What does LVR mean and how do I calculate my LVR?

I like to think of Loan to Value Ratio (or LVR as it’s commonly known) as how much the bank owns of your property versus how much you own.

To calculate your loan to value ratio, simply divide your current mortgage by the estimated value of your property.

For example if you have a mortgage of $350,000 and your home is estimated to be worth $500,000, your LVR is 70%

$350,000 ÷ $500,000 = 70%

This basically means that the bank owns 70% of your property and you own the other 30%

If you feel you own more of your property than the bank and you aren’t getting the interest rates that you deserve, let me see what I can do for you. Phone 021 662 205 or email ryan.amoore@loanmarket.co.nz