Glossary
Loan-to-Value Ratio (LTV)
Loan-to-Value (LTV) ratio is the financed amount divided by the property's purchase price or accepted valuation. The applicable maximum and approved margin depend on regulation, lender policy, applicant and transaction.
In Detail
LTV affects the equity and valuation shortfall a buyer must fund. Do not infer an approved margin from citizenship, tenure or marketing material. Ask each lender for a written illustration using the same applicant, property and purchase price, and confirm whether the percentage applies to purchase price or the lender's accepted valuation.
Investment Impact
A lower approved LTV increases the immediate cash requirement. Include the deposit, any valuation shortfall, fees, duties and a contingency reserve before signing.
Frequently Asked Questions
Why does LTV drop to 70% for my third property?
Regulatory and lender limits can differ by borrower and transaction. Ask the lender to identify which limit applies and provide the approved amount in writing.
Can I get 90% LTV on a high-value property?
It depends on current regulation, lender policy, applicant and valuation. Do not use a generic percentage; compare current written offers.