- Your loan to value is exactly what it sounds like, the size of your mortgage in relation to the value, written as a percentage.
- If your loan to value is more than 80%, you have what is called a high-ratio mortgage.
- A high-ratio mortgage is when you own less than 20% of your home.
- If you own less than 20% you are required to get mortgage default insurance
- A conventional mortgage is when you own 20% or more of your home and your mortgage amount is less than 80% of the value of your home.
