LTV
Published 5 November 2026, 23:09
LTV — loan-to-value (the share of the property's value covered by the loan)
The loan amount divided by the value of the mortgaged property, taking whichever is lower — the purchase price or the bank's valuation. Banco de Portugal limits as at 4 September 2026: no more than 90% of the value for your own permanent home and no more than 80% for anything else. That is where the deposit comes from: at least a tenth of the price, with taxes and transaction costs on top.
Where you come across it. A mortgage: how much of your own money you will have to put down.
It is calculated from the lower figure. If the bank values the flat at less than you are paying for it, the loan is based on the valuation and you make up the difference yourself — this is where deals fall through. This limit applies alongside others: the share of income going on repayments (DSTI), the loan term and repayment in equal instalments, with no capital or interest holidays.
Official website: clientebancario.bportugal.pt