What is LVR?
What is LVR?
Section titled “What is LVR?”Loan-to-Value Ratio compares how much you’re borrowing to the property’s value:
LVR = Loan Amount / Property Value × 100If you buy a $600,000 property with a $480,000 loan (a $120,000 deposit), your LVR is 80%.
Where you’ll see it
Section titled “Where you’ll see it”- Dashboard — a portfolio-wide LVR combining total loan balances against total property value.
- Comparison view and the property form — per-property LVR alongside the loan amount.
Why lenders care
Section titled “Why lenders care”LVR is one of the main inputs lenders use to price risk. A higher LVR means a smaller buffer if the property’s value falls, so lenders typically charge higher interest rates — or decline the loan outright — above certain thresholds.
The 80% threshold
Section titled “The 80% threshold”In Australia and New Zealand, 80% LVR is the standard line: borrow more than that and most lenders require Lenders Mortgage Insurance (LMI) — a one-off premium that protects the lender, not you, if you default and the property doesn’t cover the outstanding loan on sale. LMI can add thousands of dollars to the up-front cost of a purchase, so it’s a common lever people pull (bigger deposit, guarantor, or a top-up loan against another property) to stay at or under 80%.
Property Insights flags LVR above 80% and prompts for an LMI estimate on the purchase form for exactly this reason.