LVR

Loan-to-Value Ratio

The loan amount divided by the property value, expressed as a percentage.

Loan-to-Value Ratio is the size of your mortgage relative to the value of the property — calculated as loan amount ÷ property value × 100. An 80% LVR (which means a 20% deposit) is the threshold most Australian lenders use to decide whether LMI is required. A lower LVR usually unlocks better interest rates because the loan is lower risk for the lender.