Loan-To-Value Ratio (LTV)
The LTV is one factor lenders use in evaluating the risk of a mortgage. The ratio, expressed as a percentage, is calculated by taking the amount of the mortgage loan and dividing it by the value of the property. In Canada, if the LTV is greater than 80%, the mortgage usually needs to be insured against default.
About The Author
Don Scott
Don Scott is the founder of a challenger mortgage brokerage that is focused on improving access to mortgages. We can eliminate traditional biases and market restrictions through the use of technology to deliver a mortgage experience focused on the customer. Frankly, getting a mortgage doesn't have to be stressful.
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