Loan to Value Ratio (LVR)

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Loan to Value Ratio (LVR)

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The proportion of your portfolio which is funded by borrowed versus your own money. For example if you
have $30,000 and you borrow a further $70,000, your LVR is 70% ($70,000 – $100,000).
An increase in investment value results in a decrease in the LVR and a decrease in the investment value
results in an increase in the LVR.
See also margin lending and debt to equity ratio.