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What is LVR?
LVR stands for the “Loan to Value Ratio” and is simply what it states. It’s the amount of money you borrow for a home loan divided by the value of the property you’re purchasing. For example, if you have a deposit of $100,000 (meaning you’ll probably be borrowing $400,000) and you’re purchasing a house worth $500,000… the LVR would be 80%. It is used to assess your risk factor as a borrower, the lower the LVR the better! Most lenders have max ratios they will lend in different circumstances.
If you’ve got any questions, please do not hesitate to give Fiona a call on 0412411823!
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.
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