Determinants of loan to value ratio of house-owners in Can Tho city

Abstract

The aim of this paper is to examine factors affecting loan to value ratio of house-owners in Can Tho city. Data from the survey at 228 households used to have loans for purchasing a house are employed. Tobit regression reveals that loan to value ratio of house-owners is positively related to the household’s total assets, the number of household’s members and household’s loan experience. In addition, the results also show that household’s income, informal credit and interest are negatively associated with the loan to value ratio. However, this study finds no evidence for the relation between term of loan and loan to value ratio of households in Can Tho city.