What is the Optimized Rate?
The Optimized Rate is a lower interest rate available on eligible loans when your loan-to-value ratio, or LTV, stays at or below 25%.
If your LTV goes above 25%, your loan will move to the Standard Rate.
This gives you flexibility. You can keep the lower Optimized Rate by keeping your LTV at or below 25%, or you can continue with your loan at the Standard Rate if your LTV increases.
What is LTV?
To learn more what is LTV and when it can change check this article: What is Loan-to-Value (LTV)?
When Does the Optimized Rate Apply?
Your loan will either have the Optimized Rate, or the Standard Rate:
-
Optimized Rate: 1.9% per year (as of May 26th, 2026 - subject to change)
Applies when your LTV is below 25%. -
Standard Rate: 8.9% per year (as of May 26th, 2026 - subject to change)
Applies when your LTV is at or goes above 25%.
As long as your LTV stays at or below 25%, you keep the Optimized Rate.
If your LTV goes above 25%, your loan moves to the Standard Rate.
Interest is calculated daily based on the annual rate that applies to your loan on that day. This means that if your loan moves from the Optimized Rate to the Standard Rate, the new rate will apply from the day your LTV is above the 25% threshold.
Review different scenarios below: Examples
How Can I Keep the Optimized Rate?
To keep the Optimized Rate, your LTV needs to stay at or below 25%.
You can lower your LTV by:
Adding collateral
This increases the value backing your loan.
Making a partial repayment
This reduces the amount you have borrowed.
Both actions can help bring your LTV down.
What Happens If I Do Nothing?
If your LTV goes above 25% and you do not take action, your loan will move to the Standard Rate.
This does not mean your loan is in default. It only means your loan no longer qualifies for the lower Optimized Rate while your LTV is above 25%.
Interest will be calculated daily using the Standard Rate for the days when your LTV is above 25%.
Will I Be Notified?
We may notify you when your LTV reaches 20%.
This alert is only a heads-up. It does not mean your rate has changed.
Your rate only changes if your LTV goes above 25%.
Can I Return to the Optimized Rate?
Yes, if your loan is eligible and your LTV returns to or below 25%, your loan may return to the Optimized Rate.
This can happen if you add collateral, make a partial repayment, or if the value of your collateral increases.
Once your loan returns to the Optimized Rate, interest will be calculated daily using the Optimized Rate again.
Simple Examples
Example 1: Your LTV is below 25%
You borrowed $50,000.
Your collateral is worth $300,000.
Your LTV is about 17%.
Because your LTV is below 25%, you keep the Optimized Rate.
Interest for that day is calculated using the Optimized Rate.
Example 2: Your LTV reaches 20%
You borrowed $50,000.
Your collateral is worth $250,000.
Your LTV is 20%.
You are still below the 25% threshold, so your rate does not change.
We may send you a notification at this point to let you know your LTV is getting closer to 25%. This gives you time to add collateral or make a partial repayment if you want to keep the Optimized Rate.
Interest is still calculated using the Optimized Rate.
Example 3: Your LTV goes above 25%
You borrowed $50,000.
Your collateral is worth $190,000.
Your LTV is about 26%.
Because your LTV is above 25%, your loan moves to the Standard Rate.
Interest is then calculated daily using the Standard Rate for as long as the loan remains above the 25% threshold.
You can continue with the loan at the Standard Rate, or you can reduce your LTV to try to return to the Optimized Rate.