Input
Loan amount
The amount borrowed, which may include capitalised costs depending on the scenario.
Deposit and LMI
LVR and LMI explained for home buyers
LVR and LMI can affect deposit planning, lender choice, repayments and the cash you need before settlement.
- LVR calculation
- LMI purpose
- Deposit impact
Which LVR or LMI question are you checking?
Choose the question closest to your deposit position.
Next check: LVR
What LVR means
LVR is a planning ratio lenders use when looking at loan amount compared with property value or valuation.
May suitBorrowers comparing deposit size or purchase price.
WatchThe lender valuation can differ from the purchase price or your estimate.
Check first
- Purchase price
- Loan amount
- Valuation
- Deposit source
Useful tools
CalculatorLMI calculatorA broker can check how different lenders may treat the LVR and deposit source.
LVR formula
LVR is simple arithmetic, but the inputs still need checking.
The planning formula is loan amount divided by property value, expressed as a percentage. The lender may use its own valuation and policy rules.
Input
Property value
The contract price or lender valuation. A lower valuation can change the LVR.
Convert
100
Convert the ratio into a percentage for planning.
Result
LVR
The loan-to-value ratio lenders use when checking policy and risk.
Then check
Possible LMI
LMI may apply above lender thresholds, but it protects the lender and does not confirm approval.
What to check before relying on an LVR or LMI estimate
The ratio is simple. The lending outcome is not always simple.
Use the lender valuation
A lender may use its own valuation, which can change LVR and LMI.
Separate deposit from costs
Stamp duty, legal costs, inspections, fees and buffers sit outside the deposit question.
Know who LMI protects
LMI protects the lender. It does not remove your obligation to repay the loan.
Check lender variation
LMI, deposit and policy requirements can vary by lender, purpose, property and borrower.
Deposit position
The ratio is simple. The lending result is not.
LVR and LMI estimates are useful only when they are checked against valuation, deposit source, cash to complete and lender policy.
Use this page if
- Your deposit or equity is less than 20 percent of the purchase price.
- You need to understand how valuation can change the lender's LVR.
- You are comparing low-deposit, LMI or save-longer pathways.
Prepare before review
- Purchase price, estimated value, loan amount and deposit source.
- Cash for buying costs, possible LMI and buffer after settlement.
- Loan purpose, property type and any scheme or guarantor questions.
Do not assume
- LMI protects the borrower or means credit will be approved.
- The lender valuation will match the contract price.
- The same 80 percent threshold works the same way for every lender or borrower.
Check before you rely on it
LMI rules are not universal
Avoid treating one threshold or calculator as a final lending answer.
- LMI usually protects the lender, not the borrower.
- Requirements vary by lender and situation.
- A low-deposit pathway does not guarantee approval.
Tools for LVR, LMI and deposit planning
Use estimates to prepare the broker conversation, not to decide approval.
CalculatorLMI calculatorEstimate the deposit gap and repayment impact when the deposit is below the usual 20 percent benchmark.Best forUnderstanding the trade-off between buying sooner and contributing a larger deposit.Estimate only. A broker still needs to check lender policy and fit.Open calculator CalculatorBorrowing power calculatorEstimate a practical borrowing range before narrowing a property search or pre-approval conversation.Best forEarly budget setting before a buyer gets attached to a price range.Estimate only. A broker still needs to check lender policy and fit.Open calculator CalculatorUpfront buying costs calculatorBring deposit, duty, legal costs, lender fees, moving costs, and settlement cash into one planning view.Best forChecking whether the cash-to-complete picture is realistic before inspections or offers.Estimate only. A broker still needs to check lender policy and fit.Open calculator Start HereLow deposit buyersReview deposit source, LMI and scheme questions.Open
Common questions
LVR and LMI questions
How is LVR roughly calculated?
A simple planning estimate is loan amount divided by property value, expressed as a percentage. Lenders may use their own valuation.
Who does LMI protect?
LMI protects the lender, not the borrower. The borrower may pay the cost, but it does not remove the repayment obligation.
Does paying LMI mean I will be approved?
No. LMI does not guarantee approval. Lenders still assess income, expenses, debts, documents, property, credit history and policy.
Should I avoid LMI at all costs?
Not automatically. The right decision depends on deposit, timing, repayments, buying costs, lender policy and how much buffer you keep.
Broker review
Check the LVR and LMI path before you rely on it
A broker can review deposit, costs, lender policy and documents before you choose a low-deposit pathway.