Construction Loan LVR Calculator
Your Loan-to-Value Ratio (LVR) determines whether LMI applies, which lenders will consider your application, and the interest rate you'll be offered. For construction, LVR = loan ÷ (land + build cost).
Construction Project Details
Total project value: $800,000
Include stamp duty in deposit requirement
Your LVR
Moderate LVR
20% deposit
LMI required. Still well within most lenders' construction loan policies.
LVR = loan ÷ property value (stamp duty excluded from LVR denominator)
Deposit milestones
Construction loans above 80% LVR
Not all lenders do construction above 80%. A broker can match you to lenders who will — some go to 95% with LMI for construction.
LVR thresholds for construction loans
Construction loans have stricter LVR policies than standard mortgages at some lenders. Here's what each threshold means:
| LVR | LMI? | Lender options |
|---|---|---|
| ≤ 80% | None | All major lenders, best rates |
| 80–85% | Required | Most lenders, good rates |
| 85–90% | Required | Most majors, slightly higher rates |
| 90–95% | Required | Fewer lenders — NAB, St George, Macquarie (some products) |
| > 95% | Not available | No mainstream lenders — not viable for construction |
How LVR is calculated for construction
For a standard home purchase, LVR = loan ÷ purchase price. For construction, it's loan ÷ (land value + build contract price). Stamp duty is paid upfront from your deposit and doesn't increase the loan — but it reduces your effective deposit available for the LVR calculation.
Related calculators
General advice only. LVR thresholds and lender policies are indicative and subject to change. LMI rates vary by insurer and lender. Verify current policies with your lender or broker.