01/09/2026
Ever heard the term Loan-to-Value Ratio (LVR)?
Simply put, your LVR is the percentage of the property’s value that you need to borrow.
For example, if you buy a home valued at $500,000 and borrow $400,000, your LVR is 80%.
So, why does your LVR matter?
💰 More competitive rates
A lower LVR means you’re borrowing less compared with the property’s value. Depending on the lender, this could give you access to more competitive interest rates.
🛡️ Lenders Mortgage Insurance (LMI)
If your LVR is above 80%, you may need to pay LMI. LMI protects the lender if you’re unable to repay your home loan – it doesn’t protect you.
📏 Borrowing power
Your LVR can influence how much you may be able to borrow and the loan options available to you.
Chat with us today to understand how your LVR could impact your home loan.
*𝘚𝘰𝘶𝘳𝘤𝘦: 𝘔𝘰𝘯𝘦𝘺.𝘤𝘰𝘮.𝘢𝘶