First Time Home Buyer

High Ratio vs Conventional Mortgage

Key Take-Aways

  • Your loan to value is exactly what it sounds like, the size of your mortgage in relation to the value, written as a percentage.
  • If your loan to value is more than 80%, you have what is called a high-ratio mortgage.
  • A high-ratio mortgage is when you own less than 20% of your home.
  • If you own less than 20% you are required to get mortgage default insurance

  • A conventional mortgage is when you own 20% or more of your home and your mortgage amount is less than 80% of the value of your home.

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