Loan So you can Well worth enables you to exercise the utmost amount borrowed, in line with the property value the property
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- Mortgage So you’re able to Rates allows you to work out maximum amount borrowed, in line with the total cost of your own investment.
- Both Mortgage So you’re able to Cost and you will Mortgage So you can Value are accustomed to exercise the utmost loan amount that can easily be granted so you’re able to an excellent borrower. They simply use a separate metric to decide it number.
Quick Summation
For instance, when your lender’s maximum LTC value are 90%, as well as the project is anticipated in order to costs $300,000, it indicates that one can possibly be eligible for a good $270,000 mortgage to pay for the project ($3 hundred,000 * 90%).
Furthermore, in case the lender’s limit LTV try 80% while the property value is actually $2 hundred,000, it means to potentially qualify for a $160,000 mortgage to pay for the property pick ($2 hundred,000 * 80%). Read more
