LVR Calculator

Frequently Asked Questions

How Do I Calculate LVR?

You calculate the LVR is calculated by dividing the loan amount by the actual purchase price or valuation of the property, then multiplying it by 100.

For example, let’s say that you’d like to borrow $240,000 and the property you’re using as security is valued at $300,000.

The LVR of the home loan would be calculated like this:

($240,000 loan ÷ $300,000 property value) x 100 = 80% LVR.

When will I be charged LMI?

Lenders Mortgage Insurance (LMI) generally applies for home loans with an LVR of 80% and above.

Home loans for 80% LVR and above are considered to be a high-risk LVR by most lenders.

The reason is that if you were to default on your mortgage, the mortgage insurer charges the lender a risk fee, which is passed on to you as an LMI premium.

For low doc loans, the borrower lacks the necessary documentation required to prove their earnings and income.

This means that the risk is greater for the lender, and as such, LMI is required at 60% of the property value and above.

Does LVR Affect Your Borrowing Power?

Yes, it does.

Lenders place a large emphasis on the LVR when assessing your loan application. The lower the LVR, the lower the risk is to the bank, hence you’re likely to get better rates with a low-LVR home loan.

A low LVR usually means you’ve saved up a larger deposit.

Work with an Inovayt broker

Our team of expert brokers are with you through every step of the way on your home buying journey. Not only do we help you find the right loan, we also stay with you right up until after settlement, helping you navigate stamp duty and other home buying fees.

At Inovayt, our mission is to provide lifetime financial solutions by thoroughly understanding your individual needs and goals. As such, we believe every client deserves our award-winning customer service. Our friendly team prioritises client satisfaction above all else, going above and beyond to help you achieve your financial goals. Regardless of what stage of the finance journey you’re on, our team provide quality advice to help you make informed and empowered financial decisions.

Our customer service extends far beyond your initial meeting, as we believe in nurturing you beyond the first transaction. Our brokers work hand in hand with you to ensure you receive the best possible outcome and are available to chat face to face, online, or via the phone at a time that suits you.

Our focus is always on achieving the best possible outcomes for our clients. Finding the right finance to match your goals and objectives is no easy task, so our friendly team work tirelessly to tailor a solution for you. We are solutions-driven, so we work hard to tackle any hurdles that may arise to ensure client satisfaction.

Why Choose Inovayt

Finding the right financing to match your needs and goals is never an easy task. Our team prides themselves on finding the right solution for each client, regardless of their personal situation.

Our brokers work hand in hand with our clients, to ensure they receive the best possible outcome. We are available to chat face to face, online, or via phone, at a time that suits you.

Our focus is always about achieve the best possible outcomes for our clients. We will tackle any hurdles that may come up, to ensure that you are satisfied and have achieved your desired outcome.

Simple

Finding the right financing to match your needs and goals is never an easy task. Our team prides themselves on finding the right solution for each client, regardless of their personal situation.

Flexible

Our brokers work hand in hand with our clients, to ensure they receive the best possible outcome. We are available to chat face to face, online, or via phone, at a time that suits you.

Solutions-driven

Our focus is always about achieve the best possible outcomes for our clients. We will tackle any hurdles that may come up, to ensure that you are satisfied and have achieved your desired outcome.

Our experienced and friendly team can provide you with lifetime financial solutions by understanding your individual needs and goals.

Get in touch
1300 354 355

Send us an email info@inovayt.com.au

Start your journey, contact Inovayt today

Get in touch
1300 354 355

Send us an email
info@inovayt.com.au

Loan Value Ratio (LVR) refers to the amount borrowed from the lender compared to the value of the purchased property. Use our free LVR calculator today to determine your rate.

Loan Value Ratio (LVR) refers to the amount borrowed from the lender compared to the value of the purchased property. Use our free LVR calculator today to determine your rate.

Frequently Asked Questions

Work with an Inovayt broker