What is LTV?

To qualify for a mortgage, lenders will look at the loan-to-value (LtV) ratio. LtV is a ratio, expressed as a percentage, of the requested amount of your mortgage divided by the purchase price or appraised value of your home.

For example, if the home you purchase or refinance is appraised at € 500.000 and you are requesting a loan for € 400,000, the LtV is 80% (€ 400,000 / € 500,000). The maximum LtV in 2021 is 100%.