Calculate home-loan LTV ratio in Pakistan
Loan-to-value ratio compares a home loan with the property value accepted by the lender. Divide the loan by the accepted value and multiply by 100. A Rs 60 lakh loan against a Rs 75 lakh property has an 80% LTV.
This Pakistan LTV calculator shows the main home-loan ratio, combined secured exposure, sanctioned overdraft exposure, home equity, target-LTV paydown and potential borrowing room.
LTV, combined LTV and sanctioned exposure
Main home-loan LTV uses only the primary loan. Combined LTV adds other loans secured on the property and the amount drawn on a secured overdraft. The sanctioned-exposure ratio uses the full overdraft limit because undrawn secured credit may affect an institution's assessment of further borrowing.
Home equity is the accepted property value minus outstanding secured balances. It is not automatically available to borrow: the institution also checks income, obligations, credit history, title, property and loan purpose.
Housing-finance LTV
SBP housing-finance regulations set prudential requirements for LTV and lender assessment. Use the current rules and institution policy rather than assuming one universal percentage.
Debt-burden assessment
Total monthly housing and other consumer-finance payments are relevant to debt-burden assessment. LTV alone does not determine eligibility.
Low-cost housing
Special or low-cost housing programmes can have separate property-value, finance-amount and LTV conditions. Confirm that a programme is currently available.
Top-up or property loan
A top-up or loan against property can have different LTV, pricing, tenure and documentation from a purchase home loan. Use a custom target matching the product.
Why lender valuation changes the LTV
The bank or housing finance company may use a technical valuation and eligible property cost rather than the number you expect. If the accepted value is lower, LTV rises. Use the sensitivity table to model a 10% or 20% valuation difference.
SBP guidance generally excludes stamp duty, registration and documentation charges from the property cost used for housing-loan LTV, subject to limited exceptions and the rules applicable to the institution. These costs may therefore require additional cash.
Pakistan housing-loan LTV guidance
SBP prudential rules use loan amount and LTV bands when assigning treatment to individual housing loans. Those rules differ across regulated-entity categories and can change; lenders may also use stricter credit policy. Review the current SBP Handbook of Regulations at a Glance and the institution's written criteria.
The calculator uses the current proposal amount to provide a planning-band indicator. It does not determine regulatory classification, risk weight, sanction amount or borrower eligibility.
Using LTV for down payments, transfers and usable equity
For a purchase, down-payment percentage and LTV broadly add to 100% when the accepted value equals the price and no costs are financed. For an existing owner, usable equity to a chosen target equals the target percentage of accepted value minus current secured debt. For a balance transfer, include any approved top-up and costs added to the loan.
Use the Pakistan down payment calculator for purchase cash requirements and the Pakistan home equity calculator for repayment and long-term equity scenarios.
Pakistan LTV questions
How is home-loan LTV calculated?
Divide the home loan or combined secured debt by the lender-accepted property value and multiply by 100.
Is 80% LTV always allowed?
No. The applicable band depends on loan amount, institution, product and current rules, and lender policy may be stricter.
What is combined LTV?
Combined LTV includes all outstanding debts secured against the same property rather than only the main home loan.
Why include an unused overdraft limit?
The sanctioned limit represents potential secured exposure and may reduce the room considered available for further borrowing.
Are stamp duty and registration included in LTV?
They are generally excluded from eligible property cost for LTV under SBP housing guidance, subject to limited exceptions and institution-specific rules.
Does the bank use my estimated value?
The lender determines which property value it accepts. A lower valuation increases LTV and reduces equity and borrowing room.