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What is Loan to Value Ratio (LVR)?
The Loan to Value Ratio (LVR) is a percentage that represents the ratio of a loan to the value of the property being purchased. It is calculated by dividing the loan amount by the appraised value of the property and then multiplying by 100. For example, if you have a loan of $400,000 on a property valued at $500,000, the LVR would be:
=80%
LVR is a key indicator used by lenders to determine the risk associated with a loan. A higher LVR means more risk to the lender, which can result in higher interest rates, the need for Lenders Mortgage Insurance (LMI), or even loan denial
Key Features
Easy LVR Calculation
Input your loan amount and the property’s current market value to instantly calculate your LVR percentage.
Understand Your Borrowing Position
Use the LVR percentage to gauge how much equity you have in your property, which can impact your borrowing power and financing options.
Risk Assessment
A higher LVR often means more risk, and our calculator helps you understand if you fall into a high-risk category, potentially requiring Lenders Mortgage Insurance (LMI).
User-Friendly Interface
Designed for everyone, from first-time homebuyers to seasoned property investors, to help you make informed decisions about your financing.
Why Use the Loan to Value Ratio (LVR) Calculator?
Determine Financing Feasibility
Know if you need to increase your deposit or adjust your financing strategy to meet lender requirements.
Plan for Lenders Mortgage Insurance (LMI)
If your LVR is above a certain threshold (usually 80%), you may need LMI, which adds to the cost of your loan. The calculator helps you plan for these additional expenses.
Negotiate Better Loan Terms
A lower LVR can put you in a stronger position to negotiate better interest rates and terms with lenders.
Assess Risk Levels
Evaluate the risk level of your loan to avoid over-leveraging and make safer investment choices.
Who Is It For?
Homebuyers
Understand how much deposit is required to avoid LMI and get better loan conditions.
Property Investors
Gauge the risk of leveraging properties to maximize investment returns while minimizing financial exposure.
Mortgage Brokers
Provide clients with accurate LVR calculations to help them make more informed borrowing decisions.
Financial Advisors
Include LVR in financial planning to guide clients in their property investment strategies.
Frequently Asked Questions (FAQs)
What services can a buyer’s agent provide?
Our pre purchase property inspection team is here to help you at every step of this complex journey with confidence and clarity. Our advice will always be in your favour to match your specific needs. We also help you identify the best properties.
Do Buyer's Agents Buy Interstate?
Our pre purchase property inspection team is here to help you at every step of this complex journey with confidence and clarity. Our advice will always be in your favour to match your specific needs. We also help you identify the best properties.
What to look for in your first investment?
Look for properties in a good location with strong rental demand, affordable maintenance costs, & potential for value appreciation.
What is a Buyer’s agent?
A buyer’s agent is a real estate professional who represents the interests of the buyer. They help find suitable properties, negotiate prices, and guide buyers through the purchasing process.
How Is A Buyer's Agent Different From A Seller's Agent?
A buyer’s agent works exclusively for the homebuyer, advocating for their interest and the best possible outcome. In contrast, a seller’s agent represents the seller’s interests.
What services can a buyer’s agent provide?
Our pre purchase property inspection team is here to help you at every step of this complex journey with confidence and clarity. Our advice will always be in your favour to match your specific needs. We also help you identify the best properties.
Do Buyer's Agents Buy Interstate?
Our pre purchase property inspection team is here to help you at every step of this complex journey with confidence and clarity. Our advice will always be in your favour to match your specific needs. We also help you identify the best properties.
What to look for in your first investment?
Look for properties in a good location with strong rental demand, affordable maintenance costs, & potential for value appreciation.
What is a Buyer’s agent?
A buyer’s agent is a real estate professional who represents the interests of the buyer. They help find suitable properties, negotiate prices, and guide buyers through the purchasing process.
How Is A Buyer's Agent Different From A Seller's Agent?
A buyer’s agent works exclusively for the homebuyer, advocating for their interest and the best possible outcome. In contrast, a seller’s agent represents the seller’s interests.