What is LVR in Australian mortgages?

LVR stands for loan-to-value ratio — the loan amount as a percentage of the property's purchase price. For example, a $720,000 loan on an $800,000 property has an LVR of 90%. Lenders cap LVR based on property type and whether the borrower will live in the property. LMI (lenders mortgage insurance) is payable when LVR exceeds 80%.

What is the maximum LVR for a home loan in Australia?

Maximum LVR limits at mainstream lenders are: owner-occupier house or townhouse — 95%; owner-occupier apartment — 90%; investor house or townhouse — 90%; investor apartment — 80%. LMI is required above 80% LVR. The First Home Guarantee scheme allows eligible first home buyers to borrow at 95% LVR without paying LMI.

What LVR avoids LMI in Australia?

An LVR of 80% or below avoids LMI entirely. This means a 20% deposit on the purchase price, before accounting for stamp duty and fees. For example, to avoid LMI on an $800,000 property, you need a $160,000 deposit plus stamp duty and fees — approximately $191,000 in NSW or $203,000 in VIC.

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GetReal — Methodology

LVR limits

v1.0 — January 2025

LVR (loan-to-value ratio) is the loan as a percentage of the purchase price. Lenders cap LVR based on property type and whether the buyer will live there. LMI is payable when LVR exceeds 80%.

LVR determines how much of a property's value a lender will fund. The higher the LVR, the more risk the lender takes on — so they charge LMI as protection above 80%, and cap the LVR outright at a maximum. GetReal applies these limits as Ceiling 1 (deposit ceiling).

LVR = loan_amount ÷ purchase_price × 100 // LMI applies when LVR > 80% // Ceiling applied: effective LVR (incl. capitalised LMI) ≤ max_LVR

Property type	Owner-occupier max LVR	Investor max LVR
House	95%	90%
Townhouse	95%	90%
Apartment	90%	80%

These are practical market maximums at mainstream lenders. Individual lenders may apply stricter limits — particularly for apartments in high-density postcodes, small apartments under 50m², studio apartments, or properties in regional areas with limited comparable sales.

LMI capitalisation

When LMI is added to the loan balance (capitalised), GetReal ensures the resulting LVR including LMI does not exceed the ceiling. A 95% ceiling means the total loan including capitalised LMI is at most 95% of the purchase price.

Example — 90% LVR with LMI capitalised

Purchase price: $700,000 Base deposit: $70,000 (10%) Base loan: $630,000 (90% LVR) LMI rate (90.01–95%): 2.77% LMI premium: $630,000 × 2.77% = $17,451 Total loan: $647,451 Effective LVR: $647,451 ÷ $700,000 = 92.5% // LVR check: 92.5% ≤ 95% ceiling — viable for OO house ✓

First Home Guarantee: Eligible first home buyers can borrow up to 95% LVR without paying LMI, with the federal government guaranteeing the difference. GetReal does not currently model this scheme — if you're eligible, your ceiling may be higher.

↗ First Home Guarantee — Housing Australia