1300 931 892

Loan Amount: $5,480,000

Loan to Value Ratio (LVR): 80%

Some people would believe that Banks think ‘the bigger loans are, the better they are’.

This isn’t the case… Banks will generally begin to reduce the amount they are willing to lend once the property value exceeds $5m. This is to ensure the Bank is not exposed to losing several million dollars on a single property in the event that the loan is not repaid.
Banks will lend up to 80% LVR for properties valued between $3m and $5m, so long as there are no risk factors identified in the Valuer’s report and the loan is not being used for Construction purposes. For properties valued over $5m Banks prefer to limit loans to 70% or 75% LVR.
Luckily for this family, York Finance was able to negotiate a $5.48m loan to be secured over the Luxury House at 80% LVR, and the family gets to live in their dream home!