Loan-to-value ratio
The percentage of the value of a property that is financed by borrowing, i.e. lent against. The loan-to-value ratio refers to the mortgage lending value of a property, not the purchase price. Example: A property costs 300,000 euros and thus has a mortgage lending value of 270,000 euros (safety discount 10%). For a loan of 150,000 euros, the loan-to-value ratio is therefore 56%.
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