What is LVR and what does that mean?
LVR stands for Loan to Value Ratio. The LVR is the amount you are borrowing as a percentage of the value of the property offered as security. To work out the LVR, divide the amount you are borrowing into the value of the property e.g. $200,000 (Loan Amount) $290,000 (Property Value) = 69% LVR Q. What is Lenders Mortgage Insurance and how much does it cost? Lenders Mortgage Insurance (LMI) is a payment made by the borrower that protects the lender in the unlikely case that a borrower defaults and a loss is evident after the mortgaged property is sold.The premium for LMI is payable once only at the commencement of the loan and protects the lender for the life of the loan.Lenders usually require LMI whenever the Loan to Value Ratio (LVR) is above 80%. LMI may be required when LVR is below 80% for some types of property. If LMI is required, you will also need to prove you have saved at least 5% of the purchase price. LMI is provided by an underwriter outside the Lender. The premiums are de
