A 95 per cent LVR home loan is a type of low-deposit home loan where you are only required to put 5 per cent of the total purchase price towards a deposit.
What is LVR in a home loan?
‘LVR’ is an acronym for 'loan-to-value ratio' or 'loan to valuation ratio', which refers to the loan amount you are borrowing, represented as a percentage of the property's value. When a lender looks at how much you want to borrow in your loan application, they will compare their own valuation of the property to how much of a deposit you can put down.
Many standard home loans in Australia have an 80 per cent LVR, meaning they require a 20 per cent deposit. There are other types of home loans available for owner occupiers and investors, including 70 per cent LVR home loans that require a 30 per cent deposit, 90 per cent LVR home loans that require a 10 per cent deposit, and 95 per cent LVR home loans that require a 5 per cent deposit.