The Loan to Value ratio (LVR) is the amount of your loan compared to the value of your property. LVR is calculated by dividing the amount of the loan by the value of the property. For example, if the property is worth $500,000 and you have a deposit of $100,000, the LVR will be 80%. It affects your loan application because lenders will not give you a home loan if your LVR is above a certain level, usually 90%. If your LVR is between 80-90% (in other words, you have more than 10% deposit but less than 20%), you will usually have to pay Lenders Mortgage Insurance (LMI).