Calculate your Loan-to-Value Ratio (LVR) by entering your property value and loan amount. LVR is an important factor that lenders consider when assessing your loan application.
Property Value: $0
Loan Amount: $0
LVR: 0%
The Loan-to-Value Ratio (LVR) is a measure of how much you're borrowing compared to the value of the property. It's calculated by dividing the loan amount by the property value and multiplying by 100 to get a percentage.
LVR stands for Loan-to-Value Ratio, and it's a key factor lenders use when assessing your home loan application. It represents the percentage of the property’s value that you're borrowing. For example, if you're buying a home worth $600,000 and you borrow $480,000, your LVR is 80%. A lower LVR generally means less risk for the lender and may help you access better interest rates. If your LVR is above 80%, you may be required to pay Lenders Mortgage Insurance (LMI).
Lenders Mortgage Insurance (LMI) is a one-off insurance premium that a borrower may need to pay when their Loan-to-Value Ratio (LVR) is above 80%. It protects the lender, not the borrower, in case you default on your home loan. LMI allows you to buy a property with a smaller deposit — often as little as 5% — but it can add thousands to your loan cost. The exact amount depends on your loan size, deposit, and lender policy.