Finance & business New Zealand
LVR Calculator New Zealand
The loan-to-value ratio (LVR) compares your loan with the value of the property. It sets the price of your loan and decides whether extra costs apply. This calculator works out your LVR, your deposit and how much more deposit gets you to 80%.
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Loan to value ratio
—Deposit as a share of value
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Deposit in dollars
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Loan to reach the target
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Extra deposit to reach the target
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The working
An estimate, not advice. General information and estimates only, not financial advice. Rates, fees and rules change, so check the lender's or provider's own terms and speak to a licensed adviser before you act.
How do I calculate LVR?
Divide the loan by the property's value. A $560,000 loan on a $700,000 property is an LVR of 80%, which means a deposit of 20%. New Zealand banks set low-equity rules under the Reserve Bank's loan-to-value limits, and borrowers with a deposit under 20% often pay a low-equity margin or fee.
Why 80% matters
At or below 80% most lenders offer their best rates and do not require extra insurance or margins. Above it, costs rise. New Zealand banks set low-equity rules under the Reserve Bank's loan-to-value limits, and borrowers with a deposit under 20% often pay a low-equity margin or fee.
Each lender's thresholds differ, and some use 90% and 95% bands too.
Ways to lower it
Save a larger deposit, buy a cheaper property, add a guarantor or use your existing equity as security. Rising property values also lower your LVR on an existing loan.
To see the repayments, use the mortgage calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
LVR = loan ÷ property value × 100deposit % = 100 − LVRloan to reach a target LVR = value × targetextra deposit needed = loan − loan at the target
Lenders use the lower of the purchase price and their valuation, so a valuation below the price can lift your LVR even though you bought at the contract price. New Zealand banks set low-equity rules under the Reserve Bank's loan-to-value limits, and borrowers with a deposit under 20% often pay a low-equity margin or fee.
Equity works the same way once you own the property: it is the value less the loan, and a falling LVR as you repay or as values rise widens your options when refinancing.
A worked example
A $700,000 property with a $600,000 loan.
- LVR85.7%
- Deposit$100,000, 14.3%
- Loan at 80%$560,000
- Extra deposit needed for 80%$40,000
An LVR of 85.7%.
A valuation below $700,000 would raise it.
Valuations
A bank valuation can differ from the price, especially in a fast market. Ask your lender how they value the property and whether you can contest it.
What it leaves out
Insurance premiums and rate margins differ by lender and are not calculated.
What this calculator does not do
- Simple ratio only
- Lender thresholds differ
- No insurance cost
- Uses your valuation figure
Common questions
What is LVR?
Loan amount divided by property value, as a percentage.
What LVR do I need to avoid extra costs?
Usually 80% or less.
Does the valuation or price count?
The lower of the two.
How is deposit related to LVR?
Deposit % = 100 − LVR.
Can LVR change after purchase?
Yes, as you repay the loan or the property value changes.
Where these numbers come from
- Sorted — Retirement Commission money guidance Independent guidance and calculators on saving, borrowing and investing
Method last reviewed 2026-10-28 This calculator uses fixed rules rather than rates that change, and its method is re-checked against the sources above at least once a year. Out of date? Tell us and we will fix it.
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