Latest changes to the Mortgage Lending Policies of the 4 major banks

These are the latest changes to the Mortgage Lending Policies of the 4 major banks.

The loan-to-value (LTV) ratio is a mathematical calculation which expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property.

For instance, if a borrower wants R1,300,000 to purchase a house worth R1,500,000, the LTV ratio is R1,300,000/R1,500,000 or 87%.

Supplied by: Caroline de Wet - www.moneyweb.co.za