LTV Calculator Canada 2026

Calculate your loan-to-value ratio, equity position, and CMHC insurance thresholds for Canadian mortgages.

FAQ

What is a good LTV ratio in Canada?

An LTV of 80% or lower is generally considered good because it means you have at least 20% equity and don't need mortgage default insurance. This saves you thousands of dollars in insurance premiums and often qualifies you for better interest rates. An LTV of 65% or lower is considered excellent and gives you the most flexibility for refinancing and accessing home equity lines of credit (HELOCs). However, many first-time buyers start with a higher LTV (up to 95%) and build equity over time.

How is the CMHC insurance premium calculated?

The CMHC premium is a percentage of the mortgage amount (not the property price) and varies by LTV tier. Premiums range from 2.80% (15%-19.99% down) to 3.10% (10%-14.99% down) to 4.00% (5%-9.99% down). The premium is a one-time charge typically added to your mortgage balance and amortized over the life of the mortgage. On a $500,000 home with 5% down, the insurance premium would be $19,000 (4.00% of $475,000).

Does my LTV affect my mortgage rate?

Yes, but perhaps not in the way you'd expect. Insured mortgages (LTV above 80%) sometimes carry slightly lower interest rates than uninsured mortgages because the lender's risk is covered by the insurer. However, the total cost is higher once you factor in the insurance premium. At very low LTV ratios (below 65%), some lenders offer their best rates because the risk is minimal.

How do I calculate LTV on a property I already own?

To calculate your current LTV, divide your remaining mortgage balance by your property's current market value. For example, if you owe $350,000 on a home now worth $600,000, your LTV is 58.3%. Your lender will require a formal appraisal if you're applying to refinance or set up a HELOC. When refinancing, the maximum LTV allowed in Canada is 80% — you cannot refinance with less than 20% equity.

How does this calculator work?

Enter the property purchase price and your planned down payment. The calculator divides your mortgage amount by the property value to get your LTV ratio, determines whether CMHC mortgage default insurance is required, and applies the appropriate premium tier to show the total mortgage amount including the insurance premium (typically added to the mortgage balance). For properties over $500,000, the minimum down payment uses Canada's tiered system — 5% on the first $500,000 and 10% on the portion above, while properties at $1,500,000 or more require 20% down and cannot be insured. It also shows how your LTV changes if you adjust your down payment.