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.
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.