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What is Loan to Value Ratio or 'LVR?'

What is Loan to Value Ratio or 'LVR?'

It is the amount of money you intend to borrow, compared to the value of the property (not the selling price) you're looking to buy.

We use the LVR when assessing your home loan application. It’s also helps determine if you need to pay Lenders Mortgage Insurance (LMI).

For example:

Amount you intend to borrow:

Value of purchase property:

Therefore what the LVR is:

$400,000

$500,000

80%