Understanding 70% LVR
A 70% loan-to-value ratio means the loan represents 70% of a property's value. Learn how to calculate 70% LVR and understand what it means for loan amounts, deposits, equity and refinancing.
What does 70% LVR mean?
LVR compares a loan amount with the value of the property securing the loan.
A 70% loan-to-value ratio
A 70% LVR means the loan amount is equal to 70% of the property's value.
The remaining 30% represents the mathematical difference between the property's value and the loan amount.
For example, a property valued at $500,000 with a $350,000 loan has an LVR of 70%.
70% LVR Formula
To calculate a loan amount at a target LVR of 70%, multiply the property value by 0.70.
How is 70% LVR calculated?
Once you know the property value and loan amount, calculating LVR is straightforward.
Divide the loan amount by the property value and multiply by 100:
Calculate the loan amount at 70% LVR
Enter a property value to see the corresponding 70% loan amount and 30% difference.
How much is a 70% loan?
At a target LVR of 70%, the loan amount is 70% of the property value.
The remaining 30% is the mathematical difference between the property value and loan amount.
This calculation is illustrative and does not indicate lending approval or borrowing capacity.
70% LVR examples by property value
The LVR remains 70%, while the corresponding loan amount changes with the property value.
| Property Value | 70% Loan | 30% Difference |
|---|---|---|
| $300,000 | $210,000 | $90,000 |
| $400,000 | $280,000 | $120,000 |
| $500,000 | $350,000 | $150,000 |
| $600,000 | $420,000 | $180,000 |
| $750,000 | $525,000 | $225,000 |
| $1,000,000 | $700,000 | $300,000 |
What does 70% LVR mean for a deposit?
At a 70% LVR, the loan represents 70% of the property's value and the mathematical difference is 30%.
Example property value.
70% of the property value.
30% of the property value.
The 30% difference is a mathematical calculation based on the property value and loan amount. It should not automatically be treated as the complete cash required to purchase a property because taxes, legal costs, valuation charges, insurance, fees and other expenses may also apply.
Explore Deposit Calculations →70% LVR and equity
If the outstanding loan equals 70% of the property's current value, the mathematical difference is 30%.
Suppose a property is currently valued at $500,000 and the outstanding loan balance is $350,000.
In this simplified example, the difference represents 30% of the property's value.
Calculate Your Equity →Equity can change over time
Equity depends on the relationship between the property's current value and outstanding debt.
If the property value changes or the loan balance is reduced, the resulting LVR and equity position can change.
Use current property values and loan balances when making an updated calculation.
70% LVR when refinancing
A proposed refinance loan can also be expressed as an LVR based on the property's current value.
Example
If a property is valued at $800,000 and the proposed new loan is $560,000:
Refinancing is more than an LVR calculation
A 70% LVR describes the relationship between a proposed loan and property value. It does not guarantee refinance approval, pricing, fees or any particular lending outcome.
Compare Refinance LVR →Is 70% LVR considered a good LVR?
Whether a 70% LVR is suitable depends on the borrower's circumstances, property, loan and applicable lending criteria.
A 70% loan position
At 70% LVR, the loan represents 70% of the property's value, while the difference between the two figures is 30%.
This gives borrowers a useful reference point when comparing different LVR levels.
LVR is only one factor
Lenders may consider income, expenses, credit history, loan type, property characteristics, debt levels and other applicable criteria.
70% LVR compared with other levels
Comparing percentages can make it easier to understand how loan amounts change as LVR changes.
Related LVR guides
Explore the fundamentals behind loan-to-value calculations and related lending concepts.
Key terms related to 70% LVR
These terms can help you better understand LVR calculations and property financing.
70% LVR FAQs
What does 70% LVR mean?
A 70% LVR means the loan amount is equal to 70% of the property's value. The mathematical difference between the property value and loan amount is 30%.
What is 70% LVR on a $500,000 property?
A 70% LVR on a $500,000 property corresponds to a $350,000 loan because $500,000 × 0.70 equals $350,000.
What is the deposit for a 70% LVR?
In a simplified calculation, a 70% loan means the mathematical difference is 30% of the property value. Actual cash required to complete a property purchase can be different because additional costs may apply.
What is the difference between 70% LVR and 60% LVR?
At 70% LVR, the loan represents 70% of the property's value. At 60% LVR, it represents 60%. For the same property value, a 70% LVR therefore corresponds to a larger loan amount.
How much equity is represented by 70% LVR?
If the outstanding loan produces a 70% LVR, the mathematical difference between the loan and property value is 30% of the property value. Actual equity should be calculated using the current property value and outstanding balance.
Can I refinance at 70% LVR?
A proposed refinance loan can have a 70% LVR if the new loan amount equals 70% of the property's current value. Whether refinancing is available depends on applicable lending criteria and the individual circumstances.
What is your current LVR?
Enter your property value and loan amount to calculate your current loan-to-value ratio.
Calculate My LVR →