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LVR - Loan to value ratios LVR

Questions answers and general discussion about lvr - loan to value ratio

Calculating Loan to Value Ratio

Thu, 2008-04-03 23:20 — Broker

Loan to value ratio, often referred to as LVR, is an important calculation to keep in perspective when purchasing property with finance.

The easiest way to calculate loan to value ratio is to divide the loan amount by the actual property purchase price or valuation (whichever is the lower - purchase price or valuation).

An $80,000 loan ÷ $100,000 purchase price/valuation = 0.80

Multiply this 0.80 x 100 to convert to a percentage and the loan to value ratio = 80% LVR Read more

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