Dictionary

LTV

LTV is a common abbreviation in CRE. It represents a ratio – specifically the loan amount to the value of the property.

The loan amount is generally the value owing to the debt funder (bank), and this value can differ to the total loan facility.

For example

Property value is R100M

Loan amount is R40M

The LTV ratio is 40%

Out of interest, the property value less the loan value is known as the property equity.

Related terms

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