What is My Current LVR?

Loan to Value Ratio (LVR) is the total value of a property compared to the loan amount a potential buyer plans to ask for equated as a percentage. LVR can be calculated by dividing the total loan amount by the property value. LVR is essential to successfully purchase a home and lenders judge loan applications based on the individual’s LVR.

A high LVR indicates a high risk to lenders and therefore may prove difficult for a potential borrower to secure their desired loan. A low LVR indicates a low risk to lenders and can make it easier for individual applications to be approved for a borrower’s desired loan. Higher deposit payments can lower a potential buyer’s LVR. 

Mortgage House and our professionals are specialized in lending and have all of the tools and knowledge required to assist potential owners with their home-buying journey. If a potential buyer is unsure of their asking loan amount, we have an online Mortgage Borrowing Calculator available to assist any potential owners in need. Ensuring that your deposit payment is high enough to lower your personal LVR can make it easier to get approved for a loan.

Current LVR Conclusion

A potential buyer’s LVR can be calculated by dividing the total loan amount of the property value. LVR is a deciding factor for lenders when reviewing loan applications, so identifying a personalized LVR is essential to successfully purchasing a new home. Give us a call today at Mortgage House to speak with a lending specialist about your home buying concerns.