Loan-to-Value

Loan-to-Value, or LTV, is the mortgage balance divided by the property's appraised value. It governs two things: whether your mortgage is insured (LTV above 80% requires CMHC, Sagen, or Canada Guaranty insurance) and how much HELOC capacity is available (lenders typically cap combined first mortgage + HELOC at 80% LTV on uninsured).

LTV is the binding constraint on most refinance and readvanceable mortgage decisions. If you want to refi to fund a build or roll consumer debt into the mortgage, the lender works backwards from the 80% ceiling. If your post-build appraisal lands tight, you bring cash to close.