What is the Maximum LVR for Private Lending? 2025 Guide
Typically 70-75% for first mortgages, up to 80% combined for second mortgages. Learn everything about what is the maximum lvr for private lending in this guide.
What is the Maximum LVR for Private Lending?
Typically 70-75% for first mortgages, up to 80% combined for second mortgages.
This is one of the most common questions about private lending in Australia. Here's everything you need to know.
The Short Answer
Typically 70-75% for first mortgages, up to 80% combined for second mortgages.
Detailed Explanation
Private lending LVR (Loan-to-Value Ratio) limits depend on loan type and property:
First Mortgage LVRs:
| Property Type | Typical Max LVR |
|---|---|
| Metro residential | 70-75% |
| Regional residential | 65-70% |
| Commercial property | 60-65% |
| Vacant land | 50-60% |
| Development sites | 60-70% (of GRV) |
Second Mortgage LVRs:
- Combined LVR (first + second): Up to 80%
- Some lenders stretch to 85% for strong exits
Factors Affecting Your LVR:
- Property location - Metro vs regional
- Property type - House vs unit vs commercial
- Exit strategy - Sale vs refinance
- Borrower experience - First-time vs experienced
- Market conditions - Current property market
GRV for Development:
Development loans use Gross Realisation Value (GRV):
- LVR calculated on completed project value
- Typically 65-70% of GRV
- Includes construction costs
Key Points to Remember
- Private lending is a legitimate, regulated form of finance in Australia
- It's designed for borrowers who need speed, flexibility, or non-standard solutions
- Always understand your obligations before signing
- Work with reputable, verifiable lenders
- Have a clear exit strategy
Related Questions
Can I get 80% LVR from a private lender?
This relates to what is the maximum lvr for private lending. The key consideration is understanding how private lending works differently from bank lending, focusing on property security rather than traditional lending criteria.
How is LVR calculated for development loans?
This relates to what is the maximum lvr for private lending. The key consideration is understanding how private lending works differently from bank lending, focusing on property security rather than traditional lending criteria.
What LVR can I get with bad credit?
This relates to what is the maximum lvr for private lending. The key consideration is understanding how private lending works differently from bank lending, focusing on property security rather than traditional lending criteria.
Getting Expert Advice
If you have specific questions about what is the maximum lvr for private lending, consider:
- Consulting a finance broker - They understand multiple lender options
- Seeking legal advice - Especially for complex situations
- Comparing multiple lenders - Terms vary significantly
- Using lending marketplaces - Access multiple options at once
Next Steps
Ready to explore private lending options?
On Introducr, you can post your funding request and receive competitive offers from verified private lenders within 48 hours. Compare rates, terms, and approval timeframes to find the best solution for your situation.
Disclaimer: This information is general in nature. Your situation may have specific considerations. Seek independent financial advice for your circumstances.
Last updated: January 2025
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