Work out your LVR, and what it means for your loan
our loan to value ratio affects more than just how much you can borrow, it can influence your interest rate, whether you'll pay lenders mortgage insurance, and which lenders will even consider your application. Use our calculator to work out your LVR.
LVR stands for loan to value ratio, and it's the amount you're borrowing expressed as a percentage of the property's value. A lower LVR generally means you've got a bigger deposit or more equity, which can work in your favour with lenders.
How does my LVR affect my home loan?
A higher LVR can mean a higher interest rate, the requirement to pay lenders mortgage insurance, or a lender being more cautious about approving your application. Understanding your LVR before you apply helps you know what to expect.
What's considered a good LVR?
This depends on what you're trying to achieve and the lender's own criteria, so there's no single number that suits everyone. Generally, a lower LVR gives you more options and potentially better terms, but plenty of buyers proceed successfully at higher levels too.
Can I reduce my LVR before applying for a loan?
Yes, either by saving a larger deposit, using existing equity, or waiting for your property's value to increase. We can talk you through which approach makes sense for your situation.
What should I do after working out my LVR?
Use it as a starting point, then talk to us about how it affects your borrowing options and whether there's anything worth adjusting before you apply. We can help you understand where you stand and what comes next.
