01/02/2023
Do You Know What is LTV?
For example, if you borrow $750k to purchase a property valued at 1 million, the LTV is 75%.
We love our acronyms: CTE, AYE, COE, HDB.
LTV is another acronym you need to know if you are taking a loan for your dream home.
The loan amount as a percentage of the property's value: the higher your downpayment, the lower your LTV ratio.
For new property, the loan-to-value ratio is calculated from the price you are paying for that property.
If you agree at a higher cost than the valuation price for resale property, the difference between these two amounts is called Cash Over Value (COV). Another acronym :)
Unfortunately, COV have to be paid in cash $$$
Bad news for those who don't have that much cash on hand, but I can help you in this situation. Call me up, and let's discuss it over coffee.