What Is LVR and Why Does It Matter for Your Home Loan?
Published 15 November 2026 · Mortgages
Try it nowLVR Calculator →LVR (loan-to-value ratio) is your loan as a percentage of the property’s value. Check yours with the LVR calculator.
A $560,000 loan on a $700,000 home is an LVR of 80%.
Why 80% matters
Above 80% LVR most lenders charge lenders mortgage insurance (LMI), which can cost thousands. Many also charge higher interest rates.
LVR bands and pricing
Lenders price loans in bands such as ≤60%, ≤70%, ≤80% and ≤90%. Dropping into a lower band can cut your rate.
Which value is used?
The lower of the purchase price and the lender’s valuation.
How to lower your LVR
- Save a bigger deposit.
- Use a guarantor (family equity).
- Make extra repayments.
- Get a new valuation when prices rise, then ask for a better rate.
Government help
The Home Guarantee Scheme lets eligible buyers purchase with a 5% deposit and no LMI.
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15 Nov 2026