Loan to Value Ratio (LVR)
Loan to Value Ratio is a calculation used by banks and lenders which calculates the
percentage of debt in relation to the value of the property.
Most lenders will only lend up to 95% of the value of the property inclusive of
Lenders Mortgage Insurance (LMI). LMI is payable on most loans if you intend
to borrow above 80%. The more you borrow above 80%, the higher the LMI you will pay.
Adjust this amount on the dropdown menu to see the different results.
Some lenders will charge an establishment fee depending on the product chosen.
This fee is typically $600.
A lot of home loan products these days will not charge an establishment fee.
This is something to consider when selecting the right product for
If you want to borrow more than 80% of the property value, then you will most
likely have to pay Lenders Mortgage Insurance (LMI).
Paying LMI does help you achieve home ownership sooner without the need for a
20% deposit. The more you borrow above 80% the higher the cost of the LMI,
but lower deposit you will need to pay. This calculator provides an estimate
only as each lender will calculate LMI differently.