Calculate mortgage loan-to-value in Canada
Loan-to-value compares debt secured by a home with the property value accepted by a lender. It is commonly expressed as a percentage: divide the mortgage balance by the property value and multiply by 100. A $390,000 mortgage on a $650,000 property has a 60% LTV.
This calculator shows mortgage LTV, combined LTV, authorized HELOC exposure and home equity. It also compares a proposed borrowing scenario with Canadian 65%, 80% and high-ratio planning markers.
LTV, combined LTV and authorized HELOC exposure
Mortgage LTV uses the main mortgage balance. Combined LTV adds outstanding second mortgages and HELOC balances. The authorized-exposure ratio uses the full HELOC limit, because unused revolving credit may still affect how much further secured borrowing is available.
Home equity is the property value minus outstanding secured balances. It is an ownership estimate and is not the same as the amount a lender will permit you to borrow.
65% HELOC marker
OSFI expects federally regulated lenders to limit the non-amortizing revolving HELOC component to no more than 65% LTV.
80% uninsured marker
Total uninsured secured borrowing generally cannot exceed 80% LTV. Any portion above 65% in a combined plan should be amortizing and non-readvanceable.
Above 80% LTV
An eligible purchase mortgage above 80% LTV generally requires mortgage default insurance. Insurance is not available for every property or transaction.
95% maximum example
An eligible insured purchase can reach 95% LTV where the minimum down payment is 5%, but tiered down-payment rules reduce the maximum ratio for higher-priced homes.
Why LTV matters for Canadian mortgages
LTV can affect mortgage default insurance, product eligibility, pricing, refinancing and access to home equity. Lower LTV means more equity, but it does not guarantee approval or a particular interest rate. Lenders also assess income, debts, credit, the mortgage stress test, property type and loan purpose.
For current federal information, review the FCAC HELOC guide, OSFI secured-lending guidance and CMHC insurance guidance.
Property valuation and LTV changes
LTV falls when principal is repaid while property value remains stable. It rises when additional debt is secured or the accepted property value declines. Use the sensitivity table to see how the same proposed debt produces different ratios at several property values.
To examine borrowing room and payment scenarios, use the Canada home equity calculator. For purchase cash requirements, use the Canada down payment calculator.
Canada LTV questions
How do I calculate mortgage LTV?
Divide the mortgage balance by the accepted property value and multiply by 100.
What is combined LTV?
Combined LTV divides the total outstanding balances of mortgages and other secured credit by property value.
Why does the calculator use the full HELOC limit?
The authorized limit represents potential revolving exposure even when part of the line is unused, so it can affect room for more secured borrowing.
Can a Canadian mortgage exceed 80% LTV?
An eligible purchase mortgage may exceed 80% when mortgage default insurance is obtained. Refinances and other transactions have different restrictions.
Is 65% the maximum combined mortgage and HELOC?
No. It is the maximum expected revolving HELOC portion. Total secured borrowing may reach 80%, but lending above 65% should be amortizing and non-readvanceable.
Does a lender use market value or appraisal value?
The lender determines the acceptable value and may use an appraisal, automated valuation, purchase price or another approved method depending on the transaction.