LVR - Loan to Value Ratio

Loan to Value Ratio (LVR):

The percentage of the value of the property that you propose to borrow.

Why is this important? Well if you are borrowing over a certain percentage value of the property additional costs and rules come into play – the less equity you will have in the home means the more risk your lender is taking on and they adjust the terms accordingly. That makes sense, right?

Presently a lower LVR (loan as a percentage of the value of the property) will also attract a lower interest rate, so valuations are very important and you should be realistic – but question a valuation that you think is definitely incorrect.

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Two Red Shoes Copyright © 2020 All rights reserved. Call on 02 9002 0380, 0404 494 929, email us  or 'old school' fax 02 9002 0381

Jarrett Group Pty Ltd atf Jarrett Group Discretionary Trust trading as Two Red Shoes hold Australian Credit Licence No: 428614 and are members of an external dispute resolution scheme. Details of our complaint resolution process can be found here or please see our credit guide. All information contained on this site is general information only, and does not take into account your particular financial situation or needs. You should consider your personal objectives, financial situation along with the recommendations of your trusted advisors.

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