Ratio of the mortgage to the market value or purchase price of a property expressed as a percentage.
With a purchase price of CHF 1,000,000 and a mortgage of
CHF 700,000, the loan-to-value ratio is 70%.
Your down payment should amount to at least 20% of the purchase price. The loan-to-value ratio should therefore be a maximum of 80%.
Depending on the type of property and its market value, lower loan-to-value ratios and higher down payment requirements may apply (e.g. for holiday homes and luxury properties).