LTV (loan to value)

Loan-to-value ratio (LTV) is the amount of the mortgage loan (liability) compared to the value of the property. This ratio is calculated by the lender prior to providing the loan. The results of this calculation help to determine whether or not the applicant will qualify for a loan and whether the application, if approved, will be for a conventional loan or a high ratio loan. This ratio is calculated by the lender prior to providing a mortgage. The results of this calculation help to determine whether or not the applicant will qualify for a loan and whether the application, if approved, will be for a conventional loan or a high ratio loan.

Here is an example if you are putting 5% down on a purchase, the LTV would be 95%.

(Source:  CAAMP & Jessi Johnson)