Definitions for "Loan-To-Value-Ratio"
The relationship between the amount of a home mortgage and the total value of the property. Lenders may limit their maximum mortgage to 80 to 90 percent of the value.
the relationship between the amount of a mortgage and the total value of the property,; Example: $100,000 Purchase Price with $95,000 loan, LTV is 95%.
The LVR is a ratio of the total amount of money borrowed versus the total value of all securities (properties) held. This is very important in determining how much you can borrow. In most cases, it is possible to borrow up to 95% of the value of the property you are purchasing. LMI is usually payable on LVR's of 80% or higher.