How Much Will the Bank Lend? Understanding LTV.
The Bank is Your Partner, Not Your Sugar Daddy. Banks rarely lend 100% of a property’s value. They manage risk using LTV (Loan-to-Value). The 80/20 Rule Standard LTV in the Philippines is 80%. Auction Advantage Because auction properties are often priced below market value, the LTV sometimes covers more of the purchase price than usual, […]
The Bank is Your Partner, Not Your Sugar Daddy.
Banks rarely lend 100% of a property’s value. They manage risk using LTV (Loan-to-Value).
The 80/20 Rule
Standard LTV in the Philippines is 80%.
- Appraised Value: 5.0 Million.
- Max Loan: 4.0 Million (80%).
- Your Equity: 1.0 Million (20%).
Auction Advantage
Because auction properties are often priced below market value, the LTV sometimes covers more of the purchase price than usual, reducing your cash out.
