01/09/2026
Ever heard the term Loan-to-Value Ratio (LVR)?
Simply put, your LVR is the percentage of the propertyโs 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?
๐ฐ More competitive rates
A lower LVR means youโre borrowing less compared with the propertyโs value. Depending on the lender, this could give you access to more competitive interest rates.
๐ก๏ธ Lenders Mortgage Insurance (LMI)
If your LVR is above 80%, you may need to pay LMI. LMI protects the lender if youโre unable to repay your home loan โ it doesnโt protect you.
๐ 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.
*๐๐ฐ๐ถ๐ณ๐ค๐ฆ: ๐๐ฐ๐ฏ๐ฆ๐บ.๐ค๐ฐ๐ฎ.๐ข๐ถ