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LTV key determinant for home loans for millennial buyers: NoBroker Survey

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Loan-to-value (LTV) is the biggest determinant for millennial homebuyers while deciding a lender for buying their first home, according to a survey by real estate platform

LTV refers to the ratio of loan amount and value of property. The higher the LTV, the higher is the percentage of loan amount. This means lower percentage of down-payment is required to shelled out by the buyer.

As more and more companies have become habituated to employees working from home and many of them have adopted the hybrid model, millennial are closer than ever to realising the importance of owning a home, said the survey. Millennial now make up 63 per cent of the homebuyers, up from 49 pc a year ago.

Affordable home loans due to historic low interest rates and digital adoption in the loan application processing by the lender banks are catalysing the trend along with attractive builder discounts and Government initiatives, said the survey.

As per the survey, loan-to-value and foreclosure charges are the most critical factors for deciding the lender bank for home loans. A higher LTV reduces the down payment amount and lowers (and in some cases nullifies) the foreclosure charges allowing the homebuyer the freedom to repay and finish off the loans earlier than the loan tenure.


Home-loan tenure of 10-15 years is the most preferred by 31 per cent respondents, followed by 24 pc preferring tenure of more than 10 years.

About 65 pc of the 1,200 millennial surveyed were in IT services while the rest were either self-employed or in Government services.

Amit Agarwal, CEO and Co-Founder of NoBrokerAmit Agarwal, CEO and Co-Founder of, said, “The average age of buying a property has reduced and more and more millennial are buying their first homes. They prefer an LTV on the higher side as it enhances the overall ticket size of the purchase.  This is the reason that higher LTV has emerged as the most important factor for millennials in terms of choosing the home loan providers, apart from interest rate.”