LVR or Loan to Value Ratio is a key calculation when deciding how much you can borrow against a particular property (Security).
The loan to value ratio (LVR) is calculated by dividing the amount that you borrowed by the value of your house.
For example, if you borrow $350,000 and your property is valued at $420,000, your LVR is 83%.
$350,000/$420,000 = 0.83X100 = 83%
LVR is particularly important to consider when seeing if you will have to consider Lenders Mortgage Insurance (LMI) as part of your mortgage application.
Typically, any lending above 80% LVR will have LMI as part of the application.