A 65% LTV on a $10M property means a $6.5M loan and $3.5M equity. Most senior commercial loans cap out between 55% and 75% LTV depending on asset class and sponsor, with multifamily agency debt going highest and hotel / specialty assets lowest.
LTV is set at origination; loan-to-cost (LTC) is the equivalent ratio for development deals where you don't have a stabilized value yet. Both shift over the life of the loan as principal pays down and as the property's value moves — a deal originated at 70% LTV can drift to 80% if the market drops, which is one of the levers behind extension and recapitalization negotiations.
