The Loan-to-Cost Ratio (LTC) in real estate is a measure of the amount of debt used to finance a project relative to the total cost of the project. It is used by lenders to assess the risk of a real estate project. A higher LTC ratio means that the lender is providing more financing for the project, which increases the lender’s risk. A lower LTC ratio means that the borrower is contributing more equity to the project, which reduces the lender’s risk.

Follow us on Google News