There are five forms of title in Australia. Each of these has differing issues regarding sale ability and enforcement of the mortgage.
The following is a general guideline only.
The ease with which a property can be sold, the sale price achieved and the time a property takes to sell are determined by the level of demand for that particular type of property in relation to the available supply. Where a lender and/or mortgage insurer is concerned about an oversupply in a market or a reduced demand resulting in possible extended sale periods or reduced sale prices, they will reduce the maximum LVRs.
These policies change as market conditions change.
Two examples of reduced LVRs due to location are high-rise apartments in major CBD areas and city centres with populations of less than ten thousand.