What is the Loan to Value Percentage (LTV)?
The Loan to Value Percentage, LTV for short, is the size of your desired loan in proportion to the value of the property you are buying, refinancing, or borrowing against.
The LTV percentage is obtained by dividing the loan amount by the value of the property. For example, if your property is worth $200,000 and you want to borrow $50,000, then your loan’s LTV is 25%.
The LTV is a key factor taken into consideration when your loan request is submitted. In our experience, the lower the LTV percentage is, the easier your loan is to fund and the better the rates and terms will be.