11/08/2026
Ever feel like buying your first home is like playing golf for the first tme? ⛳️🏠
You start out confident, take a few swings, miss the ball completely, and halfway through you're wondering why nobody warned you how hard the course was going to be.
Understanding how to buy a house can be like this, the rules of the game and bank terminology are just poorly explained. One piece of jargon that is used is L-V-R.
To know what house you can potentially buy you need to understand what LVR (Loan to Value Ration) actually means...
Here’s the framework: LVR is total amount borrowed divided by property value.
House price = $1,000,000
Your deposit = $200,000
Amount borrowed = $800,000
Your LVR = 80%
Lower LVR = safer bank. Higher LVR = higher risk. If you need to drop your LVR to get approved, you have two options: save a bigger deposit or buy a cheaper house.
Master your LVR and stop guessing what lenders want.
