News Corp Australia
First published 14 Jul 2025, 12:01pm
Real Estate
Townsville home owners may be best placed to unlock big mortgage savings.
ANALYSIS
When you apply for a home loan, there are various factors that will determine what interest rate lenders may offer you. One factor you might be able to leverage to negotiate your rate is your property value. As property values climb to new record highs, an increasing number of borrowers may be able to use their property value and loan-to-value ratio (LVR) to get a better deal on their home loan.
The latest PropTrack Home Price data reveals there are 88 regions around the country where property prices have risen over the last year.
The top five regions for annual growth nationally are:
Townsville – 18.70 per cent
Western Australia – Wheat Belt – 15.89 per cent
Mackay – Isaac – Whitsunday – 14.98 per cent
Central Queensland – 14.72 per cent
Barossa – Yorke – Mid North – 14.39 per cent
Anthony Waldron, CEO of Mortgage Choice.
How does LVR work?
Your LVR represents the debt owed on a property compared to the value of the property.
If you’ve been paying down your home loan – especially in an area where property prices have risen – your LVR has likely lowered, and you might be able to use your new LVR to negotiate a better interest rate.
When you work with a mortgage broker to access a more competitive home loan interest rate, the broker will compare what’s on offer with different lenders. Given different lenders may value the same property at a different amount, this can lead to real savings for borrowers.
For example, with a loan size of $550,000:
Lender A values your property at $610,000 (90.16 per cent LVR)
Lender offers you a 6 per cent p.a variable rate
Lender B values your property at $650,000 (84.62 per cent LVR)
Lender offers you a 5.84 per cent p.a variable rate
Lender C values your property at $696,202 (79 per cent LVR)
Lender offers you a 5.49 per cent p.a variable rate
That’s a difference of $2136 a year in home loan repayments between lender A and lender C. his translates to about $64,000 over the life of the loan.
Property values have been flying high in the Barossa Valley area. Picture: Morgan Hancock
So, how do I know if my LVR has changed?
In addition to making a dent on your loan, if you’ve made home improvements or renovations, or your property is in a high-growth region, you may have moved into a new LVR tier.
A mortgage broker can help you take all these factors into account to calculate your current LVR and compare your current home loan against what’s in market to see if you can access a more competitive home loan interest rate.
Top growth per region
The latest PropTrack Home Price data reveals the regions where property prices have risen over the last year.
NSW:
Far West and Orana – 10.08 per cent
Hunter Valley exc Newcastle – 7.20 per cent
Murray – 6.91 per cent
New England and North West – 6.17 per cent
Sydney – South West – 5.72 per cent
QLD:
Townsville – 18.70 per cent
Mackay, Isaac, Whitsunday – 15.89 per cent
Central Queensland – 14.98 per cent
Toowoomba – 13.01 per cent
Ipswich – 11.36 per cent
SA:
Barossa – Yorke – Mid North – 14.39 per cent
South Australia – Outback – 12.65 per cent
South Australia – South East – 12.18 per cent
Adelaide – North – 11.30 per cent
Adelaide – South – 10.93 per cent
VIC:
Bendigo – 3.14 per cent
Ballarat – 3.10 per cent
Shepparton – 2.87 per cent
Melbourne – North West – 2.67 per cent
Warrnambool and South West – 2.35 per cent
TAS:
Hobart – 2.34 per cent
Anthony Waldron is Mortgage Choice CEO.
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