Calculating your LVR (Loan to Value Ratio)?

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If you’re a first home buyer, it’s important to understand your Loan to Value Ratio (LVR), which represents value of your home loan as a percentage of the property’s value.

Your LVR helps determine how much you may be able to borrow, the interest rate you’ll be offered, and whether you’ll need to pay for Lenders Mortgage Insurance (LMI).

LVR is calculated by:
Loan amount (purchase price ➖deposit) ➗ the property value
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