Glossary - L
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Mortgage Brokers Glossary - L
- Land Transfer Tax (LTT)
- A tax payable to the Provincial Government by the purchaser upon the transfer of title from a seller. In Ontario a simple formula applies*:
First $55,000; One half percent. (0.5%) $55-250,000; One percent. Over $250,000; One and a half percent.
Example:
Price
= $370,000: LTT = ($55,000 * 0.5%) + ($195,000 * 1%) + ($120,000 * 1.5%)
= $275 + $1,950 + $1,800 = $4,025.
*Please check with your Realtor as to the rates applicable in your location. Subject to Change
- Lien
- This is a claim made against a property for the payment of a debt or obligation related to the property or its owners.
- Loan-to-Value ratio (LTV)
- The percentage of the value of the property for which a mortgage is required. This ratio is important in determining whether or not default insurance is required, and if so, what the cost of that insurance will be (see "Mortgage Insurance") For example, if the property value is $200,000, the down payment available is $20,000 and the required mortgage is $180,000. The LTV is $180,000 / $200,000 or 90%.
