What is the LTV Ratio?

The loan to value ratio is the percentage of the home’s purchase price represented by the mortgage amount. For example, an LTV of 100 indicates that the mortgage was 100% of the purchase price and an LTV of 80 indicates that the mortgage was 80% of the purchase price. Note that the LTV is calculated separately for each individual mortgage rather than the aggregate of all mortgages against a property.


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