What is an LVR?
A loan to value ratio (LVR) is the size of a mortgage compared with the property's value. An 80% LVR means a 20% deposit.
The Reserve Bank limits how much lending banks can do at high LVRs. From 1 December 2025, up to 25% of new owner occupier lending can be above an 80% LVR, and up to 10% of investor lending above a 70% LVR. New builds and Kāinga Ora First Home Loans are generally exempt.
A lower LVR often gets a better interest rate.
Example
A $600,000 loan on an $800,000 home is a 75% LVR.