Loan to value ratio (LVR) is the share of a property's value you borrow. A bigger deposit means a lower LVR. Lenders use it when they assess an investment loan.
Take the deposit off the property's value to get the amount borrowed. Divide that by the value and multiply by 100.
Worked example: a 20% deposit means you borrow the other 80%, so the LVR is 80%. A 10% deposit gives a 90% LVR.
Lenders look at LVR when deciding whether to lend and on what terms.
A higher LVR can mean lenders mortgage insurance. Your lender decides if it applies.
As your property's value grows, your LVR falls, which can help when you plan the next purchase.
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Loan to value ratio: the amount you borrow as a percentage of the property's value.
It can. Your lender decides whether lenders mortgage insurance applies and what it costs, so ask your lender or broker.
Stamp duty and other buying costs are usually paid from your savings as well, which leaves less for the deposit. Enter the deposit after those costs.
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General information only. This calculator is not financial or credit advice. Speak with a licensed lender or mortgage broker about your loan.
