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LVR Calculator
Calculate your Loan to Value Ratio instantly. See which Alphacon Capital products you qualify for based on your property value and loan requirements.
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Your LVR
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What is LVR?
Loan to Value Ratio (LVR) is a financial metric that compares the total amount of debt secured against a property to the property's market value. It is expressed as a percentage and is one of the most important factors lenders use when assessing a loan application. A lower LVR means more equity in the property and less risk for the lender, which typically results in better loan terms, lower interest rates, and faster approvals. For example, if a property is worth $1,000,000 and the total borrowing is $650,000, the LVR is 65%. Borrowers with lower LVRs are generally considered lower risk and have access to a wider range of lending products and pricing tiers.
How is LVR calculated for commercial property?
The formula is straightforward: LVR = (Total Debt / Property Value) x 100. Total debt includes any existing mortgages, charges, or caveats registered against the property, plus the new loan being applied for. For commercial property, the property value is determined by a qualified valuer through a formal valuation or, in some cases, through a Valex desktop assessment. Unlike residential lending, commercial LVR calculations are based purely on the asset value rather than the borrower's income or serviceability. For example, a $1,500,000 commercial property with a $400,000 existing mortgage and a $350,000 new loan would have a post-loan LVR of 50% — well within most private lender parameters.
What LVR can I borrow at with a private lender?
Alphacon Capital offers four distinct lending products, each with different LVR parameters depending on the postcode category and property type. Resolve and Boost both allow borrowing up to 75% LVR on Category 1 and 2 postcodes (metro and suburban locations), making them suitable for most borrowers in capital cities and established regional centres. Flexi, which offers progressive drawdown facilities, is available up to 65% LVR on metro properties. Reach covers every Australian postcode with no geographic restrictions, although LVR caps may be adjusted for remote or thinly traded property markets. Postcode categories are determined by population density, property market depth, and the availability of comparable sales data. Category 1 postcodes (high-density metro) receive the highest LVR caps, while Category 3 (regional) postcodes may be subject to lower maximums to account for market volatility and disposal risk.
LVR vs bank lending
Private lenders like Alphacon Capital assess loans primarily on the value of the security property, not the borrower's income or financial statements. This asset-based approach means LVR is the central metric — if the property supports the loan, the deal can proceed. Banks, by contrast, layer income-based serviceability testing on top of LVR requirements, which means a borrower could have a strong LVR position but still be declined because their taxable income does not meet the bank's debt-to-income thresholds. Private lending also moves significantly faster: where a bank may take 6–12 weeks for a commercial loan, private lending can settle in 2–4 weeks. For borrowers with time-sensitive transactions, development funding gaps, or non-standard income structures, private lending at slightly higher LVRs often represents a better commercial outcome than waiting for bank approval.
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