What LVR asks
Loan-to-value ratio compares lending with the value of the property or properties used as security. It is mainly a security and deposit question, and Reserve Bank restrictions on high-LVR lending are limits on banks rather than a guarantee of an individual outcome.
What DTI asks
Debt-to-income compares relevant debt with income. Reserve Bank DTI restrictions are a bank-level guardrail; a bank still applies its own affordability, evidence, property, and credit assessment.
Why the measures do not replace each other
A borrower can have substantial equity and still need to explain income, expenses, and existing debt. Another borrower can have strong income but need more deposit or property evidence. Record both sides of the picture.
Do not use a headline threshold as a promise
Settings, exemptions, lender policies, and the facts used in an assessment can change. Check the current Reserve Bank material and the receiving lender’s requirements rather than calculating an assumed approval.
Evidence categories to organise
- Property value evidence
- Proposed lending
- Existing secured debt
- Income evidence
- Other debt and limits
- Current Reserve Bank settings
- Lender-specific requirements
This guide is general information only. MoreGage does not provide regulated financial advice, a lending assessment, approval, or an offer.