LVR stands for “loan-to-value ratio” 💡 LVR helps us determine how much deposit we need to buy a property 🏠, how much money we need to borrow from lenders 💴, and how much equity we have 📊 LVR is the ratio of the loan amount to the property’s value 📈: For example, if we borrow $400k to purchase a $500k property: LVR = Loan amount / Property value LVR = $400k / $500k LVR = 0.8 or 80% Why is LVR important? 1️⃣ To help you determine how much deposit you need. Usually, people save up a 20% deposit, which makes their LVR 80%. However, with the rise in housing prices, investors are looking to buy property with smaller deposits 📉 2️⃣ Lender Mortgage Insurance (LMI). When your deposit is less than 20% and your LVR is higher than 80%, banks require you to pay for LMI as it serves as their protection if you are unable to repay the amount you borrowed 🔐 3️⃣ Professional privileges. Professionals such as doctors, dentists, and accountants can qualify for loans with up to 90% LVR without having to pay for LMI. This allows them to start investing in property with just a 10% deposit 💼 ⚖️ LVR is also a good metric to track our property portfolio because it measures equity graph 📊 The lower the LVR, the more equity we have. We can reduce LVR by paying down our loans money 💰, renovating the property ⚒️, or seeing market growth 📈 🔖 Save and share for more tips Adapted from JD Capital #FinanceForTomorrow #MortgageBrokers #PropertyInvestmentExperts #LendingExperts #sydney #LVR #loans #investmentAU #investmenttips #propertyinvestment #PropertyInvestment #MortgageTips #BankingStrategy #AustraliaProperty #InvestmentLending #FinancialPlanning #RealEstatelnvesting #InvestmentSuccess #RealEstate #LVR #HomeBuying #FinancialTips #PropertyPortfolio #Investing #Equity #Mortgage #FinanceTips