Loan-to-Value (LTV) Calculator (VND)
Loan-to-value (LTV) is the ratio of your loan amount to the value of the property you are buying, expressed as a percentage. It is the first number a lender looks at on a home loan, because it measures how much skin the bank has in the deal versus how much you do. A high LTV means you are borrowing a large share of the property's value, leaving a thin equity cushion — riskier for the lender — so banks impose an LTV cap to contain that risk. In Vietnam, lenders typically advance up to around 70% of the appraised value on a standard residential mortgage; you fund the rest in cash as your down payment.
Here is the mechanic in numbers. Borrow 3.900.000.000 VND against a 5.000.000.000 VND apartment and your LTV is 78.0% — above the common 70% line. Your equity in the property is 1.100.000.000 VND, but to satisfy a 70% cap the bank will only lend 3.500.000.000 VND, which means it expects a down payment of 1.500.000.000 VND. The 400.000.000 VND gap between what you wanted to borrow and what the cap allows is exactly the extra 400.000.000 VND of cash you would need to find to bring the deal in line.
The calculator above takes your loan amount, property value and a target LTV, then returns the current LTV, your equity and equity percentage, the maximum loan allowed at the target, and the minimum down payment that implies. One caveat runs through all the examples: the 70% cap is an illustrative, editable assumption, not a quote. Real caps depend on the bank, the property type and your credit profile, and foreign-buyer eligibility for VND mortgages is restricted — confirm both the lending terms and your eligibility with the bank before you plan around any number here.
How the calculator works out your LTV
The five core calculations
| Metric | Formula |
|---|---|
| LTV ratio | Loan amount ÷ Property value × 100 |
| Equity (amount) | Property value − Loan amount |
| Equity percentage | 100% − LTV |
| Maximum loan at cap | Property value × Target LTV |
| Minimum down payment | Property value − Maximum loan |
With the worked-example inputs — a 3.900.000.000 VND loan on a 5.000.000.000 VND property — LTV = 3.900.000.000 ÷ 5.000.000.000 × 100 = 78.0%. Your equity is 5.000.000.000 − 3.900.000.000 = 1.100.000.000 VND. Applying a 70% cap, the maximum loan is 5.000.000.000 × 70% = 3.500.000.000 VND, so the minimum down payment is 5.000.000.000 − 3.500.000.000 = 1.500.000.000 VND.
Whose "value" is it?
Banks compute LTV against the appraised value, not the asking price. The appraisal is usually conservative relative to a hot market price, so your real on-paper LTV can come out higher than you expect if you plug in the purchase price. Enter the figure the bank is likely to use so the result reflects the loan you can actually get approved.
Why the LTV cap matters
- Higher LTV → bigger loan, smaller down payment: less cash up front, but a larger principal, more interest over the life of the loan, and a higher chance of negative equity (owing more than the home is worth) if prices fall.
- Lower LTV → smaller loan, bigger down payment: more cash required, but lighter repayments, easier approval and often a better interest rate.
What the model leaves out
This tool only relates loan, value and equity. It does not test whether you can afford the monthly repayment (the debt-to-income ratio), nor does it account for the interest rate, appraisal and notary fees, or loan insurance. A clean LTV can still be declined if your income cannot carry the instalments. Pair it with FiMo's down-payment and home-affordability calculators for the full picture.
Worked example: a 5.000.000.000 VND apartment, you want a 3.900.000.000 VND loan
Illustrative assumptions: the appraised value equals the 5.000.000.000 VND purchase price, the bank's LTV cap is 70% (editable), excluding interest and fees.
| Metric | Value |
|---|---|
| Property value | 5.000.000.000 |
| Loan amount | 3.900.000.000 |
| LTV ratio | 78.0% |
| Your equity | 1.100.000.000 |
| Maximum loan at 70% | 3.500.000.000 |
| Minimum down payment | 1.500.000.000 |
Three takeaways.
- At 78.0%, you are over the 70% line. You asked to borrow 3.900.000.000 VND, but a 70% cap allows only 3.500.000.000 VND — a shortfall of 400.000.000 VND that the bank will not lend against this property.
- Closing the gap costs cash, not paperwork. To get to 70% LTV you would need 1.500.000.000 VND down. You have 1.100.000.000 VND of intended equity, so you must find an extra 400.000.000 VND — or buy a cheaper property, or find a lender with a higher cap.
- Down payment scales with value, not loan. Because the cap is a percentage of value, the minimum down payment (1.500.000.000 VND here) is fixed by the property price and the cap — lowering your requested loan below 3.500.000.000 VND only reduces your borrowing, not the minimum cash a 70% cap demands at the top.
Adjust the loan amount to watch the LTV move, or set a target LTV that matches your bank. Combine this with FiMo's down-payment and home-affordability tools to check that your income can actually service the loan.
Frequently asked questions
What is loan-to-value (LTV)?
Loan-to-value (LTV) is your loan amount divided by the property's value, shown as a percentage: LTV = loan ÷ value × 100. It is the lender's primary risk gauge on a mortgage — a higher LTV means you are borrowing a larger share of the property's value and leaving a thinner equity cushion. Example: a 3.900.000.000 VND loan on a 5.000.000.000 VND property is an 78.0% LTV, leaving you 1.100.000.000 VND of equity in the home.
What is the maximum LTV banks in Vietnam allow?
For a standard residential mortgage, many Vietnamese banks lend up to around 70% of the appraised value, with the balance funded by your down payment. Treat that as an editable reference, not a fixed rule: the cap varies by bank, property type and credit profile, and can be lower for land plots or unfinished homes. On a 5.000.000.000 VND property a 70% cap means a maximum loan of 3.500.000.000 VND and a minimum down payment of 1.500.000.000 VND. Note too that foreigners face restrictions on VND mortgage eligibility — confirm with the bank.
How much down payment do I need for a target LTV?
The minimum down payment equals the property value minus the maximum loan at your target LTV: down = value − (value × target LTV). For a 5.000.000.000 VND property at a 70% cap, the maximum loan is 3.500.000.000 VND, so you need 1.500.000.000 VND down. In the worked example you intended to put down only 1.100.000.000 VND, which would push LTV to 78.0% — so you would have to find an extra 400.000.000 VND in cash to bring the deal to 70%.
Is a lower or higher LTV better?
A lower LTV is generally better for the borrower's risk: you owe less relative to the home's value, repayments are lighter, approval is easier and you often get a better interest rate because the lender is better protected. The trade-off is that a lower LTV demands more cash up front. A higher LTV needs less cash to start, but carries a larger principal, more total interest and a higher chance of negative equity if prices fall. Most buyers balance the down payment they can raise against the monthly repayment they can sustain.
Does LTV use the purchase price or the appraised value?
Banks calculate LTV against the appraised value, not the seller's asking price. Appraisals tend to be conservative and can come in below a hot market price, which means your real on-paper LTV may be higher than a purchase-price calculation suggests. Enter the figure the bank is likely to use so the tool reflects the loan you can actually be approved for, rather than an optimistic number that the appraisal then undercuts at the last minute.
What is the difference between LTV and DTI?
LTV compares the loan to the value of the property — it answers whether the collateral covers the loan. DTI (debt-to-income) compares your repayments to your income — it answers whether you can afford the monthly instalment. Lenders check both: a clean LTV such as 78.0%'s lower-cap equivalent can still be declined if your DTI is too high, meaning repayments swallow too much of your income. This tool only computes LTV; use FiMo's DTI and home-affordability calculators to test repayment capacity as well.