• PUBLISHED DATE: 26/02/16
  • LAST UPDATED DATE: 27/08/26
  • Marc Barlow Principal, Mortgage Broker Melbourne

Loan to Value Ratio (LVR)

This is the percentage of the value of the property you are borrowing.

For example:

380,000 loan amount

400,000 purchase price       x 100 = 95%

In this instance the loan to value ratio (LVR) is above  80%

therefore mortgage insurance is payable.

*Rules for low documentation loans differ.

Author: Marc Barlow

Role/Position: Principal, Mortgage Broker Melbourne