what is a high ratio loan 
a high ratio loan is a loan whereby the loan value is high relative to the property value being used as collateral mortgage loans that have high loan ratios have a loan value that approaches 100 of the value of the property a high ratio loan might be approved for a borrower who is unable to put down a large down payment for mortgages a high ratio loan usually means the loan value exceeds 80 of the property s value the calculation is called the loan to value ltv ratio which is an assessment of lending risk that financial institutions use before approving a mortgage the formula for a high ratio loan using ltvalthough there s no specific formula to calculate a high ratio loan investors should first calculate the loan to value ratio in their situation to determine if the loan exceeds the 80 ltv threshold loan to value ratio mortgage amount appraised property value text loan to value ratio frac text mortgage amount text appraised property value loan to value ratio appraised property valuemortgage amount 