Finance question
What LVR can I get on a property-backed business loan?
It depends on the property and the lender. LVR, the loan as a share of the property's value, is set by the type and location of the security, the purpose of the funds and the lender's appetite. There is no single number. The job is finding the lender that lends highest against your particular property.
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The short answer
The property sets the ratio
LVR means loan to value ratio, the size of the loan measured against the value of the property securing it. There is no flat figure that applies to every deal. Standard residential in a metro area tends to support a higher ratio than specialised commercial or rural security, and each lender draws its own line.
Purpose and profile move the number too. A straightforward purchase or refinance can sit at a different ratio to a cash-out for working capital. Because property secures the loan, pricing stays at single-digit rates, and many of these deals settle without financials, with the equity doing the work.
This is where a broker earns its keep. The same property can attract very different ratios from different lenders. We match your property, your purpose and your timeline to the lender that lends highest and prices best against that exact security, rather than accepting the first offer.
What sets your LVR?
The inputs that decide the ratio.
Property type
Residential, commercial or rural security each carry a different ceiling.
Location and marketability
Easily sold, well-located property supports a higher ratio.
Purpose of funds
A purchase, refinance or cash-out can each land differently.
Lender appetite
Each lender draws its own line, so the panel matters.
Why the ratio is not fixed
Lenders differ
One lender's cap is another's starting point. The panel decides how high you can go.
Property quality counts
Standard, well-located security lifts the ratio; specialised property tightens it.
Structure lifts capacity
Cross-securing a second property can raise the total you can borrow.
A real example
An owner needs to release equity from a metro commercial unit for a fit-out. One lender caps the ratio low against that property type; another, comfortable with the location and tenant, lends notably higher on the same valuation. The higher offer settled at a single-digit rate. Subject to valuation. Illustrative only.
Common questions
Frequently asked questions
Is there a standard LVR for these loans?
No. The ratio is set by the property type, its location, the purpose of the funds and each lender's appetite, so it varies deal to deal.
Does commercial property get a lower LVR than a home?
Often, yes. Specialised or commercial security tends to sit lower than standard residential, though the right lender can narrow that gap.
Can I borrow more by using a second property?
Yes. Cross-securing an additional property can lift the total facility above what one property alone supports.
Do I need financials to get a higher ratio?
For many property-backed deals, no. The equity carries the risk, so a strong ratio can be reached without up-to-date financials.