Loan-to-Value (LTV)

Loan-to-value ratio expresses the mortgage amount as a percentage of property value, determining maximum borrowing capacity, down payment requirements, and risk assessment for lenders.

LTV FormulaCalculation
Property valueBank valuation or purchase price (lower)
Loan amountRequested financing
LTV ratio(Loan / Value) × 100
Down payment(1 - LTV) × Value
UAE Residential LTV LimitsMaximum
First property, UAE nationals80%
First property, expats75-80%
Second property65-70%
Third+ property60-65%
Commercial property50-60%
LTV Impact ExampleAED 2M Property
75% LTVAED 1,500,000 loan, AED 500,000 down
65% LTVAED 1,300,000 loan, AED 700,000 down
50% LTVAED 1,000,000 loan, AED 1,000,000 down


Related Terms

LeverageLeverage RatioMortgage (Residential)Green MortgageCommercial MortgageMortgage CapMortgage InsuranceMortgage TermMortgage Processing Fee Fixed-Rate Mortgage Fixed-Rate MortgageCapped Rate MortgageMortgage Registration FeeFloating Rate MortgageFixed Payment MortgagePre-Approval (Mortgage)Buy-to-Let MortgageDown PaymentBank Valuation Mortgage Requirements

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