LTV ratio

LTV – When buying a property with a loan, the bank specifies a certain limit up to which it may grant loans. The lending value included in it protects the bank in the event that the borrower can no longer meet his payment obligations and the property must be sold or, if necessary, foreclosed. The lending limit is set individually by each bank, but as a rule the limit is 80 percent of the mortgage lending value.

Loan-to-value ratio at a glance: Maximum framework for the loans to be granted

• Bank specifies the lending limit
• Each bank sets the limit individually
• As a rule, the limit is 80 percent of the mortgage lending value.

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