The Loan to Value Ratio (LVR) is the amount you’re borrowing represented as a percentage of the property’s value. The loan amount is divided by the purchase price of the valuation amount, then multiplied by 100 to make a percentage. For example, if you’re purchasing a home worth $500,000 and you wish to borrow $400,000 (so, you have a $100,000 deposit), the LVR is 80%.
Read more about LVR
here.