LVR

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comdom
Participant
@comdom
Join Date: 2003
Post Count: 92
October 28, 2003 - 2:06 am
How do you calculate LVR?
Thanks Dom []
wayneL
Member
@waynel
Join Date: 2003
Post Count: 585
October 28, 2003 - 2:14 am
It all in the name Con… er Comdom[]
Loan-Valuation-Ratio
i.e. Loan divided by Valuation.
e.g. Asset is valued at say 100,000 and you have a 70,000 loan against it.
LVR = 70%
Then lets say that your asset appreciates in value to 140,000
your LVR is now 50%
Cheers
Wayne
http://www.tradingforaliving.info
comdom
Participant
@comdom
Join Date: 2003
Post Count: 92
October 28, 2003 - 2:29 am
Thanks waynl,
But say you have 4 properties
Eg loan 1 $140000 valuation $170000
Loan 2 $150000 Valuation $180000
Loan 3 $142000 Valuation $250000
Loan 4 $170000 Valuation $250000
How would the bank calculate this?
Thanks Dom
wayneL
Member
@waynel
Join Date: 2003
Post Count: 585
October 28, 2003 - 2:39 am
simply add them all together.
you have assets valued at $850,000 and loans of $602,000
602,000 divided by 850,000 = 70.82%
http://www.tradingforaliving.info
comdom
Participant
@comdom
Join Date: 2003
Post Count: 92
October 28, 2003 - 2:45 am
Thanks again Waynel,
In this case i should not have to take out LMI hopefully and save me a bit of money or do other factors apply
Dom
MobileMortgage3
Member
@mobilemortgage3
Join Date: 2003
Post Count: 21
October 28, 2003 - 5:21 am
Hi Dom,
Can I suggest you talk to a good mortgage broker, if you haven’t already?
Having your loans structured the correct way, will save you from problems later on,
I am in Victoria, but Simon is a bit closer to you, he contributes here on a regular basis and may be able to help you, his contact details are below.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985
Good luck, Regards Steven
Mobile Mortgage
[email protected]
Phone 0402483216