What is Loan to Value Ratio (LVR)?
Sat, 04/04/2009 - 15:50 — admin
Loan to value ratio is the percentage of a property a borrower owns compared to the loan size a lender has secured against the property.
For Eample, if a $100,000 house is purchased with $20,000 deposit and the purchaser borrows $80,000 for the rest the loan to value ratio would be 80%.
If the purchaser only had $20,000 and had to borrow the purchase costs as well to complete the sale then the loan to value ratio would be closer to 85% based on a general purchase estimate by a non first home buyer in New South Wales.
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