Understanding CLTV vs LTV

CLTV (Combined Loan-to-Value) differs from LTV as it includes all mortgages tied to the subject property that are not being paid off, not just the primary loan amount.

CLTV Calculation

CLTV is calculated using the following formula:

(New Loan Amount + Existing Mortgages) ÷ Property Value = CLTV%

All existing mortgages on the Verification of Loan (VOL) that are not being paid off must be included in this calculation.

Updating CLTV After Change of Circumstance

When a Change of Circumstance (COC) has been submitted to reduce the loan amount:

1. Ensure the COC has been properly submitted
2. Verify the new loan amount reflects the intended reduction
3. Recalculate the CLTV using the updated loan amount

Refreshing System Data

To ensure CLTV calculations are updated in the system:

1. Save all changes to the loan
2. Exit the loan completely
3. Re-enter the loan to refresh the calculations

This process ensures that updated loan amounts and CLTV ratios are properly reflected in the system.