Loan To Value(LTV) - Korean Real Estate Calculator

Loan to Value (LTV) is an indicator of the ratio of loan to mortgage and is used primarily to calculate the loanable amount of mortgage loans.

The standard ratio of LTV in Korea varies by region and is 40% to 70%.

Lease Deposit : This means the deposit of the previous monthly rent contract transferred before the loan. It's the amount that needs to be reimbursed first, so it's deducted from the loanable amount.
First payment amount for small rental deposit (aka. minimum deposit): Even if the tenant transfers to the remaining room after the loan late, the amount prescribed by the law can be reimbursed as the top priority. The bank calculates the loanable amount by deducting the amount of reimbursement for the number of rooms just in case. In general, housing or shopping districts deduct small rental deposits based on the number of rooms separated, but apartments are not deducted (which may vary from financial company to financial company).

Calculation Result

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Loan To Value(LTV) = (Loan amount + Senior bond + Rental deposit, etc.) / Collateral value
Senior Bond = Balance of loans received as same collateral before this loan, etc.
Rental deposit, etc. = Rental deposit, Minimum Lease Deposit, etc.

Regional Maximum LTV

House Price	Division	Speculation Area and Overheating Area	Regulated Area	Other Areas
less than 900 million	Low-income consumers (homeless)	50%	60%	70%
	1 house (disposal conditions)	40%	50%	70%
	2 or more houses	impossible	impossible	60%
over 900 million	less than 900 million	40%	50%	Same as less than 900 million
over 900 million	over 900 million	20%	30%
over 1.5 billion	-	impossible	Same as over 900 million

Regional Minimum Lease Deposit

area		small rental deposit
Seoul		50 million won
Incheon	Ganghwa-gun, Ongjin-gun	20 million won
	Seo-gu Daegok-dong/Bulo-dong/Majeon-dong/Geumgok-dong/Oryu-dong/Wanggil-dong/Dangha-dong/ Wondang-dong/Incheon Free Economic Zone and Namdong National Industrial Complex	23 million won
	other areas	43 million won
Uijeongbu / Guri / Hanam / Goyang / Suwon / Seongnam / Anyang / Bucheon / Gwangmyeong / Gwacheon / Uiwang / Gunpo / Yongin / Hwaseong / Sejong / Gimpo		43 million won
Siheung	Banwol Special Area	20 million won
Siheung	other areas	43 million won
Namyangju	Hyeongyeong-dong / Pyeongnae-dong / Geumgok-dong / Ilpae-dong / Ipae-dong / Sampae-dong / Gaun- dong / Suseok-dong / Jieum-dong and Donong-dong	43 million won
Namyangju	other areas	20 million won
Gwangju/Daegu/Daejeon/ Busan/Ulsan	military area	20 million won
Gwangju/Daegu/Daejeon/ Busan/Ulsan	other areas	23 million won
Gyeonggi-do Ansan, Gwangju, Paju, Icheon, Pyeongtaek		23 million won
other areas		20 million won