Mortgage LTV explained: purchase, refinance and combined LTV

Loan-to-value is the mortgage amount divided by the property value. A $500,000 mortgage against a $625,000 property is 80% LTV. For a purchase, the difference is generally the down payment before closing costs. For a refinance, it represents existing equity before other secured debts are considered.

The value used by a lender may be the lower of purchase price or accepted appraisal, depending on the transaction and program. The directory therefore treats entered property value as an illustration, not a lender-approved valuation.

A second mortgage is normally evaluated using the total secured debt. Add the balances of the first and proposed second mortgages, then divide by property value. Comparing only the second-mortgage amount with the property value understates the combined LTV.

The comparison tool warns when the entered LTV exceeds a published ceiling. It cannot determine whether another lien, payout amount or lender-specific valuation changes that calculation.

A maximum LTV is a ceiling within published criteria, not a promise that every property, location or borrower qualifies at that level. Pricing may change at lower LTV bands, and some products require default insurance or impose different limits on rentals and rural properties.

Use the property and qualification wording beside the selected rate row. When a lender does not publish a geographic rule, do not infer city-level availability from an Ontario-wide record.

Credit, income documentation, debt service, property condition, mortgage purpose and exit strategy can still control the decision. The directory filters only the public fields it can evidence and leaves missing criteria visibly unresolved.