Tag Archives: LTR

What is Loan-to-Value Ratio

Loan-to-value ratio is simply the comparison of the size of the loan taken to buy a property, with the value of the property. It is a risk assessment ratio for lenders. Also called the LTV ratio or LVR, it is one of the most significant indicators of the risk involved in a mortgage loan. This ratio is the first to be assessed by a lender before agreeing to clear a loan for a borrower. It is the calculated amount of the loan taken as a percentage of the total appraised property value.

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