Loan-to-value (LTV)
The mortgage as a share of the property's price or valuation. Owner-occupiers can borrow up to 90%, so they need at least a 10% deposit.
What it means
Loan-to-value compares your mortgage to the value of the home. Under the Central Bank mortgage measures first-time buyers and second and subsequent buyers can borrow up to 90%. Buy-to-let buyers are limited to 70%.
LTV also matters for price. Some lenders charge a lower rate at a lower LTV, so a bigger deposit can cut your rate as well as your loan.
Help to Buy has its own LTV rule pointing the other way: your mortgage must be at least 70% of the price for you to qualify.
Formula
LTV = mortgage / property value x 100
Example
A €400,000 home with a €40,000 deposit needs a €360,000 mortgage: an LTV of 90%, the maximum allowed.
Work it out
Mortgage calculatorRelated terms
DepositThe part of the price you pay from your own money. Central Bank rules require at least 10% for a home you will live in and 30% for a buy-to-let.Loan-to-income (LTI)The Central Bank cap on a home loan as a multiple of gross income: 4 times for first-time buyers and 3.5 times for second and subsequent buyers.Help to Buy (HTB)A refund of income tax and DIRT for first-time buyers of new homes up to €500,000: the lesser of €30,000, 10% of the price or 4 years' tax.