About Loan-to-Value (LTV) Ratio

• • LTV (Loan-to-Value) is the ratio of your loan amount to the property value, expressed as a percentage
• • Formula: LTV = (Loan Amount / Property Value) × 100
• • Lower LTV = Better rates: Banks offer better interest rates for LTV below 80%
• • 100% LTV means a full loan with no deposit. Available for first-time buyers but may have higher rates
• • Your equity is the difference between property value and loan amount (your deposit)
• • 80% LTV or less typically gets you the best rates and terms from SA banks
• • A larger deposit (lower LTV) gives you more negotiating power with banks
• • LTV can change over time as you pay down your bond or as property values fluctuate
• • For informational purposes only - actual rates depend on credit score, income, and bank policies