The ratio of a loan amount to the value of the property being purchased, expressed as a percentage. If you borrow $640,000 to buy an $800,000 property, your LVR is 80%. Lenders use LVR to assess risk, loans above 80% LVR typically require LMI. Lower LVR means lower risk for the lender and often access to better rates.
Glossaryfirst home
What is Loan to Value Ratio (LVR)?
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