Loan to Value Ratio
Loan To value relates to the ratio between the loan taken, and the value of the house the loan is taken for. The regulations in Israel limit the ratio banks can give, based on the borrowers existing properties:
● Single apartment - If the borrowers have no other properties the maximum LTV is 75%.
● Replacement apartment - If at the the of purchase the borrowers own a property, that they intend to sell within two years the maximum LTV is 70%.
● Additional apartment - all other cases - either the borrowers own two or more apartments, or they own one apartment that they are not selling. In this case the maximum LTV is 50%.