Property investing
Loan-to-value ratio Also called: LTV
Plain-English definition
The loan balance divided by the property’s value, expressed as a percentage.
What loan-to-value ratio means in practice LTV is a leverage measure used by owners and lenders. A higher ratio means less equity cushion and can affect loan pricing, approval, and risk.
Example
A $240,000 loan on a property valued at $300,000 has an 80% LTV.
RentCaddie keeps rent, leases, maintenance, and the books in one workspace.
This glossary is educational and not legal, tax, lending, or accounting advice. Rules and terminology can vary by jurisdiction and professional context.