Glossary entry
Loan-to-value ratio (LVR)
A measure of loan amount compared to collateral value, used to assess risk, especially in secured lending.
Category
Lending technology
Definition
How it’s calculated
LVR = loan amount ÷ property/asset value.
Why it matters
Higher LVR generally implies higher risk and may require stricter policy, pricing, or mortgage insurance.
Related terms
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