The LTV (Loan to Value) ratio and its impact on the bank's margin

LTV is the ratio of the loan amount to the value of the purchased property. If LTV is 80%, it means you have put in a 20% down payment. The lower the LTV, the safer the bank feels and the more willing it is to lower the margin, which translates into a cheaper installment for decades. How to lower LTV as quickly as possible? By buying a house directly from the owner, bypassing agency commissions! You throw the free cash saved this way into the down payment, automatically lowering the costs of the entire financing.