How Loan-to-Value Ratio affects rates of mortgages. The most expensive mortgages are where the loan amount verses the value of the property (LTV) is between 65-80%. The reason why they are more expensive is because of the extra regulatory and costs related to managing those mortgages. The lenders pass those costs onto the client.
However, if the mortgage has a loan to value under 65%, in today’s market, a variable rate mortgage will be better than a 5-year fixed rate mortgage.
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