LTV: Loan to Value

What is LTV calculated from?

From the value of the property you put up as security with the bank. Not from the price you pay for it.

That difference matters more often than you'd expect. The bank has a valuation done and calculates from that. If the valuation comes in below the purchase price, your LTV goes up and the bank lends you less, even though you agreed the price with the seller.

What is the limit?

No more than 80%. If you're under 36 and buying a home for yourself, 90%.

This cap is binding. It is set by the Czech National Bank and banks must keep to it, so it cannot be negotiated.

For properties bought to let, or as a third or further property, the CNB has recommended a stricter 70% since 1 April 2026. It is a recommendation, not a legal limit, but banks follow it.

Can the limit be exceeded?

In exceptional cases, yes. A bank may provide part of its new mortgages above the limit, but only up to 5% of the volume it lent in the previous quarter.

It is a small allowance and the bank guards it closely. The bank decides on it alone, so you cannot rely on it or claim it as a right. What this means for you: a refusal on LTV grounds need not be final, especially for an otherwise strong application. It's worth asking about it specifically, and just as worth trying another bank, since each one has its own allowance and its own view of who gets into it.

LTV changes over time

It isn't a figure that stays with you forever. As you repay the principal, the debt falls, and provided the property doesn't lose value, LTV falls with it.

This is the most commonly missed opportunity. After a few years of repayments you may move into a lower band, where banks offer a better rate, but your bank won't offer this to you on its own. The opportunity opens up when the fixed-rate period ends, when you can refinance the mortgage without a penalty.

Why does LTV affect the rate?

The more money you put into the property yourself, the less risk the bank carries. If it had to sell the security, it would recover its money more easily.

Banks therefore work with bands, most often up to 70%, up to 80% and up to 90%. A lower band usually means a better rate, so moving down a band can be worth more than negotiating.

How can you lower your LTV?

Two ways. Either add your own money, or increase the security.

The second way means putting up a further property as security, typically your parents' flat. This increases the security, so the same loan amount fits within the limit. The cost is that if you fail to repay, the bank can pursue both properties. We've covered this in detail on the Mortgage without savings page.

What if the valuation comes in below the purchase price?

Then the calculation uses the valuation, and you have to make up the shortfall yourself.

Example: you agree a price of CZK 5 million for a flat, and the valuer values it at CZK 4.6 million. At eighty per cent, the bank lends CZK 3.68 million instead of CZK 4 million, so instead of one million you need CZK 1.32 million.

That's why it pays to know the valuation before you sign a reservation agreement with a deadline and a deposit. For a build or renovation, the value used is the value after the work is finished, not the current state; see the Mortgage for building and renovation page for details.

Example

A flat for CZK 5 million, with a matching valuation. The bank lends at most CZK 4 million, that is, 80%, and you make up the remaining million.

If you were under 36 and it was your own home, the bank would lend CZK 4.5 million and you'd make up CZK 500,000.