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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Feeling hesitant about entering the housing market today due to political or economic uncertainty is understandable. The landscape can seem unpredictable—interest rates shift, housing supply fluctuates, tariff news hits the headlines and policies change. As a mortgage broker, we see this uncertainty every day. But here’s the truth: while there is much beyond your control, mastering the factors that you can control is what will make the biggest difference in your journey to homeownership.
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