Fiscalgrove
Calculators

Canada calculators

CA

Choose your market

Loan-to-Value (LTV) Calculator

Work out your loan-to-value percentage, your down payment or equity amount, and whether your mortgage is conventional (uninsured) or high-ratio (insured).

$
$

Implies a down payment or equity of $100,000.00.

Loan-to-value (LTV)80.0%
Down payment / equity20.0%
Down payment / equity amount$100,000.00

Up to 80% LTV (conventional)

Conventional (uninsured) mortgage — no default insurance required.

How this calculator works

Loan-to-value (LTV) is one of the most important numbers in Canadian mortgage lending. It's simply your mortgage (loan) amount expressed as a percentage of the property's value:

LTV = (loan amount ÷ property value) × 100

The complement of your LTV is your down payment percentage (on a purchase) orequity percentage (on a refinance) — the two always add up to 100%. 80% LTV is the single most important threshold in Canada: at or below it, your mortgage is "conventional" and needs no default insurance; above it, it's "high-ratio" and must be insured by CMHC, Sagen, or Canada Guaranty, up to a maximum of 95% LTV on an eligible home. This calculator shows your exact LTV, your down payment/equity figures, and the tier your result falls into.

Worked example

Say you're buying a property valued at $500,000 with a $400,000 mortgage. Your LTV is exactly 80% ($400,000 ÷ $500,000), meaning your down payment makes up the remaining 20%, or $100,000 — right at the conventional/high-ratio threshold, so no default insurance is required. By contrast, a $450,000 mortgage on the same $500,000 property gives a 90% LTV, with a $50,000 (10%) down payment — comfortably within insured-financing limits, but requiring CMHC (or equivalent) default insurance since it's above 80%.

What affects your result

  • Down payment size — the single biggest lever on a purchase; crossing 80% LTV specifically avoids default insurance entirely.
  • Property appraisal — on a refinance, your LTV depends on the lender's current appraisal of your property, not necessarily what you paid for it.
  • Mortgage balance paid down — every principal payment reduces your loan amount and therefore your LTV over time, gradually moving you toward or below the 80% threshold even without prepaying extra.
  • Prepayments — a lump-sum or extra monthly prepayment can be a deliberate strategy to cross the 80% threshold ahead of a refinance or to remove default insurance.

A note on accuracy

The LTV tiers shown reflect the standard federal insured-financing thresholds (65/80/95%), not a specific lender's pricing criteria, which can vary. This calculator does not factor in appraisal fees, legal fees, or a lender's specific risk appetite. For guidance on LTV and insured financing, seeCMHC — Mortgage Loan Insurance.

Frequently asked questions

What is my loan-to-value (LTV) in Canada?

Your LTV is your mortgage (loan) amount expressed as a percentage of your property's value. A $400,000 mortgage on a $500,000 property is an 80% LTV, meaning your down payment or equity makes up the remaining 20% ($100,000). Enter your figures into the calculator above to see your exact LTV and which tier it falls into.

Why is 80% LTV such an important number in Canada?

80% LTV is the key threshold in Canadian mortgage rules: at or below it, your mortgage is "conventional" and doesn't require mortgage default insurance. Above 80% LTV (a down payment below 20%), your mortgage is "high-ratio" and must be insured by CMHC, Sagen, or Canada Guaranty — see our CMHC Insurance Calculator to estimate that premium. 95% LTV (5% down) is the maximum allowed for insured financing on an eligible home.

How do I calculate LTV?

Divide your mortgage (loan) amount by the property value, then multiply by 100 to get a percentage: LTV = (loan amount ÷ property value) × 100. For a purchase, use the purchase price as the property value; for a refinance, use a recent appraisal or estimate of your current property value, and your outstanding mortgage balance as the loan amount.

Does a lower LTV get me a better mortgage rate in Canada?

Often, yes, though the effect is less pronounced than in some other countries because CMHC insurance (required above 80% LTV) partly offsets the lender's risk on high-ratio loans — meaning rates for insured mortgages can sometimes be very competitive despite the higher LTV. That said, crossing below 80% LTV avoids the insurance premium entirely, which is itself a real cost saving even before considering the rate.

What happens if my LTV is above 95%?

A mortgage above 95% LTV (less than 5% down) isn't available through standard insured financing in Canada — 5% down is the federal minimum on eligible homes under $500,000, with a higher minimum required as price increases. This calculator flags this tier clearly since it exceeds standard insured-financing limits and typically isn't obtainable through conventional channels.

How is LTV different from my down payment percentage?

They're two sides of the same coin: your down payment (or equity, if refinancing) percentage plus your LTV always add up to 100%. An 80% LTV mortgage means a 20% down payment; a 95% LTV mortgage means a 5% down payment. Lenders and mortgage documents often quote LTV directly, so it's worth getting comfortable converting between the two.

Related calculators

CMHC Insurance CalculatorSee whether your LTV requires mortgage default insurance.Mortgage Payment CalculatorSee your monthly payment once you know your loan amount.Refinance CalculatorCompare deals once you know your current LTV.