# 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.

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/what-are-the-ltv-ratio-requirements-for-different-types-of-mortgages

## Answer
The LTV ratio is critical for defining residential mortgages; FRFIs must align their LTV limits with the risk of each mortgage type [osfi-b20-baseline, LTV Ratio and Loan Type]. Residential mortgages with LTV ratios exceeding 80% require insurance, as mandated by the _Bank Act_, subsection 418(1); _Trust and Loan Companies Act_, subsection 418(1); _Insurance Companies Act_, subsection 469(1); and the _Cooperative Credit Associations Act_, subsection 382.1 (1).

## Institutional highlights
- 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.

## Related guide
- https://ratellow.com/guides/new-construction-draws

## Sources
- 4.1.13 Land acquisition, development and construction exposures — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-2026-chapter-4-credit-risk-standardized-approach#4.1.13
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- Page 3 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3