Dictionary of Construction Terminology

Loan to value ratio

Search for glossary terms (regular expression allowed)
Begin with Contains Exact term
All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Term Definition
Loan to value ratio
- The ratio of the loan amount to the property valuation and expressed as a percentage. E.g. if a borrower is seeking a loan of $200,000 on a property worth $400,000 it has a 50% loan to value rate. If the loan were $300,000, the LTV would be 75%. The higher the loan to value, the greater the lender's perceived risk. Loans above normal lending LTV ratios may require additional security.