News
30 MAR, 2026
5 MIN READ

What Is LVR in Property Finance and Why Does It Matter?

LVR Criteria
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What Is LVR?

Loan-to-Value Ratio is the single most important number in property lending. Here's how it's calculated and how to maximise your borrowing position.

This guide explains the main funding considerations, the information lenders usually review, and how to prepare a cleaner property finance request.

Key point: The strongest submissions make the property, loan purpose and repayment path easy to understand.

How LVR Is Calculated

Lenders assess the security position, borrower contribution, loan term and exit strategy together. A deal can be strong when the numbers are realistic and the supporting documents are clear.

What to prepare

  • Property address, security details and current ownership information
  • Requested loan amount, purpose of funds and preferred settlement timing
  • Valuation, appraisal, sales evidence or project feasibility where available
  • Clear exit strategy through sale, refinance, retained debt or project completion
Loan Size
Up to $10M
Max LVR
Asset-led
Letter of Offer
48 hrs
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Why LVR Matters

Non-bank finance can be useful when the project is commercially sound but does not fit a standard bank checklist. The assessment still needs evidence, but it can focus more directly on the asset and exit.

Common lender questions

  • Security: What property supports the loan?
  • Equity: How much borrower contribution or value buffer is in the deal?
  • Timing: When are funds needed and how long is the facility required?
  • Exit: How will the loan be repaid?
No unnecessary delays. A clean brief helps the lender issue terms faster and reduces back-and-forth during approval.

How to Improve Your LVR Position

Before approaching a lender, confirm the loan amount, the available equity, the security property, and the preferred repayment path. This gives the funding request a practical structure from the start.

A stronger request usually includes

  • A concise summary of the transaction and borrower background
  • Supporting evidence for value, costs, income or sales assumptions
  • A realistic timeframe with enough room for approval, settlement and repayment
  • A clear explanation of why the proposed structure solves the funding need
"We assess the deal, not the checklist. If the property is strong and the exit is clear, we find a way to fund it - and we do it fast."
- Commercial Property Funding
Tags
  • LVR
  • Criteria
  • Property Finance
  • For Developers