Loan-to-Value (LTV) Calculator
The loan-to-value ratio is the mortgage as a share of what the home is worth. It decides whether you need mortgage insurance and what it costs, which rates you get, and how much more you can borrow against the home later.
Minimum $50,000 on this price
Loan-to-value
90.0%
A $675,000 mortgage on a $750,000 home.
The premium is added to the mortgage, not paid up front. Insured mortgages get the lower, insured rates (mortgage insurance calculator).
The LTV Limits in Canada
On a purchase, the ratio follows from the minimum down payment: 5% of the first $500,000 and 10% of the rest, so a $750,000 home can be bought with a mortgage of 93.3% of its price. Above 80% the mortgage must be insured, and a home of $1,500,000 or more cannot be, so it needs 20% down. For a home you already own, the lender looks at the appraised value: a refinance can take the mortgage back up to 80% of it, and a home equity line of credit can revolve up to 65%, within the same 80% once the mortgage is counted.
Mortgage | Highest LTV | Why |
|---|---|---|
| Buying, under $500,000 | 95% | 5% minimum down payment |
| Buying, $500,000 to $1.5 million | 95% of the first $500,000 and 90% of the rest | 10% down on the part over $500,000 |
| Buying, $1,500,000 or more | 80% | Cannot be insured |
| Refinancing | 80% | Federal rule for uninsured mortgages |
| Home equity line of credit | 65% revolving, 80% with the mortgage | OSFI guideline for revolving credit |
| Switching lenders without insurance | 80% | An uninsured mortgage |
Mortgage Insurance by LTV
The premium is a share of the mortgage, set by the ratio, and is added to the mortgage rather than paid at closing. The premium tiers are the reason buyers aim for 10% or 15% down even when they cannot reach 20%: each tier costs less. Our mortgage insurance calculator works the premium out on any price and down payment.
Loan-to-value | Premium, 25-year amortization | Premium, 30-year amortization | On a $500,000 mortgage |
|---|---|---|---|
| 80% or less | No insurance | No insurance | $0 |
| 80.01% to 85% | 2.80% of the mortgage | 3.00% of the mortgage | $14,000 |
| 85.01% to 90% | 3.10% of the mortgage | 3.30% of the mortgage | $15,500 |
| 90.01% to 95% | 4.00% of the mortgage | 4.20% of the mortgage | $20,000 |
Why the Ratio Matters After You Buy
An insured mortgage carries a lower rate than an uninsured one, because the lender's risk is covered: our mortgage rates page shows the two side by side every month. An insured mortgage stays insured when it moves to another lender at renewal, so a buyer who started above 80% keeps those rates. A mortgage that started at 80% or below is uninsured, and a switch at renewal needs the new lender to accept it at the current value, which is the ratio the calculator gives in the second mode. As the balance falls and the value rises, the ratio drops with it, and so does the risk of owing more than the home is worth if prices fall.
Today's Mortgage Rates from Lenders
This calculator works with whatever rate you enter. Compare it with the rates lenders are offering right now, fixed and variable, by term. Change the price, down payment or location to match your purchase.
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