Each bank has its own approach to determining the loan-to-value ratio. Some banks use the purchase price requested by the seller as the valuation. In this case, the calculation of the loan-to-value ratio is simple. If you set 10% equity capital in relation to the purchase price of the real estate, the loan-to-value ratio is 90%. However, many others first deduct 10% security margin and then set the desired loan amount in relation to this value. In such a case, an equity investment of 10% would still mean that the bank assumes 100% financing.