What is LVR and how is it calculated?

LVR (loan-to-value ratio) is your loan balance divided by your property's value, as a percentage. On an $850,000 home with a $550,000 loan, your LVR is about 65%. Lenders use LVR to gauge risk — under 80% you usually avoid Lenders Mortgage Insurance and can more easily access equity; above 80% you typically pay LMI to borrow more.

How much equity can I access?

Total equity is your property value minus your loan. But lenders usually only release 'usable equity' — up to 80% of the value minus your current loan — without charging LMI. On an $850,000 home with a $550,000 loan, 80% is $680,000, so usable equity is about $130,000. Accessing it still depends on you being able to afford the larger loan.

Can I use my equity to buy an investment property?

Yes — many investors use the usable equity in their home as the deposit (and costs) on an investment property, often without selling anything. The bank lends against your existing equity and the new property. It increases your total borrowing, so the lender will assess whether you can service both loans, and you take on more risk.

LVR & Home Equity Calculator

Work out your loan-to-value ratio (LVR), your total equity, and the usable equity you could access (to 80% LVR) — for a renovation, an investment property, or just to know where you stand.

Last verified: 5 May 2026

How much equity do I have in my home?

Total equity is your home's value minus your loan. But lenders release usable equity — up to 80% of the value minus your loan — without charging LMI. Under 80% LVR you can usually access it; above 80% you can't (or you pay LMI). Source: ASIC MoneySmart.

Worked example. An $850,000 home with a $550,000 loan = a 65% LVR and $300,000 total equity. Usable equity (80% of $850k − $550k) is about $130,000— enough for a deposit on an investment property.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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