Disclaimer: This calculator provides estimates only and should not be considered financial or tax advice. LMI premiums shown are indicative estimates based on published industry rate bands and vary between lenders and mortgage insurers. Always obtain a formal LMI quote from your lender or broker before making decisions. Evercend Pty Limited does not hold an Australian Credit Licence and does not provide any credit or credit-related services.
LVR calculator inputs and results
Includes savings, equity, and any first home grants.
Enter a property value to begin
Add the property value and deposit amount on the left to see your LVR and LMI estimate instantly.
What is your loan-to-value ratio?
Your loan-to-value ratio, or LVR, is the size of your loan compared to the value of the property, shown as a percentage. If you borrow $450,000 to buy a $600,000 home, your LVR is 75 percent.
LVR matters because it affects whether you need to pay lenders mortgage insurance, and how a lender views the risk of the loan. This calculator works out your LVR and gives an indicative lenders mortgage insurance estimate. It is a model, not a quote or an approval.
How to use this calculator
Enter the property value
Use the purchase price or the lender's valuation of the property.
Enter your deposit
Add the deposit you have saved towards the purchase.
Check the loan amount
The calculator uses the property value less your deposit as the loan amount.
Read your LVR
The result shows your LVR and whether lenders mortgage insurance is likely to apply.
How this calculator works
The calculator divides the loan amount by the property value and shows the result as a percentage. The loan amount is the property value less the deposit you enter.
Assumptions used
LVR is calculated as the loan amount divided by the property value. A deposit below 20 percent of the property value produces an LVR above 80 percent, which usually means lenders mortgage insurance applies. Any lenders mortgage insurance figure shown is an estimate only. Actual premiums are set by the lender's insurer and vary by lender, loan size and LVR. The estimate does not include stamp duty, other government charges, or a lender's approval decision.
Worked example
A buyer purchases a $700,000 property with a $70,000 deposit. The loan is $630,000.
The LVR is $630,000 divided by $700,000, which is 90 percent. Because the LVR is above 80 percent, lenders mortgage insurance would usually apply, unless the buyer is eligible for a government scheme that avoids it.
A larger deposit lowers your LVR. Reaching an LVR of 80 percent or below usually removes the need for lenders mortgage insurance.
What changes your LVR and LMI
Several things change your loan-to-value ratio and whether lenders mortgage insurance applies. The main ones are:
Deposit size
A larger deposit reduces the loan amount and lowers your LVR. Reaching a 20 percent deposit usually avoids lenders mortgage insurance.
Property value
LVR is measured against the property value or the lender's valuation. If a lender values a property below the purchase price, the LVR can be higher than expected.
Lenders mortgage insurance
When the LVR is above 80 percent, lenders mortgage insurance usually applies. It protects the lender, not the borrower, and can be paid upfront or added to the loan.
Lender risk view
Lenders generally view a lower LVR as lower risk, which can affect the rate and terms offered.
Government schemes
Eligible first home buyers may be able to buy with a 5 percent deposit and avoid lenders mortgage insurance through the Australian Government 5% Deposit Scheme, administered by Housing Australia.
Equity over time
As you repay the loan or the property value rises, your LVR falls. A lower LVR can give you more options when refinancing.
Rates and assumptions used
| Item | Value used | Source |
|---|---|---|
| LVR formula | Loan amount divided by property value, as a percentage | ASIC MoneySmart |
| LMI threshold | Applies when the LVR is above 80 percent, that is a deposit below 20 percent | ASIC MoneySmart |
| LMI premium | Set by the insurer, paid upfront or added to the loan | ASIC MoneySmart |
| Government 5% Deposit Scheme | Eligible first home buyers may buy with a 5 percent deposit and no LMI | Australian Government, Treasury |
Figures checked against the sources above on 10 August 2026.
Frequently asked questions
LVR is the loan amount divided by the property value, shown as a percentage. For example, a $480,000 loan on a $600,000 property is an LVR of 80 percent. Lenders usually measure it against the lower of the purchase price or their own valuation.
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Break-even and net saving on a switch
How the 50% CGT Discount Works
Guide
Sources
- •ASIC MoneySmart, save for a house deposit
- •ASIC MoneySmart, buying a house
- •Australian Government, home ownership support and the 5% Deposit Scheme
Content reviewed and figures checked against the sources above on 10 August 2026.