Glossary
LTV (loan-to-value)
The loan amount as a percentage of the property's value; it sets how much cash you must put down.
LTV is the size of your loan divided by the value of the property, expressed as a percentage. An 80 percent LTV means you borrow 80 and put 20 down. In Japan, owner-occupiers with permanent residency and strong income can sometimes reach 90 percent or even full financing, while foreign and non-resident investor buyers are usually capped far lower, often around 50 to 70 percent, meaning a much bigger cash deposit. Higher leverage lifts your cash-on-cash return when the property performs but magnifies the loss if it does not, and lenders base the ratio on their own appraisal, which can come in below the price you agreed to pay.