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Loan To Value

30 Sep

What is loan to value?

When purchasing your first home you will need to consider your loan to value (LTV).  The loan to value of your mortgage is a simple ratio calculation.  You can find your LTV by taking your mortgage amount and divide it by the purchase price of your home. LTV = Mortgage/Purchase Price.  The higher loan to value, the higher the CMHC premium.  If the LTV is 80% or less, you avoid the CMHC premium.

 
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Posted by on September 30, 2011 in Uncategorized

 

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