Loan to Value Ratio (LVR) represents the percentage of a property’s value that a lender will finance. For investment properties in Victoria, as of December 2025, lenders generally apply stricter LVR limits than for owner-occupied homes, reflecting the increased risk associated with investment lending.
Currently in Melbourne, the maximum LVR for investment properties typically ranges from 80% to 90%, though this varies significantly between lenders and individual borrower circumstances. In 2026, we’re seeing lenders increasingly scrutinise income verification and serviceability calculations for investment loans. A lower deposit (higher LVR) usually means a higher interest rate and potentially Lenders Mortgage Insurance (LMI). In the Melbourne Eastern Suburbs, where property values are generally higher, a larger deposit is often required to secure a favourable LVR. For example, securing an 80% LVR on a $1.5 million property in Balwyn would require a $300,000 deposit. Potential sellers considering purchasing another property should factor in these LVR requirements when assessing their financial position. Fletchers’ experience across multiple generations shows that understanding these lending criteria is crucial for a smooth sales and purchase process.
Ultimately, the maximum LVR available will depend on the lender’s policies and the individual buyer’s financial profile.