What is LVR? FAQ

Your Loan to Value Ratio (LVR) is the percentage of the security property value that you are borrowing. Simply put, it’s the loan amount divided by the value of your property.

LVR is important as it will help you work out what you need to think about for your deposit. So, if the property you want to buy is $500,000 and you want to borrow $400,000 your LVR is 80%. This means the remaining $100,000 would come from your deposit.

Lenders place a large emphasis on the LVR when assessing your loan application, as it's used to assess your risk factor as a borrower. The higher your LVR is, the more of a risk you may be to your lender. Here we outline what you need to know about deposits required to buy a property.

If you would like to speak to someone about your home loan options today, our Lending Specialists are available to help on 13 73 77. Alternatively, you can request a call back online or speak to an accredited Pepper Money broker.

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