What is a Loan to Valuation Ratio (LVR)?

What is a Loan to Valuation Ratio (LVR)?

Loan to Valuation Ratio is a percentage that is calculated by dividing the amount of the loan by the purchase price or appraised value of the mortgaged property.
UNO home loans
UNO home loans

Loan to Valuation Ratio is a percentage that is calculated by dividing the amount of the loan by the purchase price or appraised value of the mortgaged property. This is usually a key indicator of risk to a lender when considering a lending scenario. Typically no higher than 60% for LoDoc Loans, no higher than 80% without Lender Mortgage Insurance, and no higher than 97% for mainstream lenders.

UNO home loans
UNO home loans