What is a Loan to Value Ratio?

Loan to Value Ratio (commonly referred to as LVR) is a financial term used by lenders to assess the risk of a mortgage loan. It’s a fairly simple calculation, dividing the amount you intend to borrow by the value of the property. 

A LVR 80% or lower is looked at favourably by lenders as the lending risk is lowered. A lower LVR is often rewarded by offering lower interest rates and removing the requirement of Lenders Mortgage Insurance (LMI).

Some lenders, like Bluestone Home Loans, offer loans with an LVR of up to 90%. The good news for Bluestone customers is that we don’t require LMI, event at 90% LVR. 

Learn more about how LVR works in our blog here. 

To find out the rate you’re likely to get, speak to your broker who will be able to guide you through the process and ensure you have all of the information you need.