The Loan-to-Value (LTV) ratio in a mortgage in Canada is a measure of the size of the mortgage against the value of the property. It is calculated by dividing the mortgage amount by the property’s appraised value and converting it to a percentage. LTV is crucial in assessing the risk associated with the loan—the higher the LTV, the greater the lender’s risk. In Canada, it plays a significant role in determining if mortgage insurance is required, typically for LTV ratios exceeding 80%. Understanding LTV is an important factor in shaping a borrower’s mortgage and home ownership journey.