Combined Loan-To-Value Ratio (CLTV Ratio)

The Combined Loan-To-Value (CLTV) Ratio is a risk assessment metric used by lenders that measures the total outstanding debt secured against a property — including all mortgages, home equity loans, and other liens — as a percentage of the property's appraised value. Unlike the simple LTV ratio which considers only the primary mortgage, CLTV accounts for all debt layers, providing a more accurate picture of a borrower's total leverage and the lender's overall risk exposure. A higher CLTV indicates greater leverage and therefore higher credit risk. For investors analysing lending institutions, housing finance companies, and NBFCs listed on Ventura Securities, CLTV ratios are a key credit quality metric that influences provisioning requirements, loan approval standards, and NPA vulnerability in mortgage portfolios.