loan to value ratio Archives - Pearl Financial

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Jun 23

How to calculate Loan-to-Value Ratio (LVR)

By Shane | Fundamentals

If you’re in the market to buy a new property or refinance an existing one, then the concept of Loan-To-Value ration (LVR) is an essential concept to understand. It is particularly important for property investors as it allows the astute investor to understand their equity position and whether they are able to start planning their next property acquisition.

In this article, we will cover off on what loan-to-value ratio is, why LVR is important, and how to calculate LVR.

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