# Loan-to-value ratio (LVR)

> Your mortgage as a percentage of the property's value. A $480,000 loan on a $600,000 house is an LVR of 80%.

Banks use LVR to work out the deposit you need. The Reserve Bank limits how much banks can lend above 80% LVR, so many ask for a 20% deposit, but some will lend to buyers with 10%. With the [First Home Loan](https://buyingahouse.co.nz/buying/first-home-grant), some first home buyers can borrow with 5%.