How much of the home
would you borrow?
Two numbers to start. See your deposit, loan and LVR.
Share of the property value borrowed
This is your loan-to-value ratio, or LVR.
Bar shows the deposit and price funded by borrowing, before added loan costs.
An LVR is not a borrowing limit, loan approval or LMI waiver. Lender rules and valuations vary. Understand LVR & LMI →
What this calculation includes
Loan = home price − deposit towards the price + financed costs. LVR = loan ÷ lender valuation × 100. A blank valuation uses the home price. The extra amount shown for 80% is loan − 80% of that valuation, with a minimum of zero.
The bar separates your deposit from the price funded by a loan. It does not represent ownership shares or the bank’s valuation. LVR uses the full loan including any financed costs. Purchase costs, repayments, grants, LMI premiums and scheme eligibility are not calculated.
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Home loansDoes an offset account reduce what I owe?
Money in a full offset reduces the loan balance used to calculate interest. Your debt remains separate from the offset cash, and spending that cash reduces the interest benefit.
For exampleA hypothetical $500,000 loan with $30,000 in a full offset is charged interest on $470,000. The debt is still $500,000.
Explore a mortgage and offset scenarioHome loansHow is an offset different from extra repayments?
Offset money stays in a separate account linked to the loan. An extra repayment goes into the loan and reduces the debt; getting it back through redraw depends on the lender’s terms.
Read the offset and extra-repayment guideHome loansIs an offset always worth its extra cost?
Compare the interest avoided with any higher loan rate and additional fees. Use the balance you normally keep in the offset, because a high balance on payday can overstate the benefit.
Try the offset cost comparisonHome loansWhat does LVR mean?
Loan-to-value ratio is the loan divided by the property value accepted by the lender, expressed as a percentage. A different valuation or costs added to the loan can change it.
For exampleA hypothetical $480,000 loan divided by a $600,000 lender valuation gives an 80% LVR.
Calculate your deposit and LVRHome loansDoes a deposit or LVR result mean a lender will approve me?
Lenders also check income, expenses, debts and other application details. Howloop’s LVR calculator shows the borrowing share only; it does not approve a loan, quote mortgage insurance or decide scheme eligibility.
Understand LVR and mortgage insuranceNo questions match this search. Try a shorter word, or choose Show all to see every question.
Your numbers, in real life
A 20% deposit does not always mean 80% LVR.
You pay $800,000 and put in $160,000. The $640,000 loan stays the same, but the lender may value the home differently.
LVR = loan ÷ lender valuation × 100
- Valued at $800,000
- 80.0%
- Valued at $760,000
- 84.2%
- Extra deposit for 80%
- $32,000
$640,000 ÷ $800,000.
$640,000 ÷ $760,000.
On the lower valuation, before added loan costs.
Use the lender’s valuation when checking LVR. The sale price alone may give you a different answer.
Buying costs are excluded. An 80% LVR does not guarantee approval or an LMI waiver; lender and scheme conditions differ.
Understand LVR and mortgage insurance