21/03/2026
How Banks Decide Your Loan
Banks don't lend based on trust.
They lend based on numbers.
Here are the numbers that matter.
Whether you're in Lagos, London, Dubai, or São Paulo — banks use a similar framework to decide if you qualify for a property loan.
Here's what they're looking at:
1. Loan-to-Value (LTV) Ratio
How much you're borrowing vs the property's value.
Lower LTV = less risk for the bank = better terms for you.
2. Debt-to-Income Ratio
What percentage of your monthly income goes to debt payments.
Most banks want this below 40–43%.
3. Credit History
Your track record of paying back what you owe.
In markets without formal credit bureaus, banks use bank statements and asset proof instead.
4. Income Stability
Employed, self-employed, or business owner — each is assessed differently.
5. Property Valuation
The bank will value the property independently. Their number not yours determines the loan.
Walk into any lender globally knowing these five numbers and you'll negotiate from a position of strength.
