You may have heard the term Loan to Value (LTV)when applying for a mortgage, but do you really know what it means and how it can effect your loan?
Loan to value is the amount of money that you owe on your property, divided by the amount that your home is worth.
The reason that LTV can effect you, is because banks and lenders must look at the risk value when giving you a loan. Each institution will have a different number that they are comfortable with going up to. Private lenders will generally give you a higher loan to value, giving you more money out of your home.
If you are curious about the LTV of your home, and are looking to access some of the equity tied up in your home, speak to Tembo Financial. We are able to give you an estimate of how much money you will qualify for! Tembo Financial lends all over Ontario, including: North York, Vaughn, Barrie, Cambridge, and more.