Can you refinance above 80% LVR?

Yes, some lenders may refinance above 80% LVR, however lenders mortgage insurance or other risk pricing may apply and policy can become tighter. Approval depends on valuation, income, expenses, credit conduct, and the type of property being offered as security.

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Refinance / Restructuring

What LVR Applies When Refinancing?

Q: What LVR applies when refinancing?

Many refinance applications are strongest at 80% LVR or below because this often avoids lenders mortgage insurance and gives access to broader lender policy. Some lenders may consider higher LVR refinance scenarios, sometimes up to 90% or 95%, but that usually depends on property type, repayment type, credit profile, serviceability and insurance availability.

Quick answer

Many refinance applications sit around

80% to 95%

Depending on equity, property type, lender policy, and whether LMI is required

Most competitive zone 80% LVR or below
Higher LVR scenarios May require LMI
Main approval drivers Valuation + serviceability

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The LVR on a refinance is based on the new loan amount compared with the lender's current valuation of the property. A stronger equity position usually means more lender choice, lower risk pricing, and a simpler approval path.

In Australia, many lenders treat 80% LVR as an important threshold because loans above that level often move into mortgage insurance or tighter credit policy territory.

Some borrowers can refinance above 80% LVR, and in certain residential cases lender limits can extend to 90% or even 95%, but approval depends on the security, repayment type, income position, credit file, and insurer acceptance where relevant.

For specialised, low doc, unusual security, or more risk sensitive scenarios, the practical LVR can be lower. That is why refinance LVR is never just a number. It is a policy outcome shaped by the whole application.

Key concepts behind refinance LVR

Loan to value ratio

LVR is the new loan amount divided by the lender's assessed property value, not the price you originally paid

80% threshold

Many mainstream refinance scenarios are strongest at 80% or below because this can avoid LMI and open up broader product choice

Higher LVR lending

Some residential refinances can be considered above 80%, sometimes up to 90% or 95%, subject to policy and insurance

Property and borrower risk

Units, unusual securities, interest only structures, and weaker credit or income profiles can reduce the LVR available

How lenders look at refinance LVR

LVR is only one part of the refinance decision. Lenders usually assess the file through several filters at the same time.

Valuation outcome

Current value matters most

The new lender's valuation sets the base for the LVR calculation and can raise or reduce the amount available

Serviceability

Income still has to work

Even where equity is strong, the loan must still fit the lender's servicing model and current buffer rules

Security and purpose

Policy changes by scenario

Owner occupied, investment, equity release, debt consolidation, and property type can all affect the maximum LVR

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What lenders assess before confirming an LVR

A refinance lender will normally review several points before confirming how much of the property value they are willing to lend against:

01. Valuation, postcode, dwelling type, and overall marketability of the security

Security quality
02. Current income, living expenses, debts, and repayment history

Serviceability
03. Loan purpose, repayment type, credit file, and whether LMI or risk pricing applies

Policy fit

Common LVR issues when refinancing

Valuation comes in low

If the new lender values the property below expectations, the LVR rises immediately and the refinance can fall outside policy.

Possible solutions include:

Reduce the loan amount or equity release requested
Use additional cash at settlement
Test alternative lenders with different valuer panels

LVR is above 80%

Once a refinance moves beyond 80% LVR, LMI or tighter lender policy may apply, which can change pricing and lender choice.

Possible solutions include:

Leave part of the debt with the current lender if appropriate
Contribute funds to reduce LVR
Check whether profession based or scheme based exceptions are available

Serviceability no longer works

A borrower may have enough equity for the LVR, but still fail the refinance because the new lender applies a different servicing model.

Possible solutions include:

Restructure debts or lower the loan limit sought
Adjust repayment type where suitable and permitted
Consider a lender whose policy better fits the scenario

Steps to assess your refinance LVR

Step

01

Confirm the current balance of the loan or loans being refinanced

Step

02

Estimate the property's likely current market value

Step

03

Calculate the target LVR and note whether funds are also being released

Step

04

Match the scenario to lenders that fit the property type and borrower profile

Step

05

Submit the application and allow the lender to complete its valuation

Step

06

Review the final approved LVR, pricing, fees, and any mortgage insurance cost before settlement

Speak with a Refinance Specialist

Refinance outcomes can vary significantly depending on the property value, the current debt position, the borrower profile, and the LVR the new lender is being asked to support.

A specialist can review the scenario and help identify which lenders may be comfortable with the target LVR and loan purpose.

Speak with a finance specialist about your refinance scenario.

Submit the short form below and a refinance specialist will review your position and discuss possible lender options.

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Call us to discuss your refinance and LVR questions

Refinance / Restructuring

What LVR Applies When Refinancing?

Quick answer

Many refinance applications sit around

80% to 95%

Key concepts behind refinance LVR

Loan to value ratio

80% threshold

Higher LVR lending

Property and borrower risk

How lenders look at refinance LVR

Valuation outcome

Current value matters most

Serviceability

Income still has to work

Security and purpose

Policy changes by scenario

Need Help with your Project?

What lenders assess before confirming an LVR

Common LVR issues when refinancing

Valuation comes in low

LVR is above 80%

Serviceability no longer works

Steps to assess your refinance LVR

Step

01

Confirm the current balance of the loan or loans being refinanced

Step

02

Estimate the property's likely current market value

Step

03

Calculate the target LVR and note whether funds are also being released

Step

04

Match the scenario to lenders that fit the property type and borrower profile

Step

05

Submit the application and allow the lender to complete its valuation

Step

06

Review the final approved LVR, pricing, fees, and any mortgage insurance cost before settlement

Speak with a Refinance Specialist

Speak with a finance specialist about your refinance scenario.

Contact Form

Prefer to speak with someone directly ?

1300 421 044

Additional Questions

01How much can you borrow when refinancing?

02Can you refinance with low equity?

03How long does refinancing take?

04Can you release equity when refinancing?

05What interest rates apply to refinancing?

Helpful Property Finance Guide

How property loan refinancing works

What costs apply when refinancing

What documents are required for refinancing

What interest rates apply when refinancing

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