👉 “Your deal works at 65% LTV… but not at 75%”
You’re probably wondering…
👉 What does that even mean?
If you’re searching “what is LTV mortgage” or “max LTV private mortgage Ontario” — this is one of the most important concepts you need to understand.
Because:
LTV isn’t just a number… it determines whether your deal gets approved or declined.
🧠 What Is LTV (Loan-to-Value)?
LTV stands for:
👉 Loan-to-Value Ratio
It’s simply:
How much you’re borrowing compared to what the property is worth
📊 Simple Example
- Property value: $1,000,000
- Mortgage amount: $700,000
👉 LTV = 70%
🚨 Why LTV Matters So Much
Lenders don’t just look at income or credit.
👉 They look at risk
And LTV tells them:
✔ How much equity you have
✔ How protected they are
✔ How risky the deal is
👉 Lower LTV = lower risk
👉 Higher LTV = higher risk
🔢 The Key LTV Thresholds (THIS Is What Matters)
Let’s break down what actually happens at different levels:
🟢 50% LTV (LOW RISK)
- Strong equity position
- Highest approval odds
- Best pricing available
👉 These deals are the easiest to fund
🟡 65% LTV (MODERATE RISK)
- Still strong equity
- Most deals still work
- Slightly higher rates possible
👉 This is a very common approval range
🟠 75% LTV (HIGHER RISK)
- Maximum range for many private lenders
- Stricter deal structure
- Higher rates and tighter terms
👉 Approval depends heavily on the full scenario
🔴 Above 75% LTV (LIMITED OPTIONS)
- Very few lenders
- Highly restricted deals
- Strong compensating factors required
👉 Many deals get declined here
🧠 Why LTV Directly Affects Approval
Think of it like this:
👉 The more equity you have…
👉 The more comfortable the lender is.
Because if anything goes wrong:
👉 They have a cushion.
📉 Real Scenario
Scenario A:
- Property value: $1,000,000
-
Mortgage needed: $500,000
👉 50% LTV
✔ Easy approval
Scenario B:
- Property value: $1,000,000
-
Mortgage needed: $750,000
👉 75% LTV
⚠️ Possible—but tighter
Scenario C:
- Property value: $1,000,000
-
Mortgage needed: $850,000
👉 85% LTV
❌ Likely declined (private lending scenario)
⚡ How to Improve Your LTV (And Get Approved)
If your LTV is too high:
✔ Add more down payment
✔ Pay down existing debt
✔ Adjust loan structure
✔ Use a second mortgage instead
👉 Small changes can make a deal work
🔑 LTV in Private Lending (The Real Advantage)
Private lenders rely heavily on LTV.
At Lendworth:
✔ Deals are structured based on equity
✔ Flexibility increases with lower LTV
✔ Fast approvals when equity is strong
👉 It’s one of the most important factors in every deal
🔗 Learn More About Your Options
🧠 The Truth Most Borrowers Miss
You don’t get approved because of income alone… you get approved because of equity.
And LTV is how lenders measure that.
⚡ The Bottom Line
✔ LTV = loan amount ÷ property value
✔ Lower LTV = higher approval odds
✔ 50%–65% = strongest deals
✔ 75% = upper range for many private lenders
📞 Want to Know Your LTV (And Approval Odds)?
✔ No pressure
✔ No obligation
✔ No credit check to start
📞 Call: 905-597-1225
🌐 Visit: www.lendworth.ca