Enter your property value and loan to see your loan to value ratio, how it changes with new borrowing, and how much equity you could use.
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Home › Calculators › LVR and Usable Equity Calculator
LVR is your loan divided by the property value, shown as a percentage. Add extra borrowing and the calculator adds it to the loan before dividing again, which is what a lender sees after a top-up or a new investment split on the same property.
Usable equity is the lending limit, 80% or 90% of value, minus what you owe. Illustrative figures:
| Step | Illustrative figure |
|---|---|
| Property value | $800,000 |
| Current loan | $480,000 |
| Current LVR | 60% |
| Usable equity to 80% | $160,000 |
| Usable equity to 90% | $240,000 |
Equity on paper is value minus loan: $320,000 in the example. Usable equity is smaller because lenders cap borrowing at a share of value. Above 80%, many lenders charge lenders mortgage insurance (LMI), which adds to the cost of the borrowing.
Most people recycle within the 80% line. Our guide to how much equity you need for debt recycling explains why you can start small.
Use a conservative value. If the valuation comes in lower, both your LVR and your usable equity change with it.
If your LVR is already above 80%, or usable equity is small, recycling from equity may not suit yet. Borrowing to invest at a high LVR leaves little buffer if values fall, and LMI adds to the cost the investment has to beat.
Recycling from savings can still work at a higher LVR, because it pays the home loan down first and borrows back only what was repaid, so total debt does not rise.
If your LVR sits near 80%, a refinance for debt recycling review can show whether a new valuation changes the picture.
Alex can check your loan, your equity and your borrowing capacity, and tell you what the lending side would look like.
Request a call with Alex →For borrowing, 80% or below is the line most people aim for, because many lenders charge LMI above it. Lower is better for choice of lender and buffer against falling values. For debt recycling from equity, a current LVR comfortably under 80% leaves room to set up an investment split without LMI.
Yes. Lenders count every loan secured by the property, so a home loan split and an investment split on the same home are added together. Recycling from savings keeps the total the same, but drawing new equity to invest raises your LVR. Use the extra borrowing field to see the figure after a new split.
For context. Some lenders will lend above 80%, usually with LMI and tighter rules, so the 90% figure shows the outer limit. Borrowing to invest in that band adds cost and leaves little buffer if values fall, so most people treat the 80% figure as their working number.
See the cash flow on equity or savings you recycle into investments.
Read more → RESOURCECheck equity, income and buffers before you set anything up.
Read more → SERVICEHow lenders assess releasing equity to buy or invest.
Read more →
1. Arranged a loan when our small business situation made it difficult to qualify.
2. Met requirements to have funding available by a specified date.
3. Understood my needs to setup debt recycling to allow tax structuring.
4. Communicated well throughout.
I would use their services again.
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Jess from Kingfisher was outstanding. I couldn't fault her communication, expertise or dedication to finding the best loan for our situation. The entire process was seamless from start to finish. We'll definitely be using Kingfisher again in the future. A top-tier organisation.
