LTV (loan to value)
LTVThe ratio of the loan amount to the value of the pledged property, in per cent. It is the ČNB's only binding limit for owner-occupier loans: at most 80 %, or 90 % if at least one applicant is under 36. A bank may exceed the limit on no more than 5 % of its loan volume per quarter. For investment mortgages the ČNB has recommended, without making it binding, an LTV of 70 % since 1 April 2026.
Example
A flat costs CZK 5,000,000 and the bank's valuation comes in at CZK 4,800,000. At 80 % LTV the bank lends at most CZK 3,840,000, and the buyer has to find CZK 1,160,000, not just a million. An applicant under 36 can get up to 90 %, i.e. CZK 4,320,000, and pays CZK 680,000 from their own funds.
In practice
LTV is calculated from the collateral value set by the bank's valuation; on a purchase, usually from the lower of the two figures, price or valuation. Rates are often tiered, with offers up to 70 % LTV frequently cheaper than the 80–90 % band. If own funds fall short, additional collateral in the form of another property brings LTV down. Plenty of buyers count on the purchase price and discover the gap only after the valuation.
How it differs
Frequently asked questions
What is LTV on a mortgage?
Loan to value: the loan as a percentage of the property's value, as set by the bank's valuation. A CZK 4,000,000 loan on a flat valued at CZK 5,000,000 is LTV 80 %.
What is the LTV limit in Czechia in 2026?
80 %, or 90 % if at least one applicant is under 36: the only binding ČNB limit for owner-occupied housing. For buy-to-let loans the ČNB has recommended 70 % since 1 April 2026.
Is LTV based on the price or the valuation?
On the bank's valuation of the collateral, and on a purchase usually on the lower of the price and the valuation. If the valuation comes in below the price, you cover the gap from your own money.
Related terms
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