Compare the best LVR home loans^ in Australia

Find home loans from a wide range of Australian lenders that best suit your needs, whether you're investing, refinancing or looking to buy your first home. Compare interest rates, mortgage repayments, fees and more. - Last updated on 21 Oct 2019

Compare best lvr home loans

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  • Well Home Loans : Well Balanced

    2.82% p.a. Advertised Rate. 2.86% p.a. Comparison Rate*. Extra low interest rate for refinancers. No ongoing fees. 100% full offset account. Extra repayments + redraw services.
  • loans.com.au : Smart Home Loan

    2.88% p.a. Advertised Rate. 2.90% p.a. Comparison Rate*. Extra low interest rate for refinancers. No ongoing fees. Extra repayments + redraw services. Free redraw facility.
  • Aussie : Activate Prime Full Doc

    3.09% p.a. Advertised Rate. 3.12% p.a. Comparison Rate*. Extra low interest rate for refinancers. No ongoing fees. 100% full offset account. Extra repayments + redraw services.
  • Hume Bank : Flexi Low Rate

    3.24% p.a. Advertised Rate. 3.24% p.a. Comparison Rate*. Extra low interest rate for refinancers. Extra low interest rate for new customers. No upfront or ongoing fees. Suitable for low deposits.

Best LVR home loans*

When you're examining options to finance your new home, you need to not only take the time to explore those options in depth but also to be absolutely clear as to what you are taking on in the form of a loan. Mortgages are a familiar concept for anyone who wants to buy or has already bought a property, but how do mortgage companies make the decisions as to whom they will lend and how much they will permit you to borrow? Some of the terminology can be tricky if finance is not your field (and for most people, it isn't), but you can learn enough to get a broader understanding of what everything means. One of these aspects is the term LVR, and when you know about that, it will make your decision-making when negotiating a loan easier.

What are the best LVR home loans?

Firstly, you need to be clear about what LVR means. In basic terms, a mortgage company will look at the value of the home you want to buy, how much you want to borrow to buy it, and what level of deposit you will be putting forward to try to secure it. LVR means Loan to Value Ratio and relates to the property's purchase value in proportion to how much money you require from the lender.

As an example, let's say you want to buy a house valued at $400,000 and you have a deposit of $100,000 to put down. Therefore you want to ask the lender for £300,000, so the relationship between $300,000 and $400,000 is 75% ($300,000/$400,000) – that's your LVR. LVR rates differ depending on the home valuation and how much money you can place as a deposit. A 75% LVR is below the 80% that is generally the minimum that most loan providers will lend on, though you may discover ones that will go for 85% or 90%. However, as the risk is greater for lenders with higher LVR loans, you'll pay more in terms of your interest rates and, quite likely, your set-up costs.

How do these types of loans compare with others?

It's important to remember that these are mortgages to enable you to buy a home. You should do plenty of research to get useful comparisons because companies differ in what they will offer when looking at LVR. The bigger deposit you have, the more likely you are to get an attractive interest rate from the start because your LVR percentage is lower. If you have an LVR below 80% you will usually have to have lenders' mortgage insurance, a one-off payment that protects your lender in case you default.

What risks are associated with these loans?

When you take out a loan make sure you are able to pay it back in the agreed instalments. If personal circumstances change and you are unable to make the repayments for a time you must talk to the lender. Lenders would much rather you paid back less on a regular basis than defaulting completely.

*The phrase ‘some of the best’ is not a recommendation or rating of products. This page compares a range of home loans from selected providers, not all products or providers are included in the comparison. No home loan is one size fits all. The best home loan for you will not be the best home loan for someone else. As a result, it's worth getting advice on whether a product is right for you before committing. 

Mark Bristow is a senior financial writer for RateCity. Working for over ten years, Mark previously wrote and researched commercial real estate at CoreLogic, consumer technology at Appliances Online, and most recently, personal finance for RateCity. Whatever the topic, Mark’s goal is always to provide simple solutions to complex problems.


^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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