Mortgage term
Loan-to-value (LTV)
Definition
The ratio of your mortgage balance to your home's appraised value. LTV below 80% is 'conventional'; above 80% requires default insurance (CMHC, Sagen, Canada Guaranty). LTV affects the rates you qualify for.
On a $600,000 home with a $400,000 mortgage, your LTV is 66.7%. At renewal, lenders use either the original purchase price + limited adjustments, or a fresh appraisal, to establish current LTV.
Insured (originally under 20% down) mortgages keep insured pricing for the life of the amortization — typically 0.15%–0.30% below uninsured rates. This is a real, permanent pricing advantage.