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LVRWhen it comes to home loans, do you ever feel like mortgage brokers and lenders speak an entirely different language? Don’t worry – you’re not alone. In fact, many don’t know the difference between home loans and mortgages.

One acronym you’ve probably encountered before is LVR. LVR stands for loan to value ratio. Have a watch of the video below to learn what that means, how it’s calculated, and most importantly how it will affect your home loan.

More on LVR

Here are a few more things you may find helpful when it comes to understanding LVR:

  • One way to comprehend LVR is to recognise the relationship between LVR and risk. The lower the percentage, the lower the risk. A 0% LVR is a no-risk loan.
  • The maximum LVR you can get from lenders is 95-99%. Not many lenders will go this high, though.
  • If the value of your property changes, so does the LVR. If your property value goes down, and you refinance your loan, you may need to take out Lenders Mortgage Insurance. In this case, we would not recommend refinancing, if possible.


Wrapping your head around common mortgage jargon will really help you in the process of securing a loan. If there are other words or phrases you’ve come across but don’t understand, take a look at our glossary.

Secure an Affordable Home Loan

If you have any questions about LVR, or would like help securing an affordable home loan, please let us know. You can phone on 02 9068 6644, or simply fill out the contact form at the top right of this page.

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Alex Sperling - Finance/Mortgage Broker

Alex Sperling - Finance/Mortgage Broker

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