Loan-to-Value (LTV) Calculator

One ratio that shapes your whole mortgage

Loan-to-value, or LTV, is the mortgage amount expressed as a percentage of the property’s value. Borrow €340,000 against a €400,000 home and your LTV is 85 percent. It is one of the most important numbers in any application, because it tells the lender how much of its own money is at risk and how much equity cushion sits beneath the loan. This calculator works out your LTV, the equity or deposit you hold, and which side of the Central Bank of Ireland limits you fall on.

The Central Bank limits in plain terms

Ireland caps how much you can borrow relative to a property’s value. First-time buyers and second-time or subsequent buyers can generally borrow up to 90 percent LTV, which means a deposit of at least 10 percent. Buy-to-let investors face a tighter limit of around 70 percent, so a 30 percent deposit. These ceilings sit alongside a separate loan-to-income rule, which caps most borrowing at four times gross income for first-time buyers and three and a half times for others. Both tests must be passed, and the binding one is whichever lets you borrow less.

A lower LTV is not just about clearing the limit. Lenders price risk in tiers, so dropping below thresholds such as 80 or 60 percent can unlock a cheaper fixed rate. The gap between an 90 percent and an 60 percent rate, compounded over a long mortgage, is real money. Building equity, whether by saving a bigger deposit or as your home rises in value, is one of the quietest ways to cut your interest cost.

A 95 percent case that breaches the cap

Suppose you find a €400,000 home but have only €20,000 saved, so you need a €380,000 mortgage. The LTV is €380,000 divided by €400,000, which is 95 percent, and your equity is just €20,000. That sits above the 90 percent ceiling for buyers, so a standard application would be refused or require a larger deposit. You would need to find another €20,000 to reach the 90 percent limit, lifting your deposit to €40,000.

At 95 percent this buyer is over the line. Save a deposit of 10 percent, €40,000, and the LTV drops to 90 percent, just inside the cap. Reach €80,000, a 20 percent deposit, and the LTV falls to 80 percent, which is where many of the better rates begin.

Exemptions and a word on valuations

Lenders are allowed to grant a limited number of exemptions above the standard LTV and income limits each year, but these are scarce, discretionary, and usually reserved for strong applicants. Do not build your plan around getting one. A practical tip: the value used is the lower of the purchase price and the lender’s own valuation. If a surveyor values the home below the agreed price, your LTV rises against the lower figure and you may have to top up the deposit. Always leave a buffer rather than budgeting to the last euro of the cap.

Does a bigger deposit always get a better rate?

Up to a point. Rates improve as you cross LTV bands, commonly at 90, 80 and 60 percent, but within a band an extra few thousand euro of deposit will not change your rate. Aim to land just under a threshold rather than slightly over it, where the deposit works hardest.

How does LTV change after I have owned the home for a while?

It falls two ways. Your repayments reduce the loan, and if the property appreciates the value rises, so the ratio improves on both sides. That lower LTV is exactly what lets you switch to a cheaper rate later, which is why reviewing your mortgage every few years can pay off.