What does loan to value ratio mean?
You might hear the term LVR or loan to value ratio thrown around a bit.
The ratio is the price of your property divided by the loan amount. For example if your property is worth $300k and your loan is $240k simply do the following:
LOAN/VALUE x 100 (for percentage rate) = LVR
(240,000/300,000) x 100 = 80
So your loan to value ratio is 80%.
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