Loan to Value Ratio (LVR)
This is the percentage of the value of the property you are borrowing.
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.
Marc has been a professional lender for 28 years. After beginning his career in 1990 with a UK Building Society, he moved to Australia where he held several different retail banking roles. In 1999 it became clear to him that a mortgage broker would eventually become an obvious choice for someone looking for a home loan so he took the plunge and became an independent broker. He hasn’t looked back since!