Combined Loan To Value Ratio - CLTV Ratio

A figure used to measure how leveraged a property owner is. The combined loan-to-value ratio takes the total amount of mortgage debt attributed to the property and compares it to the value of the property. The higher the number, the more the amount of debt approaches the value of the asset (if the number tops 1.0, then uh-oh).

So if a home is valued at $250,000 and has one mortgage of $75,000 and a second mortgage of $50,000, then the CLTV figure would equal $75,000 plus $50,000, all divided by $250,000. In this case, the final figure would total 0.5, or 50%.

There's a similar figure called the loan-to-value ratio, or LTV. The LTV measures one particular loan (in the example above, it could measure the first $75,000 loan versus the $250,000 property). Meanwhile, the combined loan-to-value ratio measures all loans against the value of a property.

If a property only has a single mortgage (as is common in a home mortgage situation), the LTV and CLTV would be the same.