Borrowing / LVR Calculator

How much can you borrow based on your existing property holdings and any cash deposit?

Borrowing / LVR Calculator

Check your borrowing capacity with this LVR Borrowing Calculator! If you’ve owned your existing home or investments for a while, chances are they’ve increased in value. The average capital growth rate in residential property is around 7% per year, but this varies wildly with property market booms, busts, and recoveries.

When your property value grows (and your debt doesn’t) you increase your equity. You can then leverage this increased equity to buy more property! But how much can you borrow, how much can you buy?

This depends on what banks are willing to lend on property. Around 2006 (right before the global financial crisis), some banks were willing to lend up to 105% for the purchase of an investment property – yes, no deposit and additional cash on top for renovations!

The Reserve Bank sets the rules for the mainstream banks, and started imposing Loan-to-Value-Restrictions (LVRs) in 2013, limiting how much the banks can lend based on the value of a property portfolio. This started at 80%, then was varied to 60% and 70%, and removed entirely (temporarily) in April 2020 due to COVID-19. But banks still set their own lending limits which are presently between 60-80%. You will need to know your banks lending preference to complete this form.

The LVR Borrowing Calculator below allows you to enter information about your property portfolio, and gives an approximation of current LVR status, total available borrowing, and the maximum value of property you could use this to purchase.

None of the information you enter in this form is kept by AAT Accounting, it all disappears when you close the page. But feel free to take a screenshot to share with your mortgage broker, significant other, or us via email.