FREE LVR TOOL
Loan to Value Ratio Calculator
Work out your loan-to-value ratio, the size of your loan compared to the value of the property, and see how it sits against the threshold banks lend to. Enter the property value and your loan amount, choose whether you are an owner-occupier or investor, and the calculator shows your LVR, your deposit, and how much headroom you have.
Takes under a minute | Have your mortgage information ready
COMMON QUESTIONS
Your loan-to-value ratio is the size of your loan compared to the value of the property, shown as a percentage. You work it out by dividing the loan amount by the property value and multiplying by 100. On a $900,000 property with a $675,000 loan, the LVR is 75%, and you own the other 25% as deposit or equity. The lower your LVR, the more of the property you actually own, which lenders treat as lower risk.
Divide the loan amount by the property value, then multiply by 100. On a $900,000 property with a $675,000 loan, that is 675,000 divided by 900,000, which gives 75%. The flip side is your deposit or equity: the property value minus the loan, which here is $225,000, or 25% of the value. If you are buying, the loan is the purchase price minus your deposit. If you already own the property, use its current market value and your remaining mortgage balance.
Banks generally lend to owner-occupiers up to 80% LVR without extra cost, which is why most aim for at least a 20% deposit. At an 80% LVR, the maximum loan on a $900,000 property is $720,000. Borrowing below that threshold gives you headroom, room to borrow more and still stay within standard lending. Lending above the threshold is possible but harder to get and usually more expensive.
Lending is grouped into pricing bands by LVR. At or below the threshold you get standard rates and full lender choice with no extra fees. Above it, lenders typically add a low equity premium, sometimes called a low equity margin, an extra fee or interest margin charged to offset the higher risk. Some banks add it as a one-off fee, others as an ongoing margin on your rate. The higher your LVR, the fewer lenders will consider the loan. A lower LVR does not just decide whether you can borrow, it decides what you pay.
Yes. The calculator lets you switch between owner-occupier and investor because the thresholds differ. The Reserve Bank generally expects owner-occupiers to have at least a 20% deposit, an 80% LVR. Investors buying an existing property generally need at least a 30% deposit, a 70% LVR, because the Reserve Bank treats investor lending as higher risk to the financial system.
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Banks are allowed to do a limited share of their lending above these thresholds, known as a speed limit, so being above the line does not always mean an automatic no. But it does mean you are competing for a small portion of the bank's lending. New builds are exempt from these restrictions, which is why they can often be bought with a smaller deposit. These settings are set by the Reserve Bank and change over time.
This calculator shows your LVR against the general lending thresholds. Banks calculate LVR against their own registered valuation, which can differ from the price you agree to pay, so your bank's figure may not match. LVR is also only one of the Reserve Bank's lending rules. Since 2024, debt-to-income limits apply as well, which cap borrowing against your income separately from your deposit, and a lender assesses both. This calculator does not assess serviceability, whether your income can support the loan, which is a separate test. It uses general thresholds rather than the exact policy of any one lender. Treat the result as a guide, not a lending decision.
Figures are indicative only and general in nature. They do not take your personal circumstances into account and do not constitute lending or financial advice. Interest rates, lender criteria, and serviceability requirements change over time and vary by lender. Rate data is sourced from ratesapi.nz and may not reflect the rate available to you.