Guides
Understanding LVR: what loan-to-value ratio means for you
LVR is one of the first numbers any lender looks at. Here’s how it’s calculated and why it matters for private funding.
What is LVR?
Loan-to-value ratio (LVR) is the size of your loan expressed as a percentage of the value of the property securing it. It tells a lender how much equity cushion sits behind the loan.
How to calculate it
Divide the loan amount by the property value and multiply by 100. For example, a $700,000 loan secured against a property valued at $1,000,000 has an LVR of 70%.
Why LVR matters
- A lower LVR means lower risk for the lender — often reflected in better pricing
- A higher LVR lets you borrow more against the same property
- Where multiple properties are offered, the combined LVR is usually assessed
Flexibility with Apple Finance
Banks tend to apply fixed LVR caps. At Apple Finance each deal is unique — if the deal stacks up, we will stretch the LVR. Our nation-wide network of valuers also means the valuation that sets your LVR happens quickly.