Home · RATIOXA GLOSSARY
Loan-to-value
Loan relative to the property value used by the lender. It is not necessarily the loan divided by purchase price.
Simple definition
Loan relative to the property value used by the lender. It is not necessarily the loan divided by purchase price.
Why it matters
This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.
Worked example
A €320,000 loan on a €400,000 lending value is 80% LTV.