What is LVR?

Loan to Value Ratio (LVR) is the percentage of a property’s value that is financed by a loan. It is commonly used by lenders to assess risk when approving a home loan.

How is LVR Calculated?

LVR is calculated by dividing the loan amount by the property value and multiplying by 100. For example, a $400,000 loan on a $500,000 property results in an LVR of 80%.

Why is LVR important?

LVR is important because it can affect your loan approval, interest rates, and whether you need to pay lenders mortgage insurance (LMI). Lower LVRs are generally seen as lower risk by lenders.

LVR Calculator

Calculate your loan to value ratio (LVR) based on your loan amount and property value.

What is good LVR?

An LVR of 80% or lower is generally considered favourable, as it may allow borrowers to avoid LMI. Higher LVRs may still be approved but often come with additional costs.