What does MER stand for in relation to managed funds? And what does LVR mean in relation to bank loans?

Expense Ratio
The percentage of total fund assets that is used to cover expenses associated with the operation of a mutual fund. This amount is taken out of the fund's assets and lowers the return that fund holders achieve. These expenses include management fees and operating expenses. The management fee is the fee that is charged to the fund by the portfolio manager, and it is often a fixed percentage. The operating expenses are the expenses that the fund incurs through operation and this can include brokerage fees, taxes, investor services, and interest expenses.

Also known as the "management expense ratio" (MER).


Loan to Value (LTV) is a mathematical calculation which expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. The resulting numerical calculation is commonly referred to as the Loan to Value ratio.

Loan to Value is one of the key risk factors that lenders assess when qualifying borrowers for a mortgage. The risk of default is always at the forefront of lending decisions and the likelihood of a lender absorbing a loss in the foreclosure process increases as the amount of equity decreases. Therefore, as the LTV ratios of a loan increase the qualification guidelines for certain mortgage programs become much more strict.

Low LTV ratios (below 80%) carry with them lower rates for lower-risk borrowers and allow lenders to consider higher-risk borrowers, such as those with low credit scores, previous late payments in their mortgage history, high debt-to-income ratios, high loan amounts or cash-out requirements, insufficient reserves and no income documentation. Higher LTV ratios are primarily reserved for borrowers with higher credit scores and a satisfactory mortgage history. 100% financing, or 100% LTV, is reserved for only the most creditworthy borrowers.