In Polish: LTV
This is the word you will see in bank documents.
Definition
LTV (loan to value) is the ratio of the loan amount to the value of the property securing it, in per cent. A PLN 400,000 loan on a flat worth PLN 500,000 is an LTV of 80%. Recommendation S of the Polish Financial Supervision Authority (KNF) lets banks lend up to 80% of the value, and up to 90% when the part above 80% is additionally secured.
What it means for you
LTV decides how much down payment you need: at an LTV of 80% it is 20% of the value. The lower the LTV, the lower the margin usually is, because the bank takes less risk. Above 80% LTV the bank adds low down payment insurance or a higher margin until the balance falls to 80% of the value.
Full entry in Polish, with a worked example and sources
Frequently asked questions
What is the best LTV?
In terms of price, the lower the better. The most common threshold is 80%, i.e. a 20% down payment, and some banks give a better margin at 70% LTV or lower.
Is LTV based on the price or the valuation?
The bank relies on the surveyor's valuation and often takes the lower of the two: price or valuation. If the valuation comes in below the price, the LTV rises and the bank may ask for a larger down payment.
Can I have an LTV of 100%?
Not with a standard loan. The exception is the Family Housing Loan (Rodzinny Kredyt Mieszkaniowy), in which a BGK guarantee replaces the missing down payment, up to PLN 100,000.
Related terms
Definitions are simplified and reflect Polish law and bank practice as of October 2026. Where every word matters, the Act and your loan agreement decide. Figures in examples are indicative and are not a bank offer. The Polish version of each entry has worked examples and sources.
Other terms in “Creditworthiness and down payment”