What are the LTV ratio requirements for different types of mortgages?
LTV caps: 95% insured for owner-occupied up to $1.5M, 80% uninsured on primary residence, 80% on rentals, and typically 65% on raw land or construction draws.
Key Points
If your down payment is less than 20%, you'll need mortgage insurance.
With a down payment of 20% or more, you typically don't need mortgage insurance.
For higher-risk mortgages, you may need a larger down payment of at least 35%.
Higher-risk mortgages can include those where it's hard to prove your income, your credit score is low, or the property is difficult to sell.
Home equity lines of credit (HELOCs) can increase your overall debt, so lenders consider this carefully.
Primary sources
Primary sources cited by the Ratellow Research Team. Editorial standards · Correction policy
Related Questions
How does mortgage insurance enable lower down payments?
Mortgage insurance lowers the risk for lenders, allowing them to offer mortgages to borrowers with down payments between 5% and 20%.
How will lenders evaluate my debt service ratios, and what key factors are considered?
Lenders assess your ability to repay the mortgage by calculating your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios.
What property considerations impact my mortgage application?
Lenders carefully assess the property's value and characteristics, directly influencing the loan amount you can secure.
How does the 'straight switch' exemption benefit you at renewal?
The 'straight switch' exemption lets uninsured mortgage borrowers move their mortgage to a new federally regulated lender (FRFI) at renewal without needing to pass the Minimum Qualifying Rate (MQR) .