🔍 What Is LVR?
LVR is the percentage of the property’s value that you’re borrowing.
Formula:
Loan Amount ÷ Property Value × 100
For example, if you’re borrowing $750,000 for a property valued at $1 million, your LVR is 75%.
Why LVR Matters in Commercial Lending
- Lower LVR = Lower Risk
Commercial lenders prefer lower LVRs—typically under 70%—because it shows you have more equity in the deal. - Higher LVR = Tighter Conditions
If your LVR creeps above 75%, expect stricter terms, higher interest rates, or the need for additional security.
How Molomo Helps
At Molomo, we assess your LVR early and help structure your loan to improve approval chances. Whether you’re buying a warehouse, office, or retail space, we tailor your finance to suit your business model and long-term goals.
Want to know your LVR and what it means for your loan?
Let’s run the numbers and build a smarter strategy.
