What is LVR and how does it work?
It is the amount of money you intend to borrow, compared to the value of the property (not necessarily 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% |