Loan-to-value ratio (LTV)

What is the loan-to-value ratio (LTV)?

The loan-to-value ratio (LTV), in Slovak ukazovateľ LTV, is the loan amount divided by the value of the property that secures it. A loan of 160,000 euros on a house valued at 200,000 euros has an LTV of 80 percent. The remaining 40,000 euros must come from the borrower’s own savings or another source. LTV is one of the core tests a bank applies to a mortgage loan, and the central bank uses it as a lending limit across the whole market. The NBS measure calls it ukazovateľ zabezpečenia úveru na bývanie. It adds earlier housing loans on the same property and earlier liens of the same lender to the debt (§ 7 ods. 4 and 5).

The table is illustrative arithmetic. It shows what each LTV means in money, not what a bank will approve.

What are the NBS limits on LTV in Slovakia?

The National Bank of Slovakia (NBS) sets the limits in its measure 10/2016 on the assessment of a consumer’s ability to repay a housing loan (notice 373/2016 Z. z.). The NBS issues the measure under § 8 ods. 16 of Act 90/2016 Z. z. The text that applies until 31 December 2026 is the measure as amended by measure 5/2022. The NBS instrument page states the base rule in one sentence: the loan amount may not exceed 80 percent of the value of the property.

The measure adds an exemption. The ratio may never exceed 90 percent. Loans above 80 percent may make up at most 22 percent of new mortgage volume in the previous quarter and 20 percent in the previous half-year (§ 7 ods. 1 and 2). Refinancing that adds no more than 2,000 euros or 5 percent of the old balance, whichever is lower, falls outside the limit (§ 7 ods. 3). The NBS names the Housing Loan Act and the Consumer Credit Act as the statutory framework. The NBS pages carry no effective dates, so the table below follows the measure in force on 13 November 2026.

Read the table as a set of ceilings. A loan has to stay within all of them. The exemption shares are the only room the NBS allows above the base figures. Those shares apply to the bank’s new lending as a whole, so an individual applicant cannot count on them. A borrower who sits close to one ceiling should expect the bank to test the others as well.

How do the DTI and DSTI limits work alongside LTV?

LTV tests the property, while DTI and DSTI test the borrower. The DTI limit compares all of a household’s loans with its annual income. Debt includes the new loan, existing loans and 20 percent of undrawn credit card and overdraft limits (§ 8a ods. 7). The base is eight times income. For a borrower aged 41 or more whose loan runs past age 65, the multiple falls by 0.25 for each year of age above 40. It never falls below 3 (§ 8a ods. 2). Young borrowers up to 35 may reach nine times income for a limited share of loans.

The DSTI limit compares loan repayments with household income. The measure keeps back the minimum subsistence amount plus 40 percent of the remaining income. Repayments may use the other 60 percent (§ 2 ods. 1, 2 and 5). The NBS instrument page adds that the bank calculates repayments at a stressed interest rate. Up to 5 percent of new loans may fall between 60 and 70 percent, and consumer credit has a separate exemption. A loan has to pass the LTV, DTI and DSTI tests. A property that clears the 80 percent base can still be refused on income.

What changes from 1 January 2027?

NBS measure 3/2026 amends measure 10/2016 and takes effect on 1 January 2027 (notice 251/2026 Z. z.). It replaces the single base limit by limits for borrower groups.

• A first home gets a 90 percent limit. The borrower must be at most 35 years old, own no residential property and buy or build a home (§ 7 ods. 4).
• A third and further residential property gets a 70 percent limit (§ 7 ods. 1 písm. b).
• Other loans keep the 80 percent limit. A limited share may still reach 90 percent.

A transition applies. From 1 January to 30 June 2027 the limit is 90 percent for a first home and 80 percent for other loans. The 70 percent limit starts on 1 July 2027 (§ 9d). Ask the bank which limit it applies on the day you sign.

How does LTV apply to a house you are still building?

Construction finance is normally released in stages, and the bank values the property at each stage. For a property under construction, the NBS measure takes the lower of two values. One is the bank’s internal estimate of the general value after completion. The other is the price in the construction financing contract, if one exists (§ 7 ods. 8). The measure does not say how to test the ratio at each stage of a drawdown. Ask the bank how it values the property and at which point it tests the limit. The bank’s valuation is documented in a property valuation report, and the release of funds is described in staged loan drawdown.

The building procedure is a separate matter. The Building Act (25/2025 Z. z.) governs how the building is permitted and inspected. It does not set the loan limits, and a loan limit does not change the building route.

Before you sign, ask the bank for three figures: the property value it used, the date of that valuation, and the LTV it calculated from them. Compare the value with the agreed price and the LTV with the limit that applies to you. Those three numbers show which limit the bank tested and how much room the loan has left.

What are the common misconceptions about LTV?

• “80 percent is an absolute cap.” It is the base limit. A limited share of new loans may go above it, up to 90 percent.
• “LTV is the only test.” DTI and DSTI apply as well, so a loan can pass the LTV test and still fail on income.
• “The loan is measured against the price.” For a purchase, the NBS measure takes the lowest of the purchase price, the expert’s price and the bank’s internal valuation (§ 7 ods. 7). A valuation below the agreed price reduces the loan the LTV allows.
• “The limits are permanent.” The base limits change on 1 January 2027, so confirm the limit before you plan a purchase.