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
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.
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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.