high ratio loan

Popular Terms
A loan of any type where only a relatively small down payment is required. For example a mortgage loan with a down payment of less than 20% of the total house price. Most high ratio loans require extra insurance coverage to protect the lender from the higher risk, and are accordingly charged higher interest rates than lower ration loans. The wisdom of allowing such loans has been called into question in the aftermath of the 2008 mortgage crisis.


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