Mortgage lending value: why the bank values your property lower – explained

For financing purposes, banks do not calculate with the market value but usually with the more cautious mortgage lending value (§ 16(2) PfandBG, § 3 BelWertV). In about four minutes, this video explains the difference, how the mortgage lending value is determined and what it means for your financing.

What you will learn in the video

• Difference: the market value is the price on the valuation date; the mortgage lending value is the value likely to be achievable throughout the entire term of the loan – at most the market value.
• Determination: usually the income approach, the cost approach as a check, cautious minimum figures for the interest rate and operating costs (§§ 4, 11, 12 BelWertV).
• Worked example: 800,000 € market value, 680,000 € mortgage lending value, 60 % of it, 408,000 €, as the limit for Pfandbriefe (covered bonds) (§ 14 PfandBG).
• Financing: the mortgage lending value can affect the interest rate and the equity required.
• Appraisal: sustainable rent, cautious rates, independent valuer (§§ 7, 10, 12 BelWertV); the bank may not base its valuation on an appraisal commissioned by the borrower (§ 5(2) BelWertV).

Legal basis and sources (as of 9 October 2026)

• § 14 PfandBG – lending limit
• § 16 PfandBG – determination of the mortgage lending value
• § 3 BelWertV – principle of determining the mortgage lending value
• § 4 BelWertV – methods
• Section 7 BelWertV – independence of the valuer
• Section 194 BauGB – market value

This video is an information and promotional video of the real estate appraisal office STRECKEL for its own services. It provides general information, is not financing, legal or tax advice and does not replace an appraisal of your property. Examples are simplified.