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  • Writer's pictureSkyward Financial

What does 'LVR' mean?

The 'Loan - to - Value - Ratio' or abbreviated to 'LVR' is the percentage of borrowed money to the value of a property.


For example...


If you have a deposit of $75,000 (excluding Stamp Duty, which is a Government charge that needs to be paid) and you buy a property valued at $750,000 then you have an 'LVR' of 90%.


This is because you have 10% ($75,000) deposit of the purchase price ($750,000).


If you have less than 80% 'LVR' then often banks will waive 'LMI' (Lenders Mortgage Insurance).


However, if you have 10% or less as a deposit lenders will often require you to take out 'LMI' which is an addtional cost.


Speak to Skyward Financial to see how much you could borrow and calculate your 'LVR'


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