Banking Tools

LTV, borrowing capacity, amortisation schedules, DSCR — CRR / EBA benchmarks

LTV Parameters

Property value

€

Loan amount

€

Loan-to-Value ratio (LTV)

80.0 %

Healthy

Down payment: 150.000 € (20.00 %)

LTV Thresholds — Luxembourg Regulations

LTV <= 80%Residential standard — 35% risk weight (CRR2 Art. 125)

LTV <= 90%First-time buyer primary residence — tolerated by CSSF with conditions

LTV > 90%State guarantee required (max 303,862 EUR)

Prudent Value — CRR Art. 229

The Prudent Value is not a fixed percentage of market value. It is the Mortgage Lending Value (MLV) determined by an independent appraiser under Article 229 of the CRR, excluding speculative elements and exceptional market conditions.

Method: The appraiser applies prudential haircuts to the market value to reflect long-term sustainability: cyclical haircut (margin vs. current conditions), marketing haircut (time/liquidity), specific haircut (risks inherent to the property). The result is typically 80-95% of market value, but this ratio is not regulatory — it depends on the property and context.

Legal basis: CRR Art. 4(1)(74) defines the MLV. CRR Art. 229 requires an assessment by a qualified independent expert. EBA GL/2020/06 specifies monitoring and revaluation requirements.

To calculate: Use the Mortgage Lending Value tab in the EVS valuation module — it applies CRR haircuts with justification.

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