REAL ESTATE GLOSSARY
CLTV
Combined Loan-to-Value Ratio
All loans secured by a property divided by that property's value.
What does CLTV mean?
All loans secured by a property divided by that property's value. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
CLTV in context
A first and second lien totaling $800,000 on a $1 million asset create an 80% CLTV.
Why it matters in financing
CLTV can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related real estate terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.