Unlike market value, which prices a property on an effective date, the mortgage lending value reflects the achievable price for a property throughout the period of a loan.

This forward-looking valuation is vital for banks' risk assessment and risk control, and therefore also relevant when considering equity capital costs or refinancing.

Our calculation of mortgage lending value plays an important part in the overall planning of property financing. Particularly for issuers of mortgage bonds, the lending value is of great importance as it has a deciding effect on the security of the reserve value fund.