How lenders generally read the ratio. Your LTV is shown for comparison.
LTV band
What it usually means
60% and below
Strongest tier — best rates, lowest risk
61% - 80%
Standard tier — good rates, usually no mortgage insurance
81% - 90%
Higher risk — mortgage insurance and pricier rates common
91% - 95%
High LTV — limited products, stricter conditions
Your LTV: 80.00%
At or below the 80% insurance threshold
Estimates only — not financial, tax, or professional advice.
100% private — every number you enter is calculated in your browser and never sent to our servers.
What it calculates: Loan-to-Value (LTV), Equity Percentage, Loan Amount, Equity Amount.
Updated 5 June 2026 · Transparent assumptions
80% and 75% are different products; 80.5% and 80% are very different prices
A $240,000 loan on a $300,000 property is 80% LTV with $60,000 of equity. Lenders price in bands — commonly 60%, 75%, 80%, 85%, 90%, 95% — and the rate steps down at each threshold rather than improving smoothly. Landing at 80.5% is priced as the 85% band, so the last half-point costs a full step.
That makes the arithmetic worth doing before applying. Finding another $1,500 of deposit to cross from 80.5% to 80% can be worth far more over the term than the $1,500 itself, and it is one of the few points in a mortgage application where a small sum has a disproportionate effect.
At 80% on a $300,000 valuation, the maximum loan is $240,000
The mode toggle reverses the calculation. Given a valuation and a target LTV, the maximum loan is simply the valuation multiplied by the LTV. That is the figure to work from when you know which band you want to be in and need to establish how much deposit it requires.
It is also how remortgage decisions are usually framed. A property that has appreciated since purchase may now sit in a lower LTV band at the same outstanding balance, which can unlock a better rate with no repayment at all — worth checking whenever local prices have moved.
A down valuation raises LTV without anything else changing
LTV is computed against the lender\u2019s own valuation or the purchase price, usually whichever is lower. A property agreed at $300,000 but valued at $285,000 produces an LTV of 84% rather than 80% on the same loan, which can move the application into a worse band or fail it outright.
The usual responses are to increase the deposit to restore the band, renegotiate the price toward the valuation, or challenge the valuation with comparable evidence. None is pleasant, and all of them are easier if the original LTV had some margin rather than sitting exactly on a threshold.
Affordability, and the second charge behind it
LTV measures the loan against the asset; it says nothing about whether you can afford the payments. Lenders apply a debt-to-income test alongside it, and a strong LTV with weak affordability fails just as surely as the reverse.
Where a second charge exists — a home equity loan or line — lenders look at combined LTV across both, which is what constrains further borrowing. A first mortgage at 60% LTV with a second charge taking the combined figure to 88% is priced as an 88% position, not a 60% one.
Sources & References
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Results are estimates based on the figures you enter and standard formulas. Rates, fees, taxes, and lender terms vary and change over time, so confirm important numbers with your lender or a qualified professional. This is educational information, not financial advice.
Published the calculator with its formula, worked example, assumptions, limitations and a bespoke guide, and added an automated formula test suite covering it.
Tested both directions — LTV from a loan, and the maximum loan at a target LTV — so the two modes cannot disagree on the same property.
Show it to your clients, not just tell them
Mortgage brokers, accountants, and advisors embed this to walk clients through the numbers live — nothing they enter ever leaves their browser.