• The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. You may see this expressed as an 80% loan, or 80% LTV.

A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.

loan to value ratio, LTV ratio, loan to value


Alternate Spellings
loan to value ratio, loan-to-value ratio, loan to value

Related Terms and Acronyms

  • Cash Back Mortgage Definition, Important,
    • A mortgage that provides the borrower a lump sum cash payment.
  • Combined Loan-to-Value (CLTV) Acronym, Very Important,
    • The connection between the unpaid principal balances of all the mortgages on a property (first and second usually) and the property's appraised value (or sales price, if it is lower).
    A term used by mortgage lenders and mortgage underwriters.
  • Conventional Mortgage Definition, Important,
    • A mortgage that is not insured or guaranteed by CMHC or GE Capital.
  • Current Loan-to-Value Ratio (CLTVR)Acronym,
    • Demand Loan Definition,
      • A loan that must be repaid in full, on demand.
    • High Combined Loan to Value (HCLTV)Acronym,
      • High-ratio Mortgage Definition, Important,
        • A mortgage in which a borrower places a down payment of less than 20% of the purchase price.
      • Lending Value Definition,
        • The property value for mortgage purposes. Usually the lesser of appraised value or sale price.
      • Loan to Value Ratio (LVR)Acronym, Important,
        • Low-down Mortgages Definition, Important,
          • Mortgages with a low down payment, usually less than 10 percent.
        • Low-down-payment Loan Definition,
          • A mortgage where the borrower puts down a small amount and borrows a high percentage of the purchase price.
        • LPQ Amount Definition,
          • A term used by CanEquity which is short for Loan, Purchase or Qualification amount.
        • Maximum Financing Definition,
          • A loan given for a property where the buyer puts down the lowest allowable down payment possible.
        • Mortgage (mtg) Abbreviation, Important,
          • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
        • Mortgage Application Definition, Very Important,
          • A document in which a prospective borrower details his or her financial situation to qualify for a loan.
        • Mortgage Disability Insurance Definition, Important,
          • Insurance that covers mortgage payments if a policyholder becomes disabled.
        • Principal Definition,
          • The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
        • Purchase Price Definition,
          • The total selling price of the home, including the cash down payment and the principal on the loan.
        • Ratio Definition,
          • Comparison of two figures used to evaluate business performance, such as debt/equity ratio and return on investment.
        • Total Loan to Value (TLTV)Acronym,
          • Zero Down Mortgage Definition,
            • A mortgage product that allows the borrower to financing 100% of their property.
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