LVR Clause Samples

The LVR (Loan-to-Value Ratio) clause defines the maximum percentage of a property's value that a lender is willing to finance through a loan. For example, if the LVR is set at 80%, the borrower must provide at least 20% of the property's value as a deposit, with the lender covering the remaining 80%. This clause is crucial for managing the lender's risk exposure, ensuring that borrowers have sufficient equity in the property and reducing the likelihood of losses if the property value declines.