Aspect Learning Guide
Loan to Value Ratio
LVR compares the loan amount to the property value. It helps lenders measure risk and can affect rates, LMI and lender choice.
Loan to Value Ratio explained in plain English
LVR compares the loan amount to the property value. It helps lenders measure risk and can affect rates, LMI and lender choice.
Simple example
If the property is worth $1,000,000 and the loan is $800,000, the LVR is 80%.
Why it matters
LVR can affect lender choice, interest rate, LMI and approval conditions.
Common thresholds
80%, 90% and 95% are common policy points.
General information only: This guide does not take into account your personal objectives, financial situation or needs. Lending policy varies between lenders.