Lenders use the lower of contract price and valuation and include any capitalised LMI in the loan, so the LVR on your approval can be higher than your own figure. ### Can I get a home loan with 95% LVR? Yes, but options are narrower. Some lenders go to 95% including LMI with a strong credit history and 5% genuine savings held for three months. Eligible first home buyers can borrow 95% under the First Home Guarantee without LMI. Our [low deposit home loans](/services/low-deposit-home-loans/) page covers the paths. ### Does LVR affect my interest rate? Yes. Most lenders price in LVR tiers, typically at 60%, 70%, 80% and 90%, with each step up adding to the rate. A falling LVR through repayments or capital growth is a strong reason to review your loan; our [refinance calculator](/calculators/refinance/) shows the potential saving. ### What LVR do I need to avoid LMI? Generally 80% or below, meaning a 20% deposit plus costs. Exceptions include the First Home Guarantee, guarantor loans, and professional packages for doctors, lawyers and accountants that waive LMI to 90% or higher. Our guide to [understanding LVR and LMI](/guides/understanding-lvr-and-lmi/) covers each path. ## Talk to GNT Finance If your LVR sits just above a threshold, a small change in deposit, lender or structure can save a great deal. Gorakh Timilsina and the team can map your options across our lender panel, at no cost to you for our home-loan service in most cases. [Book a free consultation](/contact/) or call 0426 403 703.