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An LVR calculator measures how much of a property's value you're borrowing. If you borrow $480,000 against a $600,000 home, your LVR is 80%. Lenders use that figure to judge risk, set interest rates, and decide whether to charge LMI.
Loan-to-value ratio (LVR) is the loan amount divided by the property value, expressed as a percentage, and it is the main risk measure Australian lenders use for a home loan. A low LVR means you own more of the property outright. A high LVR means the bank has more money on the line.
The calculator on the Investors Choice Mortgages (ICM) Hub takes the guesswork out of that sum. It's built for buyers who are still deciding how much deposit to save, and for owners who want to know where they stand before they refinance or buy again. You don't need a login to understand the maths, but a free Hub account keeps your scenarios in one place.
Two terms come up again and again. Your loan amount is what you borrow, and that can include costs you add on, such as capitalised LMI or lender fees. Your property value is the price you pay when buying, or the lender's valuation when refinancing. Lenders lend against whichever is lower at purchase, so a valuation below the contract price can push your LVR up.
You calculate LVR by dividing the loan amount by the property value and multiplying by 100. A $540,000 loan on a $720,000 property gives 75%. The formula takes ten seconds by hand, but the real work is testing different deposits, prices and loan sizes.
Here's how to do it with the Hub calculator:
Say you're buying a $750,000 apartment with $100,000 saved. Your loan is $650,000, so your LVR is 86.7%. That's above 80%, so LMI will probably apply. Lift your deposit to $150,000 and the loan drops to $600,000, giving an LVR of exactly 80%. A $50,000 larger deposit moves this buyer from 86.7% LVR to 80% LVR, which is the difference between paying LMI and avoiding it.
Costs like stamp duty and legal fees sit on top of the price, so the deposit you need for a given LVR is only part of your upfront cash. If you're working out the whole picture, the Buying Costs Calculator shows what else you'll need.
Lenders mortgage insurance is typically required when your LVR exceeds 80%, meaning your deposit is less than 20% of the property's value (Mozo, 2026). LMI protects the lender, not you, and most borrowers add it to the loan, which means paying interest on it for years.
Many lenders price their loans in bands, so a borrower at 78% LVR can qualify for a sharper rate than one at 88%. Policies vary from lender to lender, and that's one reason a broker with access to 10+ lenders can find a better fit.
Some lenders won't touch loans above 90% LVR, and a few restrict the property types they'll lend against at high ratios. Small apartments and certain postcodes often face tighter limits.
| LVR band | What usually happens | Best for |
|---|---|---|
| Up to 60% | Widest lender choice, strongest rate options, easiest access to equity | Established owners, investors adding to a portfolio |
| 60% to 80% | No LMI. Most standard rate discounts available | Buyers with a 20%+ deposit, refinancers |
| 80% to 90% | LMI typically applies. Fewer lenders, some restrictions on property type | Buyers with a 10% to 20% deposit |
| 90% to 95% | Highest LMI cost. Tightest lender policy, stricter credit assessment | First home buyers with small deposits |
Comparing LVR bands shows that the jump from 80% to 90% costs far more than the jump from 60% to 70%, because LMI premiums rise steeply as the deposit shrinks.
Treat the table as a guide, not a promise. Each lender sets its own cut-offs and each has its own list of exceptions. That's why the Hub calculator is a first step and a broker check is the second.
Choose a lower LVR when you can reach it without draining your emergency savings. Accept a higher LVR when waiting would cost you more than LMI does, for example in a rising market or when rent is eating into your savings. There's no universal right answer, which is why testing both options in the calculator pays off.
| Deposit | LVR | Indicative LMI |
|---|---|---|
| 19% | 81% | Typically under $2,000 |
| 15% | 85% | Around $4,000 to $7,000 |
| 10% | 90% | Around $10,000 to $15,000 |
A $12,000 LMI premium capitalised onto a loan at 6% over 30 years adds roughly $24,000 to $26,000 in total repayments (Mozo, 2026). That's why some buyers save an extra few thousand dollars to slip under 80%, and why others decide the trade-off is worth it. Those figures are examples from a published guide, not a quote. Your actual premium depends on the insurer and the lender's policy.
Some buyers have options that reduce or remove LMI. Eligible first home buyers may be able to use a government guarantee scheme, and some professions qualify for LMI waivers with certain lenders. Ask about both. Our first home buyer service can check what you might qualify for.
The ICM Hub LVR calculator sits alongside the rest of a property toolkit built by mortgage broker Jane Slack-Smith and her team. You get the ratio, then you can move straight to the buying costs, rental yield, or refinance tools without re-entering everything.
Here's what sets it apart:
The Hub has guided more than 30,000 Australians, and the LVR calculator is one of its most-used entry points for new buyers.
Clients who check their LVR early usually make better decisions on deposit size, timing and lender choice, because they know where the thresholds sit. Two examples from the Investors Choice Mortgages client stories show what that looks like in practice.
Emma R. from Brisbane bought her first home within six months of her initial consultation. Knowing her LVR up front let her plan her deposit and pick a purchase price that fitted her borrowing position, instead of falling in love with a home she couldn't fund.
Sarah K. in Melbourne refinanced and released equity, and saved $340 a month with a three-week turnaround. Her refinance worked because her LVR had dropped since she'd bought, which opened up sharper pricing.
A good LVR is 80% or lower, because that's the level where most lenders stop charging LMI and start offering their best rates. Below 60% gives you even more options. A higher LVR isn't automatically bad, but it usually costs more.
Divide your loan amount by the property value and multiply by 100. A $400,000 loan on a $500,000 property is an LVR of 80%. The ICM Hub calculator does this instantly and lets you test different deposits.
Usually yes. Lenders typically require LMI when your LVR exceeds 80%. Some lenders waive it for certain professions, and eligible first home buyers may avoid it through a government guarantee scheme. A broker can check which options fit you.
Lenders use whichever is lower. If you agree to pay $800,000 but the lender's valuer says $760,000, your LVR is calculated on $760,000. You'd then need extra deposit to keep the same ratio.
Your LVR is your current loan balance divided by the lender's new valuation of your home. If your property has risen in value or you've paid the loan down, your LVR falls, which can unlock better rates or equity release.
Only if you borrow them. Stamp duty and legal costs usually come from your savings, so they don't affect LVR. If you borrow to cover them, or capitalise LMI, your loan rises and so does your LVR.
Many investors borrow at 80% or below to avoid LMI and keep cash flow manageable. Some go higher when the numbers stack up. Your ideal LVR depends on your income, other debts, and the property's rental return.
The Hub has a free account level, and you can start with a free account. Some Hub tools and services unlock when you become a client. Create your account to see which calculators are open to you.
Your LVR decides whether you pay LMI, how many lenders will say yes, and how much equity you can use later. The ICM Hub calculator gives you the number in seconds, and a broker can turn it into a plan.
Prefer to talk it through? Call 1800 46 48 10 or email askus@investorschoice.com.au. You can also browse our other property calculators or start with a loan health check.
