Lending & investment · Defined
Loan-to-value ratio (LTV)
The loan amount expressed as a percentage of the property value used for underwriting. The valuation may describe the property as it exists, upon completion, or at stabilization.
Why it matters
LTV and LTC answer different questions. Identify the value date and premise before comparing leverage figures; a forecast stabilized value is not today’s cash collateral.
In practice
A project example
Two loans with the same principal can have different LTV ratios when one uses an as-is value and the other a stabilized value.
Technical references
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.