LTV stands for loan-to-value and for mortgages, it’s the amount of your loan compared to the value of the property you’re buying. You’ll see it as a percentage. To calculate your LTV, first, divide your mortgage amount by the property value. Then, multiply your answer by 100. This number is important to lenders because it helps them understand the risk associated with the loan they’re extending. As a borrower, LTV would be important to you because it influences the interest rate you would be paying for your loan. The lower your LTV, the less risk the lender takes on in extending that mortgage. That translates into a lower interest rate. Of course, the opposite is also true. Higher LTVs mean the lender would be assuming more risk and could charge a higher interest rate in return. The best way to a low LTV is to save as much as you can towards your down payment or deposit on your home. The more money you have to put down, the less you have to borrow, making your LTV and potentially your interest rate lower.