What Is the Typical Loan-to-Value Ratio for Private Mortgages in BC?
September 6, 2026 | Posted by: Alex Vinarski
One of the most important factors when applying for a private mortgage in British Columbia is the loan-to-value (LTV) ratio.
LTV compares the total mortgage financing to the appraised value of the property. Because private lenders are primarily concerned with the property's equity and their ability to recover their investment, LTV is one of the most important factors when determining how much they are willing to lend and what interest rate they will offer.
What is a typical LTV for a private mortgage?
For a private first and second mortgage in BC, 65% to 75% LTV is a common range, depending on the property type, location and lender. However, the maximum LTV can be lower for certain types of properties. On exception LTV can be up to 80%.
Private mortgages on condos
Currently, most private lenders are limiting condos to 65% LTV. This means that if a condo is appraised at $800,000, a lender may limit the mortgage to approximately $520,000.
The exact maximum depends on the lender, the building, location, property value and other factors. Some lenders may have different guidelines, but borrowers should not assume that a condo can automatically qualify for the same LTV as a detached house.
Lower LTV can mean a better interest rate
When comparing private mortgage options, it's important to understand that the interest rate is often affected by the LTV.
Generally, the lower the LTV, the lower the risk for the lender. As a result, many private lenders offer better rates to borrowers who have more equity in their property.
This is why I always recommend looking at the overall cost of the mortgage, rather than simply asking what the maximum amount a lender will provide.
Why does LTV matter?
LTV can affect:
- The maximum amount you can borrow
- The interest rate
- The lender fee
- The number of lenders available for your mortgage
- The terms and conditions of the mortgage
Property type and location are also important. Detached homes and townhouses in major BC markets may qualify for higher LTVs than condos, rural properties or properties that are more difficult to sell.
Private mortgages in Vancouver and throughout BC
I specialize in private and alternative mortgages in Vancouver and throughout British Columbia. I work with multiple private lenders and can compare different lending options based on your property value, available equity and financial situation.
If you are looking for a private mortgage in Vancouver or anywhere in BC, contact me to discuss your options.
