Search: LVR
RBA Glossary definition for LVR
LVR – Loan-to-valuation ratio
Search Results
The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis
22 Jul 2020
RDP
2020-03
Figure 3: Distribution of Indexed LVRs. Balance-weighted share of securitised loans, June 2019. ... 0.89. Equity and housing market factors. Indexed LVR buckets (selected; base = 60–70).
https://www.rba.gov.au/publications/rdp/2020/2020-03/full.html
Results
22 Jul 2020
RDP
2020-03
0.89. Equity and housing market factors. Indexed LVR buckets (selected; base = 60–70). ... Figure 11: Stage One Hazard Ratios – LVR. Event: entries to 90+ day arrears.
https://www.rba.gov.au/publications/rdp/2020/2020-03/results.html
Appendix A: Summary Statistics and Variable Definitions
22 Jul 2020
RDP
2020-03
337,300. 296,100. 299,500. 293,200. Median indexed LVR. (c). 67. 72. 64. ... Variable name. Variable definition. Unit. Sources. Indexed scheduled LVR. Scheduled balance / (most recent property valuation x SA3 region housing price index).
https://www.rba.gov.au/publications/rdp/2020/2020-03/appendix-a.html
Discussion
22 Jul 2020
RDP
2020-03
The relative hazard ratio for indexed LVRs was slightly smaller, at 1.3. ... Hence the probability of foreclosure may be higher at all LVR levels in a regional shock.
https://www.rba.gov.au/publications/rdp/2020/2020-03/discussion.html
Estimation Strategy
22 Jul 2020
RDP
2020-03
Equity is measured by indexed scheduled LVR, which is specified as buckets in the model. ... Of particular concern may be the potential correlation between regional unemployment rates and housing prices, which are incorporated in the indexed LVR estimates
https://www.rba.gov.au/publications/rdp/2020/2020-03/estimation-strategy.html
Data Description
22 Jul 2020
RDP
2020-03
A loan is defined as having negative equity if its indexed LVR is above 100 (i.e. ... Figure 3: Distribution of Indexed LVRs. Balance-weighted share of securitised loans, June 2019.
https://www.rba.gov.au/publications/rdp/2020/2020-03/data-description.html
Appendix C: Robustness Checks – Multinomial Logit Models
22 Jul 2020
RDP
2020-03
Full repayment. Model stage:. One. One. Two. Two. Two. Indexed scheduled LVR (base = (50,60]). ... Original LVR (base = (0,60]). (60,80]. 1.013. (0.37). 1.035. (4.94). 0.867.
https://www.rba.gov.au/publications/rdp/2020/2020-03/appendix-c.html
Appendix B: Full Results
22 Jul 2020
RDP
2020-03
Base. Excl SEIFA. Base. Base. Base. Base. Indexed scheduled LVR (base = (60,70]). ... Base. Base. Indexed scheduled LVR (base = (60,70]). (0,30]. 0.783 (0.127).
https://www.rba.gov.au/publications/rdp/2020/2020-03/appendix-b.html
Stylised Facts
22 Jul 2020
RDP
2020-03
Figure 6: Cumulative Transitions. Transitions of securitised loans in 90+ day arrears, by indexed LVR. ... Footnotes. This figure is based on the indexed LVR at the point of entering arrears; results are little changed after accounting for subsequent
https://www.rba.gov.au/publications/rdp/2020/2020-03/stylised-facts.html
Conclusion and Policy Implications
22 Jul 2020
RDP
2020-03
While this suggests that policies aimed at lowering LVRs at origination can be useful in reducing the probability that borrowers experience negative equity and thereby lower the risk of foreclosures, this
https://www.rba.gov.au/publications/rdp/2020/2020-03/conclusion-and-policy-implications.html