LVR and equity, quickly
Loan-to-value ratio is your loan as a percentage of the property's value — the lower it is, the more equity you're sitting on, and the more borrowing power that equity can unlock.
LVR is your loan balance divided by the property's current value. A $600,000 loan against an $800,000 property is a 75% LVR — and the other 25% is your equity in the property.
Equity matters because lenders use it to work out how much more you can borrow, whether that's to refinance, buy again, or fund a renovation. As a property's value grows and your loan balance shrinks, your LVR falls and your usable equity grows with it.
BrickTrack tracks LVR and equity per property as loan balances and valuations update, so you can see where you stand without pulling the numbers together by hand. For the full breakdown, see What Is LVR? on the blog.