Want to refinance? Your LVR is the secret to getting a lower interest rate

By Jasmine Gearie · · 2 min read
Fact Checked
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Your loan-to-value ratio (LVR) refers to the amount you need to borrow to buy a property, and it’s expressed as a percentage of the property’s value. Think of it like this – the smaller your deposit, the higher your LVR will be.

But as you pay off your home loan, your LVR is also likely to decrease, so another way to think of LVR is the percentage of property value that is owned by you – that’s known as your home equity.

Why your LVR is a powerful bargaining chip

Your loan-to-value ratio can be used to your advantage when negotiating your interest rate with a lender.

That’s because LVR is one of the metrics used to assess your borrowing risk, and the lower your LVR is, the safer you’re considered as a borrower.

Lenders will likely offer their lowest rates to those with lower loan-to-value ratios, so if you’ve been paying off your home loan for a few years and you’ve managed to lower your LVR, you could be in a position to score a better rate if you choose to refinance your home loan.

Refinance your home loan using LVR

90% LVR (10% deposit or equity)

Important disclosures and comparison rate warning*
Loans.com.au Variable Home Loan 90
  • 5.54% p.a. variable rate (5.58% p.a. comparison rate*)
  • Mozo Experts Choice Awards winner 2025
  • No application fees

  • Offset account at additional cost

Loans.com.au offers those with smaller equity of 10% a variable rate of 5.54% p.a. (5.58% p.a. comparison rate*). It’s this low rate that helped it win one of Mozo’s Experts Choice Awards for first home buyers in 2025, but refinancers are equally well-served here. An offset account is available, but you’ll need to add 0.10% to your interest rate to get it. We like that Loans.com.au comes with no application or ongoing fees, but it does include a settlement fee along with any usual government fees.

80% LVR (20% deposit or equity)

Important disclosures and comparison rate warning*
Unloan Variable Home Loan
  • 5.49% p.a. variable rate (5.40% p.a. comparison rate*)
  • Loyalty discount every year for up to 30 years
  • Mozo Experts Choice Awards winner 2023, 2024 & 2025^

  • No offset account

Unloan offers competitive variable rates from 5.49% p.a. (5.40% p.a. comparison rate*) to those with an LVR of at least 80% – that’s a minimum of 20% equity in your home. Unloan is backed by CommBank, and what makes it unique is you’ll get a 0.01% p.a. loyalty discount for each year you’re paying off your loan, for up to 30 years (T&Cs apply). Unloan has also won our Low Cost Home Loan award three years running.

70% LVR (30% deposit or equity)

Important disclosures and comparison rate warning*
Regional Australia Bank Home Loan Variable
  • 5.49% p.a. variable rate (5.50% p.a. comparison rate*)
  • Ability to split your home loan rate
  • Up to $4,000 cashback (T&Cs apply)

  • $4,000 cashback for loans of $750,000 and over
Find out more

The benefit of choosing a smaller customer-owned lender is that you’ll often get lower interest rates than the Big Four, and Regional Australia Bank does just that. It offers tiered interest rates, so if you have an LVR of 70% or less, you can access a variable rate of 5.49% p.a. (5.50% p.a. comparison rate*).

It’s also offering up to $4,000 cashback when you refinance or take out a new loan, though the highest amount is only available for loans of at least $750,000.

60% LVR (40% deposit or equity)

Important disclosures and comparison rate warning*
Ubank Neat Home Loan Variable
  • 5.64% p.a. variable rate (5.66% p.a. comparison rate*)
  • No annual fees to pay
  • Owned and backed by NAB

  • $250 settlement fee

If you want the reassurance of banking with a Big Four without facing higher interest rates, Ubank offers a nice middle ground. It’s owned and backed by NAB, so you can benefit from the savings an online lender can offer, and still get that peace of mind.

Ubank’s Neat Home Loan offers variable rates from 5.64% p.a. (5.66% p.a. comparison rate*) to borrowers with an LVR of 60% – that’s at least 40% equity in your home. It has zero annual fees and the ability to make extra repayments on your loan at no cost.

How much could you save with a lower LVR?

The average variable rate for a 90% LVR is 6.65% p.a. according to Mozo’s database, while the average for an LVR of 70% is 6.36% p.a. – that’s 29 basis points lower.

Depending on the size of your loan and how many years you’ve got to pay it off, a rate cut of 0.29% could reduce your monthly repayments and help you pay less interest if you were to refinance.

Use our mortgage repayments calculator to work out how much you’d pay each month depending on your interest rate.

LVR Average variable rate (p.a.) Monthly repayments
60% 6.32% $3,320
70% 6.36% $3,332
80% 6.40% $3,345
90% 6.65% $3,423

Source: Mozo database. Average variable rates for owner occupier, principal and interest home loans, paid over a 25-year loan term. $500,000 loan amount. Accurate as at 27 May, 2025.

For example, on a $500,000 loan being paid off over 25 years, you could save $91 in repayments each month, which shakes out to be just over $1,000 in one year.

That’s why it’s so important to compare home loans – even after you already have one – to ensure you’re always getting a competitive rate as your LVR gets lower.

Remember that the interest rates in the table above are averages, and there are plenty of lower rates available to mortgage holders with lower LVRs who are looking to switch.

Last updated 19 June 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.40 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
    • Built by CommBank
  • Promoted

    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.77 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.
  • Promoted

    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.76 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options
  • Promoted

    Variable Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.53 % p.a.
    Variable
    Comparison rate
    5.74 % p.a.
    Initial monthly repayment
    $2,848
    Go to site
    • $0 application fee to pay
    • Apply in as little as 15 minutes

  • Fixed Offset Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.69 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • $0 application fee to pay
    • Additional repayments up to $20,000/year
    • Apply in as little as 15 minutes

  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.72 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.40 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • OMG Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.52 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • No ongoing annual fees
    • Pre-approval valid for 3 months

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.76 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.77 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

  • Variable Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.53 % p.a.
    Variable
    Comparison rate
    5.74 % p.a.
    Initial monthly repayment
    $2,848
    Go to site
    • $0 application fee to pay
    • Apply in as little as 15 minutes

  • Flex Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.53 % p.a.
    Fixed 2 years
    Comparison rate
    5.86 % p.a.
    Initial monthly repayment
    $2,848
    Go to site
    • Multiple offset accounts available
    • Free extra repayments
    • Easy redraw facility

  • Budget Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.57 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Split loan available

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.58 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • Basic Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.63 % p.a.
    Variable
    Comparison rate
    5.66 % p.a.
    Initial monthly repayment
    $2,880
    Go to site
    • No ongoing monthly loan maintenance fees
    • Weekly, fortnightly, or monthly repayment options

  • Neat Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.64 % p.a.
    Variable
    Comparison rate
    5.66 % p.a.
    Initial monthly repayment
    $2,883
    Go to site
    • Free extra repayments
    • Easy redraw facility
    • No annual fee to pay

  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.64 % p.a.
    Variable
    Comparison rate
    5.67 % p.a.
    Initial monthly repayment
    $2,883
    Go to site
    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months

  • Flex Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.64 % p.a.
    Variable
    Comparison rate
    5.89 % p.a.
    Initial monthly repayment
    $2,883
    Go to site
    • Multiple offset accounts available
    • Free extra repayments
    • Easy redraw facility

  • Offset Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    5.87 % p.a.
    Initial monthly repayment
    $2,947
    Go to site
    • No ongoing monthly loan maintenance fees
    • Weekly, fortnightly, or monthly repayment options
Showing 15 results from 415 home loans. Use the filters to see more

Want free expert advice on your home loan?

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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