France · EUR

Understand Your Borrowing Relative to Your Property Value

Calculate mortgage LTV, combined secured exposure and home equity, then test proposed borrowing against an editable target.

Current property and secured debt

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Use the relevant valuation or a realistic estimate
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€
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Used for the authorized-exposure ratio

Proposed borrowing scenario

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Editable planning target—not an approval limit
The proposal is compared with an editable 80% LTV target. Low-equity financing may apply above 80%, and approval criteria may be lower.

Property-value sensitivity

How proposed combined LTV changes if the lender-accepted value differs

Value changeProperty valueProposed secured debtCombined LTVHome equityEquity percentage

Planning estimate only—not an appraisal, mortgage approval or Low-equity financing decision. A lender determines the accepted property value and applies borrower, serviceability, property, purpose, product and credit requirements.

Measure how much of the home is debt‑financed

Loan‑to‑value (LTV) divides the loan by the property value and multiplies the result by one hundred. A €240,000 mortgage on a €300,000 home has an 80% LTV. This primary‑loan measure may be incomplete when the same property also secures other debts.

Drawn balances and authorised limits

Combined LTV includes other secured loans and the drawn balance of a credit line. Authorised exposure uses the full credit‑line limit. Borrowing room below your target uses that exposure, while equity deducts drawn balances only. An unused limit can therefore reduce borrowing room without reducing displayed equity.

Enter the balances after the transaction

Proposed‑loan fields expect total balances after the transaction, not just the additional borrowing. The drawn credit‑line balance is added separately. A valuation of €280,000 instead of €300,000 moves the same €240,000 loan from 80% to about 85.7%, without any new debt.

LTV does not establish approval

The 80% target is a comparison marker rather than a universal French limit. A lender also considers income, repayments, security and the property itself. Financing LTV is different from an insurance coverage percentage, which describes the portion insured for a borrower.

Frequently asked questions

How is LTV calculated?

Divide the loan by property value and multiply by one hundred.

Should I enter only the additional loan?

No. Enter total proposed balances after the transaction; the drawn credit-line balance is added separately.

Why count an unused credit limit?

The model uses authorised exposure for new borrowing room but only drawn balances for equity.

Does an 80% target guarantee financing?

No. It is an editable comparison point without a full lender assessment.

Is insurance coverage the same ratio?

No. It is the share of a loan insured for a borrower, rather than debt divided by property value.