Combined Loan To Value Calculator
Stack every lien against the property — first mortgage, second charge and HELOC — and see why an undrawn credit line still counts at its full limit.
Combined Loan To Value Calculator
Results recalculate instantly on every keystroke. Nothing you type is transmitted.
What this result does not account for
- Caps and HCLTV treatment vary by lender, product and occupancy.
- Does not price the subordinate debt or its payments.
- Assumes all liens are secured against the single property valued.
In short: CLTV divides all secured liens by value. A 248,000 first plus 45,000 drawn on a 60,000 HELOC is 68.14%, against a first-lien LTV of 57.67%. Underwriters count the undrawn limit too, giving an HCLTV of 71.63%.
Formula
CLTV = (first + second + drawn) ÷ value
HCLTV = (first + second + full HELOC limit) ÷ value
[('LTV', 'first lien only'), ('CLTV', 'every lien at its drawn balance'), ('HCLTV', 'credit lines counted at the approved limit'), ('headroom', 'cap multiplied by value, less total debt')]
Worked Example
- Total the first mortgage and every subordinate balance.
- Divide by the property value for the combined ratio.
- Recompute counting any HELOC at its full approved limit for HCLTV.
- Compare all three against the lender's cap, since each is tested.
- Subtract total debt from the capped amount for remaining capacity.
A 430,000 property with a 248,000 first mortgage has a 57.67% LTV. Draw 45,000 against a 60,000 HELOC and the CLTV becomes 68.14% — the subordinate lien contributing exactly 10.47 points, being 45,000 over 430,000. Underwriting then counts the full 60,000 limit, giving an HCLTV of 71.63%: 3.49 points added for 15,000 of credit never drawn. Against an 80% cap there is 51,000 of headroom.
Strengths & Limits Of This Model
Where this engine is strong
- Computes LTV, CLTV and HCLTV together
- Counts an undrawn credit line the way underwriters do
- Reports headroom to the cap in cash terms
Where it stops
- Lender treatment varies
- Does not price the debt
Practical Use Cases
Applying for a second charge
Checking the combined ratio a lender will underwrite to.
Understanding a decline
Discovering that an undrawn credit line caused the failure.
Planning a refinance
Establishing whether the second lender will need to subordinate.
Measuring true leverage
Seeing the whole capital stack rather than the first lien.
Finding borrowing capacity
Computing headroom before the cap binds.
Methodology & Editorial Standards
CLTV sums the first lien, any second charge and the drawn HELOC balance over value. HCLTV substitutes the greater of the approved limit and the drawn balance, matching agency underwriting practice. The page reports the contribution of subordinate debt as an explicit point difference, which equals the subordinate balance divided by value exactly. A drawn balance exceeding the approved limit is refused as an inconsistent input rather than silently computed.
Computation runs in IEEE-754 double precision at full internal precision; rounding to two decimal places occurs strictly at the display layer, so no cumulative drift enters the result. All monetary outputs use accounting presentation — grouped thousands, two decimals, negatives in parentheses — so figures can be transcribed directly into a model or working paper. Division-by-zero and out-of-domain inputs return an em-dash rather than a misleading number.
This engine was reconciled against an independent reference implementation and hand-verified for the worked example above before release. Our full five-stage review process is published on the About Us page.
Disclaimer. This calculator is provided for informational and modelling purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Verify all figures with a qualified professional before acting on them.
Combined Loan To Value Calculator — 10 Expert FAQs
10 analyst-written answers to the questions practitioners actually ask — optimised for voice and answer-engine retrieval.
What is the difference between LTV, CLTV and HCLTV?
LTV counts the first lien only. CLTV adds every subordinate balance. HCLTV counts approved credit lines at their full limit rather than the drawn amount. Lenders test all three and you must satisfy each, so passing the first says nothing about the third.
Why does an undrawn HELOC count against me?
Because you could draw it the day after closing, leaving the new lender behind more debt than they underwrote. Counting the full limit is how they protect against that. It surprises borrowers, but the logic is sound — an open line is a commitment already granted.
Can I close a HELOC to improve my ratio?
Yes, and it is a common and effective step before applying. Closing the line removes the undrawn limit from the HCLTV calculation entirely. Weigh it against losing access to the facility, which may be difficult to replace on the same terms.
What CLTV will lenders allow?
Commonly eighty to eighty-five per cent for a second charge on a primary residence, lower for investment property and lower again for cash-out. Some products reach ninety per cent for strong credit profiles, generally with pricing that reflects the additional risk.
What is lien position?
The order of repayment in a forced sale. The first lien is satisfied in full before the second receives anything, which makes subordinate debt genuinely riskier and explains its higher rates. Position is set by recording order, not by loan size or age.
What is subordination?
When you refinance a first mortgage the new loan would normally record behind the existing second, which no first-lien lender will accept. The second lender must sign a subordination agreement to stay behind the new first. They are not obliged to, and a refusal can prevent an otherwise sound refinance.
Does a home equity loan affect my first mortgage?
Not its terms, which are fixed by contract. It does affect your combined ratio, your total monthly obligations and your ability to refinance later, since any new first lien will require the second to subordinate. The first mortgage is unchanged; your options around it are not.
How do I lower my CLTV?
Repay subordinate debt, close undrawn lines, or wait for the value to rise — though a new lender will require a valuation to recognise that. Repaying the second charge is usually the most efficient route, because it reduces the numerator and often removes the higher-rate debt at the same time.
Is CLTV used for investment property?
Yes, and generally with tighter caps than a primary residence. Portfolio investors should also expect scrutiny of cross-collateralised debt, since a lien against one property in a portfolio can affect underwriting on another.
Which ratio matters most?
Whichever is highest, because that is the one that will bind. There is no benefit in a comfortable first-lien LTV if the HCLTV exceeds the cap. Compute all three before applying and assume the lender will underwrite to the worst of them.