What is a loan-to-value ratio?

Author
MyProperty Namibia
Namibia's #1 independent property portal

Loan-to-value (LTV) ratio is an assessment of lending risk that financial institutions and other lenders examine before approving a mortgage. Typically, assessments with high LTV ratios are higher risk and, therefore, if the mortgage is approved, the loan costs the borrower more.

Additionally, a loan with a high LTV ratio may require the borrower to purchase mortgage insurance to offset the risk to the lender.

Home Loans Property News
Everything you need to know about your credit score
Buyers
Everything you need to know about your credit score
21 Nov 2024
When buying a home in Namibia, your credit score is your most powerful tool. This three-digit number doesn’t just influence whether you qualify for a home loan—it can also determine how much you can borrow and the interest rate you’ll secure. Understanding how your credit score works, why it matters, and how to improve it can put you on the path to successful homeownership.
read more
How to negotiate as first-time home buyer
Market
How to negotiate as first-time home buyer
13 Nov 2024
Embarking on the journey to homeownership is exhilarating, but it also brings challenges—especially when it comes to negotiation. Securing the best deal on your dream home requires strategy, patience, and preparation.
read more
Home loan or cash? What you need to know when buying a home.
Buyers
Home loan or cash? What you need to know when buying a home.
28 Oct 2024
Buying a home is a significant financial commitment, and if you have enough funds to pay in cash, the idea of owning your property outright might be tempting. 
read more
How to calculate interest rates and what you need to know as a home owner
home owners
How to calculate interest rates and what you need to know as a home owner
14 Oct 2024
When considering purchasing a home, it’s essential to understand how interest rates will impact your monthly expenses. For homeowners, this can be especially important, as interest rates affect not only home loans but also all other forms of credit, such as car financing and credit cards.
read more
Real Estate Tools
Bond Calculator
Calculate the estimated repayments on a home loan and savings with extra payments