A 10% deposit puts you at roughly 90% LVR, and that number changes more than the loan amount. It can move the interest rate offered, add a real cost in Lenders Mortgage Insurance, and narrow which lenders and products are realistically available.
A worked example
On a $700,000 purchase, a 10% deposit is $70,000, leaving a $630,000 loan at roughly 90% LVR. Compare that with an 80% LVR purchase of the same property, a $140,000 deposit and a $560,000 loan. The gap isn’t just the extra $70,000 upfront: the 90% LVR loan is also the one most likely to attract LMI, a narrower band of available lenders, and in some cases a different advertised rate.
What actually changes at 90% LVR
LMI becomes likely. Above roughly 80% LVR, Lenders Mortgage Insurance often applies, a policy that protects the lender, not you, if the loan isn’t repaid. LMI is not priced the same way everywhere: the premium depends on the insurer, the lender, the exact LVR band and the loan size, and PolicyMatch will never estimate a “typical” figure, the Funds Position tool takes an actual lender/insurer quote instead of guessing.
Pricing can shift by band. Some lenders price loans in LVR tiers, for example, a materially different rate above 80% or above 90% than below it, so the rate quoted at a glance may not be the rate offered once the actual LVR is known.
Policy availability narrows. Not every lender or every product is written at every LVR band. Some products stop at 90%, some at 95%, and a handful of specific schemes only exist near the top of that range, so a smaller deposit can, in practice, reduce the shortlist before pricing is even compared.
| LVR band | What commonly changes |
|---|---|
| Up to 80% | LMI typically not required; widest lender/product choice |
| 80–90% | LMI likely; pricing tier can change; product range narrows |
| 90–95% | LMI premium rises further; fewer lenders write this band; some government scheme pathways specifically target this range |
What to prepare
- A clear, evidenced deposit figure, savings history matters at higher LVR, see genuine savings below
- Whether you may be eligible for a government scheme that changes the deposit/LMI position (see the First Home hub)
- A realistic buying-cost estimate that includes government duty, not just the deposit itself
Next step: use the Deposit & LVR tool to see where your numbers land, then use Funds Position to build the full cash picture once you enter any government charges you have confirmed.