Find the best Home Loan for you
The calculator below helps you determine the interest rate and loan repayment based on your loan amount and product selection. Please speak to an accredited Regional Australia Bank lender to ensure the product you select aligns with your financial goals. The calculator is intended as a guide to help you better understand your options.
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What is LVR?
Navigate your home financing journey confidently with our LVR (Loan-to-Value Ratio) guide
Understanding LVR: A Strategic Approach to Home Finance
This comprehensive guide to LVR (Loan to value Ratio) empowers you to make informed decisions that pave the way for a secure financial future..
What is LVR?
The Loan-to-Value Ratio (LVR) is the ratio of your loan amount to the property's appraised value. It significantly influences your borrowing capacity and the terms offered by lenders.
LVR is a key metric used by lenders to determine the financing needed for a property. It is expressed as a percentage of the loan amount relative to the property's value.
Calculating LVR
To calculate LVR, divide your loan amount by the appraised value of the property and multiply by 100. For example, a $400,000 loan on a $500,000 property results in an LVR of 80%.
Impact of LVR on Homeownership:
Interest Rates:
A lower LVR generally leads to reduced interest rates as lenders view such loans as less risky, potentially lowering your costs..
Borrowing Power:
A lower LVR can expand your property options and improve your chances of securing your ideal home..
Lender's Mortgage Insurance (LMI):
An LVR above 80% may require you to pay LMI, which protects the lender in case of loan default.
Strategies Optimising LVR
Increase Your Deposit
A higher deposit reduces LVR and may result in better loan options..
Obtain a Property Valuation
An updated property valuation may lower your LVR and may offer additional financial flexibility.
Make Extra Repayments
Additional payments on your existing loan may fast track your LVR reduction.
For personalised advice tailored to your specific circumstances, consult a financial specialist.
