Also called: Loan to value ratio
LVR
LVR, or loan-to-value ratio, is the loan amount expressed as a percentage of the lender's assessed value of the security property or asset. Lenders use it to cap exposure, and commercial LVRs are generally lower than residential ones.
What is a lvr?
LVR, or loan-to-value ratio, is the loan amount expressed as a percentage of the lender's assessed value of the security property or asset. Lenders use it to cap exposure, and commercial LVRs are generally lower than residential ones.
Example
Borrowing $650,000 against a warehouse valued at $1,000,000 is a 65% LVR, leaving a $350,000 deposit plus costs.
Why it matters
LVR drives both how much deposit you need and, often, the rate offered — lower LVRs usually price better.