- January 2019 -

Terminology Tip: Loan to Value Ratio

Loan-to-value (LTV) is a term used by lenders to illustrate how much the homeowner owes on their mortgage compared to the value of the home. For example, if someone purchases a property for $100,000 and has a $20,000 down payment, their mortgage would be $80,000, or 80% of the value of the home — an LTV ratio of 80%. The loan's LTV is important for establishing your loan eligibility and mortgage rate for both initial loans and refinance transactions.


Monika Tse

Marketing Specialist


Market Connections Inc.

94 Scarsdale Road, Toronto, ON M3B 2R7

Phone: (416) 223-2250 x238


Email: monika@marketconnections.com

Website: www.realtyreport.org


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