LTV (loan-to-value) on a mortgage
LTV expresses how much of the value of a mortgaged property is financed by the loan. If the bank values a flat at 6 million and lends 4.8 million, the LTV is 80%. It is calculated from the value recognised by the bank, which may differ from the purchase price.
Also known as: loan to value, 80% mortgage, investment mortgage, mortgage deposit own funds
How to calculate your LTV
Divide the loan amount by the value of the collateral and multiply the result by one hundred. To illustrate: the bank values a flat at 6 million Kč and lends you 4.8 million Kč. The LTV comes out at 80%. If the purchase price is 6.5 million Kč, you have to cover the 1.7 million Kč difference from other sources. On top of that, add the other costs of the purchase.
With multiple pledges or concurrent loans, the assessment becomes more complex. An acceptable LTV alone does not guarantee you a mortgage. The bank also looks at your income, existing debts and other conditions.
Limits in 2026
As of 13 September 2026, the Czech National Bank (ČNB) sets a general upper LTV limit of 80%. Applicants under 36 buying a home to live in have a limit of 90%. For investment mortgages, from 1 April 2026 the ČNB recommends a stricter LTV limit of 70% and a DTI of 7. DTI is the ratio of total debt to net annual income.
Under this recommendation, the investment category covers buying a residential property intended for rent, or buying a third or subsequent residential property. So don’t count on the benefits for younger applicants when buying an investment flat. Before you reserve a flat, have the bank confirm your specific financing options. Also set aside a reserve for running costs. The rules may change.
Before you start looking for an investment flat, put together a budget that covers the purchase price, financing and ongoing running costs. A preliminary agreement with your bank will help you narrow down which listings are realistic. When budgeting for running costs, include property management, repairs and months without a tenant.
Sources checked on 13/09/2026. A general explanation does not replace a review of your specific contract or individual legal or tax advice.
← Back to the glossaryWould you like a rental without worries?
We take care of tenants, contracts, payment monitoring and repairs. In a free consultation we go through your flat and recommend how to set the management up.