What does LVR mean?

Any general questions you might have in regards to loans and finance.
jasmine
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What does LVR mean?

Postby jasmine » Wed Jun 17, 2009 2:25 pm

I would like to know what does LVR mean and why does it matter for my loan?

moodyjack
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Joined: Wed Jun 17, 2009 4:36 pm

Re: What does LVR mean?

Postby moodyjack » Wed Jun 17, 2009 4:45 pm

I think it means the percentage of the property price u can borrow.

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Otto Dargan
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Re: What does LVR mean?

Postby Otto Dargan » Thu Jun 18, 2009 8:50 am

Loan to Value Ratio (LVR) is the percentage of the property value that you are borrowing. For example if you have a $100,000 unit and you borrow $80,000 then you have an 80% LVR. If you borrowed $95,000 then you would have a 95% LVR.

The higher the LVR is the higher the risk to the lender and so the more conservative their assessment is.
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