What is Loan to Value (LTV)?
The loan to value ratio is a measurement of how much of an asset or portfolio is owned in equity, as opposed to being financed by debt. It is also an assessment of lending risk. The more debt relative to the value of assets, the more susceptible they are to rising interest rates, and the greater the chance of default.
LTV ratio is calculated by dividing the amount borrowed (the mortgage amount) by the appraised value of the property, and is expressed as a percentage. The lower the LTV ratio, the greater the chance that the loan will be approved, and the lower the interest rate is likely to be. At Equiton, we look to find the optimal level of LTV when purchasing a property to lower risk and maximize returns.
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Whether you are a seasoned investor looking to diversify your portfolio or a first-time investor seeking to explore the potential of real estate, we have tailored solutions to meet your unique needs. Our investment offerings encompass a diverse range of property types, such as residential, commercial and development.
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