Other things equal, higher LVRs tend to be associated with a greater risk of default (and greater loss for the lender in the case of default).9 Graph 4 shows current LVRs for owner-occupiers and investor loans, split into interest-only and principal-and-interest loans.
I should emphasise again that the Securitisation Dataset may not be entirely representative of the set of all mortgages, particularly when it comes to LVRs.