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.