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What is LVR?

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.