Canada
Canada LTV calculator
Your loan-to-value ratio — the number lenders lean on most to price your mortgage and decide what you qualify for.
Property & down payment
Loan-to-value
85.0%
Borrowing $340,000 against a $400,000 property.
- Your equity from day one
- 15.0%
- Loan amount
- $340,000
An estimate for planning — not financial advice. LTV is simply the loan divided by the property value; lender rules and thresholds vary.
Loan-to-value (LTV) is your mortgage as a percentage of the home's price, and in Canada it decides one big thing: whether you need CMHC mortgage default insurance. Put down less than 20% and your mortgage is “high-ratio” and must be insured; put down 20% or more and it's conventional, with no insurance premium.
How this calculator works
LTV = loan ÷ purchase price. A $450,000 loan on a $500,000 home is 90% LTV. The more you put down, the lower the LTV.
Below 20% down (above 80% LTV), Canadian rules require mortgage default insurance from CMHC, Sagen, or Canada Guaranty. The premium is a percentage of the loan that rises as your down payment shrinks, and it's usually added to the mortgage rather than paid at closing.
At 20% down or more (80% LTV or below) the mortgage is conventional, with no insurance premium. That's the threshold most Canadian buyers aim for — and why LTV is worth checking before you make an offer.
A worked example
On a $500,000 home, the down payment decides whether CMHC insurance applies:
- 10% down → loan
- $450,000 · LTV 90% → insured (CMHC required)
- 20% down → loan
- $400,000 · LTV 80% → conventional (no insurance)
LTV is simply loan ÷ price. The 80% line (20% down) is the threshold between an insured 'high-ratio' mortgage and a conventional one.
Who it's for
- You have less than 20% down and want to know whether you'll need CMHC insurance.
- You're comparing down-payment levels to see how your LTV changes.
- You want to understand why 20% down is the number everyone talks about.
Frequently asked questions
What LTV do I need to avoid CMHC insurance?
80% or below — meaning 20% down or more. Above 80% LTV (under 20% down), mortgage default insurance is mandatory in Canada.
How much is the CMHC premium?
It's a percentage of the loan that increases as your down payment falls, and it's typically added to your mortgage balance rather than paid upfront. The exact rate depends on your LTV band — check the current CMHC premium schedule for the figure.
Does a bigger down payment lower my rate?
Not directly, but it lowers your LTV and removes the insurance premium once you reach 20% down. Some lenders also price conventional mortgages differently from insured ones.
Is the insurance premium paid upfront?
Usually it's added to your mortgage and paid off over the amortization. Where a province charges sales tax on the premium, that tax portion is paid at closing.