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Kalkine Media ASX Share Market News & Research

Definition

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Loan-to-Value (LTV) Ratio

  • Updated on

The loan-to-value or LTV ratio is an evaluation of the lending threat that financial institutions as well as other lenders investigate before mortgage approval.

Typically, the evaluations with high Loan-to-Value ratios carry greater risk and, hence, if the mortgage is permitted, the cost of loan to the borrower is high.

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