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Loan-to-value compares what you owe to what your home is worth. As a rule of thumb, an LTV (or combined LTV) under 80% is considered strong — it usually unlocks the best rates and the widest choice of lenders. Between 80% and 90% you can often still borrow, but at higher rates. Above 90% options narrow quickly.
Why 80% is the magic number
Keeping 20% equity gives lenders a cushion if prices fall, so it's the threshold where pricing improves. It's also the point where private mortgage insurance typically drops off a primary mortgage.
How to improve it
Pay down principal, avoid stacking new loans, and benefit from rising home values. See how to build home equity and check yours with the LTV calculator.