What is LVR?
LRV is an abbreviation for Loan to Value Ration. It is a formula that is used by banks and lenders in the loan application process to determine the risk factor to the bank of granting you the loan.
The formula to calculate LVR is simply the purchase price of the property or the property valuation (whichever is less) divided by the loan amount. So, if you are buying a property for $100,000, with a down-payment of $20,000, your LVR is 80%.
Featured LVR Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Pepper Flexi Advantage (80% up to 85% LVR) |
No lenders mortgage insurance to pay and interest only repayments. | 9.40% | 9.96% | $995 / $15 | 85% | $100,000 / $1,000,000 |
 
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Lenders have set policies as to what the maximum LVR they will allow when approving a home loan. For most people, it is 80%, but there are circumstances where it could be as low as 60% or as high as 100% or more.
In the case of a high-risk loan, you will probably only be approved if your LVR is 60% or less.
For those with exceptional credit and a strong financial situation, you may be approved with an LVR as high as 90% or 95%.
In order to be approved for a 100% LVR, you would need a guarantor.
Most lenders will require Lenders Mortgage Insurance (LMI) for LVRs of 80% and over. LMI is a way for the lender to insure against high-risk loans.
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Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
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 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
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 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded Mortgage of the Year 2012 – this multi-award winner features 100% offset and a loyalty 0.25% rate drop after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
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 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
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