What does LVR mean?
What does LVR mean?
I would like to know what does LVR mean and why does it matter for my loan?
Re: What does LVR mean?
I think it means the percentage of the property price u can borrow.
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: What does LVR mean?
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.
The higher the LVR is the higher the risk to the lender and so the more conservative their assessment is.