Broker guide
Maximum LVR: Lender and Property Limits
When checking how much of a property value a lender may fund, compare maximum LVR for home loans, investment properties and insured borrowers.
- Published
- Updated
Maximum LVR is the highest loan-to-value ratio (LVR) a lender or lenders mortgage insurance (LMI) provider accepts for a particular borrower, loan purpose and property. No single maximum applies to every loan. Under Helia’s 10 August 2026 guidelines, an insured loan can reach 95% for an owner-occupied home or an investment property, while lenders such as MyState cap uninsured loans at 80%.
The same 95% can describe two different loan sizes. Some policies count a capitalised LMI premium inside the ceiling, while others add it on top, so check what the published figure includes before you compare lenders.
Understand the Maximum LVR
The maximum LVR is the ceiling that applies to one combination of borrower, loan purpose and security, not a universal limit. An owner-occupied purchase, an investment loan with interest-only repayments and a cash-out refinance on the same house can each carry a different maximum at the same lender.
This page starts from an LVR you’ve already worked out. The loan-to-value ratio guide explains what common ratios such as 60%, 70% and 80% mean, and the LVR calculation guide walks through the formula and its inputs.
What the Ratio Measures
The denominator depends on the loan purpose. Helia’s 10 August 2026 underwriting guidelines use the lower of the purchase price and the valuation for a purchase, construction or home improvement loan. For a refinance or equity release, Helia uses the valuation alone.
The numerator is the total lending secured by that property, including every split and any top-up. MyState’s lending procedure effective 1 July 2026 also uses the lesser of the valuation and the purchase price, or of the valuation and land value plus the building contract.
How a Capitalised Premium Changes the Ceiling
Adding the LMI premium to the loan raises the LVR, so each policy has to say whether its ceiling counts the premium. The three policies below show the different answers.
| Policy and date | Owner-occupied purchase | Investment purchase |
|---|---|---|
| Helia, 10 August 2026 | 95% before the premium, with the total including the premium capped at 100% | 95% including the capitalised premium |
| MyState, effective 1 July 2026 | 95% plus the LMI premium, capped at 100% in total (principal and interest) | 95% including LMI (principal and interest) |
| Macquarie, 10 September 2026 | 95% including its capitalised low deposit fee (principal and interest) | 90% including its capitalised low deposit fee (principal and interest) |
Macquarie’s figures come from its residential credit guidelines. At Macquarie, a 95% owner-occupied loan must fit its capitalised fee inside 95%, while a MyState loan at 95% can add the premium above it.
Choose the Relevant Limit
The relevant limit comes from separating the owner-occupied, investment and insured ceilings first, then narrowing them by purpose, evidence, borrower and product. MyState’s lending procedure, effective 1 July 2026, shows how far apart those ceilings sit at one lender.
| MyState loan, residential security | Uninsured maximum | Maximum with LMI |
|---|---|---|
| Owner-occupied purchase, principal and interest | 80% | 95% plus the premium, capped at 100% |
| Owner-occupied purchase, interest only | 80% | Not available above 80% |
| Investment purchase, principal and interest | 80% | 95% including LMI |
| Investment purchase, interest only | 80% | 90% plus the premium |
| Owner-occupied equity release, principal and interest | 80% | 90% plus the premium |
Outside the 5% Deposit Scheme, MyState needs LMI from Helia on every loan above 80%, so 80% is where its high LVR lending starts. Helia’s 10 August 2026 guidelines set the insurer’s own standard ceiling at 95% for both occupancy types, so the lender’s product decides which of the lower figures applies.
Work Through the Decision in Order
Each answer narrows the ceiling before you compare lenders. Work through the six questions in this order.
- Confirm the occupancy. Investment limits and premiums differ from owner-occupied ones, even at the same lender.
- Name the purpose, whether a purchase, refinance, equity release or construction loan. Macquarie’s 10 September 2026 guidelines allow 95% for an owner-occupied purchase but 80% for equity release.
- Choose the insurance route. The loan can stay uninsured at 80% or below, use LMI or rely on an LMI waiver, guarantee or government scheme. MyState’s procedure allows 95% under the 5% Deposit Scheme’s general stream and 98% under its single-parent stream.
- Check the income evidence. Helia’s Business Select cover for self-employed borrowers without current financials stops at 80%.
- Identify the borrower type, whether a person, company, trust or self-managed super fund (SMSF). Helia insures SMSF loans to 90% including the capitalised premium, with a $1,000,000 maximum loan.
- Match the product and repayment type. At Macquarie, any interest-only portion caps the loan at 80%.
The insurance answer often changes the ceiling most. An LMI waiver or a family guarantee follows a different route to a high LVR, and the lenders mortgage insurance guide explains how the premium works.
Specialist and Investment Lenders
Specialist lenders publish their own ceilings. As at October 2026, Pepper Money’s home loans page lists loans up to 98% LVR for eligible purchases, including its Lender Protection Fee. It lists investment loans up to $3 million at 95% LVR.
Liberty’s low doc home loan page, effective 1 October 2026, lists a maximum LVR of 85%. For SMSF lending, Liberty’s SMSF loans page lists borrowing up to 90% of the property value for residential security, as at October 2026.
Some published limits show up only in rate tables. Bank Australia’s home loan rates, effective 18 September 2026, price owner-occupied Basic Home Loans above 90% LVR, but its investment rates stop at the 90% LVR tier.
A rate table also sets separate pricing tiers at lower ratios. Bank Australia’s table sets rate tiers at 60%, 70%, 80% and 90% LVR. A low LVR home loan can earn a better rate, even though it sits far below the maximum.
As at October 2026, the RAMS website serves existing customers whose loans Pepper Money now services. Its homepage lists no new home loan products, so a RAMS maximum LVR doesn’t apply to a new application.
No Market-Wide LVR Cap
The Reserve Bank of Australia doesn’t set a maximum LVR for home loans. The Australian Prudential Regulation Authority (APRA) sets macroprudential settings for banks, and its 28 May 2026 review kept a 3 percentage point serviceability buffer and a debt-to-income limit.
None of the settings APRA confirmed is an LVR cap, so each lender and insurer sets its own maximum. The debt-to-income limit lets banks write up to 20% of new lending at six times income or more.
Apply Property and Borrower Restrictions
Security type, location, income evidence and borrower profile can each cut the headline limit. Apply every restriction that fits the file, then use the lowest result.
| Restriction | Policy and date | Reduced maximum |
|---|---|---|
| High-density apartment, principal and interest | Macquarie, 10 September 2026 | 80% (70% with any interest-only portion) |
| Victorian stratum title unit | Macquarie, 10 September 2026 | 85% including the capitalised fee |
| High-risk postcode | Macquarie, 10 September 2026 | 80% |
| Category A postcode (volatile or heightened risk) | MyState, effective 1 July 2026 | 70% uninsured or 90% including LMI |
| Single-industry postcode | Helia, 10 August 2026 | 90% including the capitalised premium |
| Property above MyState’s luxury threshold | MyState, effective 1 July 2026 | 70% |
| Rural property over 10 hectares, principal and interest | MyState, effective 1 July 2026 | 70% uninsured or 90% plus the premium |
| Land over 4 and up to 10 hectares | Macquarie, 10 September 2026 | 80%, subject to its location limits |
Apartment Size, Title and Location
Small apartments face extra limits. Helia’s 10 August 2026 guidelines need at least 30 square metres of living area, not counting balconies or car space. Macquarie’s 10 September 2026 guidelines send studio and bedsitter securities to a business development manager (BDM).
Title can rule out a security altogether. In New South Wales, Victoria, South Australia and Western Australia, Helia accepts community title only once the development is complete. Bluestone’s quick policy guide, last updated 10 November 2025, lists stratum title and company title as unacceptable.
Location caps also scale with property value. Macquarie limits non-metro and regional properties above 80% LVR to $1 million in value, and treats its Category 4 locations as outside policy. The apartment loan guide, postcode restrictions guide and rural property loan guide cover each restriction in more depth.
Income Evidence, Credit History and Residency
The borrower’s profile lowers the ceiling too. Bluestone’s quick policy guide allows 90% for its Prime and Near-Prime tiers in metro areas, 85% for Specialist and 80% for Specialist+.
Bluestone places a borrower in those tiers by credit history. Its Specialist+ tier accepts discharged bankruptcy and considers paid defaults of up to $2,000 or older than 12 months, while Prime accepts paid defaults only up to $500.
At a lender that insures through Helia, residency can remove LMI and with it any loan above 80%. Helia’s guidelines list non-residents and temporary visa holders as unacceptable borrowers, apart from the spouse or de facto partner of an eligible citizen or permanent resident. The bad credit, low doc and temporary resident guides cover those borrowers.
Debt-to-income can also lower the cap. Macquarie’s guidelines apply a maximum LVR of 80% where debt-to-income is above six times, and the debt-to-income guide explains the ratio.
Compare Like for Like
A fair comparison holds one set of assumptions fixed and tests every lender’s ceiling against it. These examples use a fictional $700,000 purchase in a metro area with a standard postcode, a valuation that matches the price and principal and interest repayments over 30 years.
The borrowers are Australian citizens with full pay as you go (PAYG) income evidence and a clear credit history, and none is a first home buyer. Funds above the loan exclude stamp duty and other purchase costs, which the minimum deposit guide adds.
Lender Matrix
The matrix compares the same loan types across three policies, each dated to its source.
| Loan type | Helia (insurer), 10 August 2026 | Macquarie, 10 September 2026 | MyState, effective 1 July 2026 |
|---|---|---|---|
| Owner-occupied purchase | 95% before the premium | 95% including its fee | 95% plus the premium, capped at 100% |
| Investment purchase | 95% including the premium | 90% including its fee | 95% including LMI |
| Investment, interest only | Not listed separately in its Standard LMI table | 80% | 90% plus the premium |
| Refinance | Standard limits, measured on the valuation | 90% including its fee | 95% plus the premium for owner-occupied loans without cash out, capped at 100% |
| Equity release | Standard limits, measured on the valuation | 80% | 90% plus the premium for owner-occupied loans |
A maximum LVR shows only how much of the property value a lender might fund. It doesn’t establish serviceability or approval, and the loan serviceability guide covers whether your client can repay the loan.
Worked 90% and 95% Examples
The premiums below are Helia’s estimates from its LMI fee estimator, as at October 2026, including goods and services tax (GST). They apply to MyState because it insures through Helia, and they leave out the state duty on the premium. Helia sets the actual premium when the lender applies.
| Scenario at MyState | Base loan | Helia premium estimate | Total loan if capitalised | Total LVR | Funds above the loan |
|---|---|---|---|---|---|
| Owner-occupied, 90% | $630,000 | $14,617 | $644,617 | 92.09% | $70,000 |
| Owner-occupied, 95% | $665,000 | $26,397 | $691,397 | 98.77% | $35,000 |
| Investment, 90% | $630,000 | $16,085 | $646,085 | 92.30% | $70,000 |
| Investment, 95% with the premium paid in cash | $665,000 | $29,062 | Not capitalised | 95.00% | $64,062 |
| Investment, base loan cut to fit 95% | $641,000 | $23,474 | $664,474 | 94.92% | $59,000 |
The owner-occupied 95% loan fits because MyState lets the premium sit above 95%, up to 100% in total. Above 90%, Helia’s guidelines also need 5% deposit funds, which is the full $35,000 here.
The investment 95% loan can’t add its $29,062 premium, because the total would reach 99.15% against a 95% ceiling that includes the premium. Cutting the base loan to $641,000 lets the premium fit inside 95% and needs $5,062 less cash than paying the premium upfront.
Reduced Lender and Property Options
Lower ceilings change the cash needed. At Macquarie, an investment loan at 90% has to fit its fee inside $630,000, so your client needs more than $70,000 above the loan.
Interest-only repayments push it further. Any interest-only portion caps a Macquarie loan at 80%, or $560,000, leaving $140,000 to find.
Property restrictions apply on top. A high-density apartment at the same price also caps at 80% at Macquarie, leaving $140,000.
A MyState Category A postcode caps uninsured lending at 70%, or $490,000, leaving $210,000 to find. With LMI, the ceiling is 90% including the premium, so the premium has to fit inside $630,000.
For a deposit on this $700,000 investment property, your client needs $59,000 at MyState, where the 95% ceiling includes Helia’s premium, and more than $70,000 at Macquarie’s 90% ceiling. Both figures sit before purchase costs.
To repeat the matrix for another security or borrower, Bulma’s Policy Advisor can run it as one question across 52+ lenders. It returns a side-by-side table of their security and LVR limits, quotes each lender’s policy wording and names the lenders whose policy doesn’t cover the point.
Respond to a Valuation Shortfall
When a valuation comes in low, recalculate the LVR and the funds to complete on the accepted valuation before choosing a response. Under Helia’s 10 August 2026 guidelines, a purchase uses the lower of price and valuation, while a refinance or equity release uses the valuation alone.
Recalculate on the Accepted Valuation
Each fictional example uses the accepted valuation as the new denominator. The bank property valuation guide explains how lenders order and read valuations.
- For a purchase, a $700,000 contract values at $670,000. A $630,000 loan becomes 94.03%, so keeping 90% means a $603,000 loan and $97,000 in funds above it, which is $27,000 more.
- For a refinance, a home your client expected at $800,000 values at $760,000. Their $650,000 loan moves from 81.25% to 85.53%, so staying uninsured under MyState’s 80% limit, effective 1 July 2026, means cutting the loan to $608,000.
- For an equity release, a home expected at $900,000 values at $820,000. A $660,000 loan, including $160,000 of new cash, is now 80.49%, so Macquarie’s 10 September 2026 equity release limit of 80% allows $656,000 and $156,000 of cash.
At 94.03%, the purchase loan stays within MyState’s 95% owner-occupied ceiling with LMI. Helia’s 5% deposit-funds rule now applies, and the premium is larger than at 90%.
Compare the Responses
Compare five responses before you recommend one, because each changes the loan, the cost or the timing.
| Response | What it changes | Check before relying on it |
|---|---|---|
| Additional funds | Restores the target LVR | The source and timing of the extra money |
| Lower borrowing | Keeps the client within the lower ceiling | Whether the smaller loan still meets the purchase, refinance or cash-out goal |
| Documented valuation review | Can lift the accepted value | Written evidence such as recent comparable sales. Ask whether the lender will order a review or second valuation |
| Eligible lender alternative | Moves the file to a higher ceiling or a different valuation | That lender’s own valuation, LMI terms and restrictions for this security |
| Revised transaction terms | Changes the price, settlement date or cash-out amount | The seller’s agreement or the client’s revised plan |
Keep both valuations on the file, because the second lender or reviewer will compare them. Before you recommend a response, reassess its suitability under the best interests duty explained in Regulatory Guide 273 from the Australian Securities and Investments Commission (ASIC).
Check the deadlines next. A new lender or valuation review takes time that a subject to finance clause may not allow, so confirm the finance date before your client commits to a response.
