Loan to Valuation Ratio

The Loan to Valuation Ratio (LVR) is our way of working out the true financial value of your property, and decides whether your Home Loan needs to be covered by Lenders Mortgage Insurance or a Low Deposit Premium.

The Loan to Valuation Ratio is simply the loan amount divided by the value of your property. We require you to have Lenders Mortgage Insurance or a Low Deposit Premium if we lend you more than 80% of the value of the property.

For example, the LVR of a $225,000 loan on a $283,000 property is 79.5%. In this instance, no Lenders Mortgage Insurance or a Low Deposit Premium is required.

The maximum we will lend you is 95% of the valuation amount. We also add the Lenders Mortgage Insurance or a Low Deposit Premium to your loan (up to a maximum of 97%), so it doesn’t cost you anything upfront.

You must take into account that the value of a property is determined by our valuation and NOT the price you paid for it. There may a difference between the valuer's price and the purchase price.