Loan to Value Ratio (LVR)

The Loan to Value Ratio (LVR) is a measurement of the amount you need to borrow (loan) as a proportion of the ‘lender-assessed value’ (the lender’s estimate for the property’s value). 


A property is valued by the lender at $1,000,000 and you have a $200,000 deposit. That means you need to borrow $800,000 to cover the rest of the purchase. Hence, your LVR = 800,0001,000,000 = 80%*

*This is a very simplified example which excludes possible fees and costs.

Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.
Get in touch
We're here to help! If you have a specific question, you can call us on Monday-Friday from 8.30am-6.00pm (Sydney time).