Loan to value (LTV) ratio

Loans are granted in return for a mortgage on residential property owned by the applicant/borrower. Any type of changes to the mortgaging require the approval of the pension fund.

Up to 70% LTV

If a person other than a spouse, i.e. who is married to or in a registered partnership with the borrower, is the borrower's co-owner of the property a mortgage cannot be granted for that property.

The outstanding balance on any existing mortgages, plus the pension fund loan applied for, may not exceed 70% of the value of the collateral as specified in this section when the loan is granted. If the mortgage for a new loan or transfer of collateral for a loan from the fund exceeds 65% of the value of the collateral, the requirement is generally set that any third-party mortgages (other than those of the Pension Fund of Commerce, LV) may not amount to more than 20% of the assessed value of the collateral.

The mortgage percentage shall be calculated based on the selling price in the purchase contract when a loan is granted in connection with purchase of real estate. In other cases the existing official assessed value shall serve as the basis. An ad hoc assessment cannot serve as a basis.