A mortgage loan with a higher Loan-to-Value ratio (LVR) carries higher credit risk. Define LVR and explain

Fantastic news! We've Found the answer you've been seeking!

Question:

"A mortgage loan with a higher Loan-to-Value ratio (LVR) carries higher credit risk."
Define LVR and explain the statement above with a specific example of LVR.

Related Book For answer-question

Business Mathematics In Canada

ISBN: 978-0070009899

7th edition

Authors: Ernest Jerome

See More Books

Posted Date: Apr 15, 2024 11:59 AM

See More Questions

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
. If you drive12100miles per year, your car gets21miles per gallon, and the average cost of gasoline is $4.2per gallon, how much will you spend on gasoline per year (rounded to the nearest dollar)?...
Display the TERM_DESC, COURSE_NAME, BLDG_CODE and ROOM for every course evertaught by faculty member John Blanchard. Question 2 Display the S_LAST, S_FIRST, COURSE_NAME, TERM_DESC and GRADE values...
An inflatable structure used by a traveling circus has the shape of a half-circular cylinder with closed ends (see figure). The fabric and plastic structure is inflated by a small blower and has a...
The electron micrograph shows parts of some myofibrils in a striated muscle that is in a relaxed state. a. i. Name the parts labelled K, L and M. ii. How many myofibrils are visible in the electron...
The finalists can be viewed at http://www .sciencemag.org/projects/data-stories/finalists. Pick a video that interests you, watch it, and answer the following questions: (a) Give a link to the chosen...
Information related to Banzai Books Ltd. is as follows: balance per books at October 31, $41,847.85; November receipts, $173,528.91; November disbursements, $166,193.54; balance per bank statement at...
Design a plan that outlines how you would communicate, to the entire organization, these new metrics and their importance to supporting the recruiting process. Be certain to include steps for ongoing...
You have been invited to a private dinner at the home of a new business partner, and you would like to buy gifts for her two children. You know that one of the children is a boy. What is the...
Harvey and Marlyn Elliott are preparing their 2011 cash budget. Help the Elliotts reconcile the following differences, giving reasons to support your answers. a. Their only source of income is...
The McDonald family has prepared their annual cash budget for 2011. They have divided it into 12 monthly budgets. Although only one monthly budget balances, they have managed to balance the overall...
The Ecuadorian sucre finds peace (web exercise). Log in to www.pacific commerce.ubc.ca/xr to plot the Ecuadorian sucre over the period 19972012. What happened to the sucre in 2000?
Bill Long wants to set up a fund to pay for his daughters education. In order to pay her expenses, he will need $23,000 in 4 years, $24,300 in 5 years, $26,000 in 6 years, and $28,000 in 7 years. If...
Mapping central bank intervention strategies (web exercise). Log in to www .pacific.commerce.ubc.ca/xr to plot the Thai baht, Mexican peso, Indian rupee, and Egyptian pound against the U.S. dollar...
Imagine a country where religious factions inside a nation want to have their own separate homeland. The government refuses, claiming the territory in question, which commands the nations only source...
A parking lot charges $3 for the first hour (or part of an hour) and $2 for each succeeding hour (or part), up to a daily maximum of $10. (a) Sketch a graph of the cost of parking at this lot as a...
Financial items for George Karatsis IT Services on 31 May 2024 are presented below in alphabetical order. Required (a) Prepare a statement of financial position similar to the one in figure 2.2. (b)...
During the year ended 30 June 2024, Skilled Services, a provider of temporary secretary personnel, had collected receipts from clients for a total value of $$250000.$ Wages of $$136000$ had been...
Rebecca Tallance operates a rent a dress business from her home. She keeps her accounting records for business activities completely separate from her records for personal activities. At 30 June...

A mortgage loan with a higher Loan-to-Value ratio (LVR) carries higher credit risk. Define LVR and explain

Question:

Expert Answer:

Answer LoantoValue ratio LVR is a financial term used in the context of lending particularly in mort... View the full answer

Business Mathematics In Canada

Students also viewed these finance questions