Your Loan to Value Ratio (LVR) is one of those terms you’ll hear a lot when applying for a loan, but not every first home buyer understands how it actually impacts your interest rate, your approval, or how much flexibility it can open up for your future.

In this episode, Jack Elliott and Chris Bates break down LVR in clear, simple terms, what it is, how it’s calculated, and why it matters so much for your first home strategy.

You’ll also learn how LVR works under the First Home Guarantee, what to think about when borrowing at 95% LVR, and how your LVR improves naturally over time as you build equity.

In this episode:

🔑 What LVR actually is and how it’s calculated

🔑 Why banks care about LVR and how it affects rates

🔑 How LVR influences lending policy and flexibility

🔑 How LVR works under the First Home Guarantee (5% Deposit Scheme)

🔑 How LVR and equity work together as your loan and property value change

Timestamps

00:00 - Introduction to Loan to Value Ratio (LVR

02:04 - What is Loan to Value Ratio (LVR) & Why it Matters?

05:52 - LVR and Lending Policy

08:27 - LVR Under the First Home Guarantee (5% Deposit Scheme)

11:48 - Understanding the Risk of 95 % LVR

12:49 - The Relationship Between LVR and Equity

14:59 - Using LVR to Build Leverage and Flexibility

18:22 - LVR Episode Recap

Unlock your Free Resources

Episode 6 | Unlocking Asset Quality: How to Choose the Right Property as a First Home Buyer

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