Security property location and LVR

Getting started

To find out the category for the security property’s location refer to the Macquarie Serviceability calculator. 

Ordering an upfront valuation will be important to know if the application is within our credit policy. However, we expect this service to be used with accurate data and in good faith. The PropertyHub system will select the fastest possible valuation based on the security, lending purpose and application data you enter. This includes using an accurate ‘estimated market value’ and ‘loan amount’, and only completing the ‘Do any of these apply?’ section where appropriate. Please note if you provide any inaccurate information, your valuation will be delayed.

Maximum LVR per loan facility

Based on purpose and repayment type:

Loans with interest only repayments	80% LVR
Investor loans with principal and interest repayments	90% LVR inclusive of low deposit fee capitalisation. Note: if any portion of the loan has an interest only repayment method, the maximum LVR is 80%
Refinance loans	90% LVR inclusive of low deposit fee capitalisation
Equity release loans	80% LVR - refer policy section 1A of Macquarie Residential Home Loans Credit guidelines
Owner occupied purchases with principal and interest repayments	95% LVR inclusive of low deposit fee capitalisation

Maximum allowable LVR per security

Based on security property value and location:

	Maximum allowable LVR* *Subject to all additional LVR caps identified throughout the policy also being met (including Valuation Red Flag requirements)
	<=70%	>70% and <= 80%	>80% and <=95% (LDF inclusive)
Metro (Category 1)	$10m property limit For properties > $10m a maximum LVR of 60% applies (or $7m loan amount where higher)	$5m property limit	$1.5m property limit
Non-metro & Regional (Categories 2&3)	$3m property limit For properties > $10m a maximum LVR of 60% applies	$1.5m property limit	$750,000 property limit
Other (Category 4)	Outside policy - Refer BDM		Outside policy
Multiple security properties	Where a facility is secured by multiple properties, a maximum LVR of 80% per security applies
Valuation Red Flags	The following are considered valuation red flags (higher risk characteristics) an extended selling period requirement of greater than 6 months a Market Segment Conditions Risk Rating of 4 or 5 any "5" risk ratings For properties valued above $3m (Cat 1) and above $1m (Cat 2/3), where a valuation red flag is evident, a maximum LVR of 75% applies for security. The LVR cannot exceed 80% for any security where a valuation red flag is evident.

Maximum LVR/Loan amount per security - other security features

High risk postcode location	80% LVR Refer to ‘Security Details’ section on the Manual Servicing Calculator to see if a High Risk postcode has been flagged once the postcode is entered.
High density apartment/unit(s)	80% LVR Where any portion of the loan is interest only, the LVR is capped at 70%. Refer to ‘Security Details’ section on the Manual Servicing Calculator to see if any High Density postcode has been flagged once the postcode is entered.
Restricted Security - Studio/Bedsitter	Refer to BDM.
Restricted securities	Refer to restricted securities list in section 4A of Macquarie Residential Home Loans Credit guidelines.
Stratum Title (VIC) units	85% LVR inclusive of low deposit fee capitalisation.
Off the plan	90% LVR inclusive of low deposit fee capitalisation.

Maximum LVR/Loan amount per security - land size

Up to 4 hectares	Standard LVR parameters.
>4 up to 10 hectares	80% LVR subject to location category limits.
>10 up to 20 hectares	70% LVR inclusive of low deposit fee capitalisation.
>20 up to 40 hectares	60% LVR subject to location category limits.
>40 hectares	Unacceptable.

Loans are subject to credit approval including satisfactory valuations with acceptable risk characteristics. 

For more information, refer to the Macquarie Residential Home Loans Credit guidelines.  

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