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LVR, How It Can Hurt Your Loan Approval? | 30
LVR or Loan to value ratio, you might have heard of it, but what does it mean?
On this short and sweet episode of The Property Heroes Podcast, our Finance Hero Shehan takes us through the key points.
How is it the LVR calculated?
The LVR is a percentage referencing the loan amount on a particular property VS it's total value. So if you have a property which is worth $600,000 and a loan for $500,000 to work out the LVR you divid the $500k by $600k which equals and LVR of 83.33%.
Why is it important?
The banks use this as part of their risk assessment, and is one of the main pillars used to establish if it's a debt they want to take on.
Do different property types, get different LVR's? Say a house vs a High Rise.
The simple answer is YES, but there are many factors which change from time to time, depending on the appetite of the banks.
Does the postcode I'm buying in matter?
Like the previous answer, YES, it will matter for certain suburbs typically those inner city suburbs which have a lot of new high rise development going on, Melbourne, Sydney, Brisbane CBD's, the Gold Coast etc.
Whats the maximum LVR I can get?
There are a lot of governing factors here, but generally you can get all the way to 95%, meaning you could but a property with a 5% deposit. Things like your occupation could also have a positive impact on the LVR and Lender's Mortgage Insurance or LMI, but we will unpack that in another episode.
We hope you enjoyed this one, we enjoyed creating for you and if it was of value, it would be amazing if you gave us a review and subscribed so you can find out when the next show is available.
Thanks again and catch you next time.
The Property Heroes
—
We release a few different episodes a week
Monday - A short rapid fire educational episode about property/real estate
Wednesday - A longer form, conversational episode talking all thing property and finance.
Friday - A short rapid fire educational episode about finance.
If you have any questions or any comments, it would be great to hear from you [email protected] or you can reach us through our social.
—
Instagram: https://www.instagram.com/letsbuyproperty/
Facebook group: https://www.facebook.com/groups/letsbuyproperty/
Facebook page: https://www.facebook.com/letsbuypropertyfb/
Website: https://www.letsbuyproperty.com.au/
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By The Property HeroesLVR or Loan to value ratio, you might have heard of it, but what does it mean?
On this short and sweet episode of The Property Heroes Podcast, our Finance Hero Shehan takes us through the key points.
How is it the LVR calculated?
The LVR is a percentage referencing the loan amount on a particular property VS it's total value. So if you have a property which is worth $600,000 and a loan for $500,000 to work out the LVR you divid the $500k by $600k which equals and LVR of 83.33%.
Why is it important?
The banks use this as part of their risk assessment, and is one of the main pillars used to establish if it's a debt they want to take on.
Do different property types, get different LVR's? Say a house vs a High Rise.
The simple answer is YES, but there are many factors which change from time to time, depending on the appetite of the banks.
Does the postcode I'm buying in matter?
Like the previous answer, YES, it will matter for certain suburbs typically those inner city suburbs which have a lot of new high rise development going on, Melbourne, Sydney, Brisbane CBD's, the Gold Coast etc.
Whats the maximum LVR I can get?
There are a lot of governing factors here, but generally you can get all the way to 95%, meaning you could but a property with a 5% deposit. Things like your occupation could also have a positive impact on the LVR and Lender's Mortgage Insurance or LMI, but we will unpack that in another episode.
We hope you enjoyed this one, we enjoyed creating for you and if it was of value, it would be amazing if you gave us a review and subscribed so you can find out when the next show is available.
Thanks again and catch you next time.
The Property Heroes
—
We release a few different episodes a week
Monday - A short rapid fire educational episode about property/real estate
Wednesday - A longer form, conversational episode talking all thing property and finance.
Friday - A short rapid fire educational episode about finance.
If you have any questions or any comments, it would be great to hear from you [email protected] or you can reach us through our social.
—
Instagram: https://www.instagram.com/letsbuyproperty/
Facebook group: https://www.facebook.com/groups/letsbuyproperty/
Facebook page: https://www.facebook.com/letsbuypropertyfb/
Website: https://www.letsbuyproperty.com.au/