Buying a home in Singapore is often the biggest financial decision you will ever make. Understanding the LTV ratio Singapore rules – how much you can borrow and how much down payment you must prepare – is critical to avoid nasty surprises and to buy safely and confidently.
This definitive Homejourney guide explains what loan-to-value (LTV) is, how LTV limits MAS work, how they affect your down payment requirements, and the real impact on first-time buyers, upgraders, and investors. We will also show you how to use Homejourney’s tools to compare property loan percentage across banks and calculate your eligibility safely.
Table of Contents
- What Is Loan-to-Value (LTV) Ratio in Singapore?
- Current MAS LTV Limits and Down Payment Requirements (2025–2026)
- How LTV Affects First-Time Buyers, Upgraders and Investors
- How to Calculate Your LTV and Down Payment Step-by-Step
- Factors That Can Reduce Your LTV Limit
- LTV for HDB Loans vs Bank Loans in Singapore
- How LTV Interacts with TDSR, MSR and CPF Usage
- Interest Rates, SORA and Why LTV Matters Even More When Rates Move
- Practical Homejourney Strategies to Optimise Your LTV Safely
- Real-Life Singapore Case Studies and Insider Tips
- Frequently Asked Questions About LTV Ratio in Singapore
- Next Steps: How Homejourney Helps You Borrow Safely
What Is Loan-to-Value (LTV) Ratio in Singapore?
The loan-to-value (LTV) ratio is the maximum loan amount you are allowed to borrow, expressed as a percentage of your property’s value or purchase price, whichever is lower.[4] For example, if your LTV limit is 75% and the bank values your property at S$1,000,000, the maximum loan you can take is S$750,000.[2][4]
In Singapore, the Monetary Authority of Singapore (MAS) sets regulatory limits on LTV to prevent over-borrowing and maintain a stable property market.[3][4][7] Individual banks then decide how much to lend you, up to those limits, based on your income, credit history, and risk profile.[2]
Simple definition for home buyers: LTV ratio tells you what property loan percentage a bank or HDB is prepared to finance, and how much cash/CPF down payment you must prepare.
Basic LTV formula
The LTV ratio is calculated using a simple formula:[2][4]
LTV ratio = (Loan Amount ÷ Property Value) × 100%
Example: If you borrow S$600,000 for a property valued at S$1,000,000:
LTV = (600,000 ÷ 1,000,000) × 100% = 60%.
“Lower of price or valuation” – why it matters
In Singapore, the allowed loan is based on the lower of the purchase price or the bank/HDB valuation, not necessarily the price you pay.[2][4] If you pay above valuation (common in hot areas like Toa Payoh or Queenstown resale HDB flats), you must top up the difference fully in cash.
Example: You agree to buy a resale HDB flat near Bishan MRT at S$900,000, but the valuation is S$850,000. Even if your LTV limit is 75%, your maximum loan is 75% of S$850,000 = S$637,500, not 75% of S$900,000. The S$50,000 ‘cash over valuation’ (COV) must be paid fully in cash.
Current MAS LTV Limits and Down Payment Requirements (2025–2026)
MAS sets different LTV limits depending on:
- Whether you are borrowing as an individual or a company
- Whether it is your first, second, or third housing loan
- Loan tenure and whether it extends beyond age 65
- Whether the loan is from HDB (concessionary loan) or a bank/financial institution
Headline LTV limits for individual borrowers (banks)
Based on MAS rules and common market interpretation, the maximum LTV limits for individuals taking loans from banks/financial institutions are roughly as follows for residential properties:[2][4][8]
These are maximum regulatory ceilings. Individual banks can offer you less than these LTVs depending on your risk profile.
Latest LTV for HDB concessionary loans
For HDB concessionary loans, the maximum LTV has been progressively tightened to maintain affordability.[1][2] As of August 2024, the maximum LTV for HDB concessionary loans is 75%.[2] This means you must fund at least 25% of the HDB price via cash and/or CPF.
Key points for HDB concessionary loans:[1][2]
- Max LTV: 75%
- Minimum 25% down payment (can be all CPF OA, no mandatory cash if CPF is sufficient)[2]
- LTV applies on the lower of purchase price or HDB valuation
LTV for non-individual (company) borrowers
For residential property loans to non-individual borrowers like companies or shell entities, MAS caps LTV much lower (around 15–40%) to discourage speculative buying.[1][2][5] Most genuine home buyers will be borrowing as individuals, but this is relevant for sophisticated investors who sometimes consider buying via a company.
How LTV Affects First-Time Buyers, Upgraders and Investors
LTV limits shape your home buying and investing journey from day one. They determine:
- How much you can borrow
- How much cash and CPF you must prepare upfront
- Whether you can afford to hold multiple properties
First-time home buyers
If this is your first property and you have no existing housing loan, you usually qualify for the highest LTV (up to 75%), assuming your loan tenure does not exceed 30 years or age 65 and your TDSR is within 55%.[2] This is helpful if you are buying a BTO in Punggol, a resale flat in Jurong, or a private condo in Sengkang, as it reduces the immediate cash/CPF burden.
However, taking the maximum LTV is not always wise. A higher loan means higher monthly instalments and more interest paid over 25–30 years. Homejourney’s view is that you should aim for an LTV that keeps your monthly instalments comfortable even if interest rates rise.
HDB upgraders
For HDB upgraders eyeing a private condo in areas like Tampines, Bukit Batok, or Woodlands, LTV becomes trickier. If you still have an outstanding HDB loan when buying your private property, your next loan’s LTV may drop to 45% or even 25% depending on tenure.[2] That means you must prepare a much larger down payment.
Many upgraders therefore plan carefully: either fully redeeming the first loan before buying the next property, or selling the existing flat before exercising the Option to Purchase for the new home. Homejourney’s eligibility calculator at Bank Rates can help you model different scenarios safely.
Investors and multiple-property owners
For second and third properties – for example, keeping your existing Punggol EC and buying a freehold apartment in Thomson – LTV limits drop sharply:[2]
- Second property: up to 45% or 25%
- Third and subsequent: up to 35% or 15%
At these low LTVs, investors must be prepared to commit a very high equity portion (cash and CPF) and also pay higher Additional Buyer’s Stamp Duty (ABSD). LTV limits act as a brake on over-leveraging so you do not end up with unsustainable debt if rents fall or interest rates spike.
How to Calculate Your LTV and Down Payment Step-by-Step
This section walks through practical calculations that mirror what Homejourney users often do before visiting showflats in areas like Lentor, Jurong Lake District, or Kallang.
Step 1: Determine the valuation vs purchase price
Check indicative valuations across banks or via your agent, especially for resale properties. Remember: your loan is capped based on the lower of purchase price and valuation.[2][4]
Step 2: Identify your applicable LTV band
Ask yourself:
- Is this my first, second or third housing loan?
- Will my loan tenure exceed 30 years (private) or 25 years (HDB)?[1][2]
- Will the loan tenure stretch beyond age 65?
Use the earlier LTV table to find your maximum LTV band.[2]
Step 3: Compute the maximum loan amount
Formula:
Max loan quantum = Property value × LTV %
Example 1 – First-time buyer, private condo:
- Purchase price: S$1,200,000
- Valuation: S$1,150,000
- Lower of the two: S$1,150,000
- LTV: 75% (first loan, tenure 25 years, borrower age 32)[2]
Max loan = 1,150,000 × 75% = S$862,500.
Example 2 – Second property, tenure exceeds age 65:
- Purchase price and valuation: S$1,500,000
- Existing housing loan: 1
- Buyer age: 45, intended tenure: 25 years → loan goes to age 70
- LTV limit: 25% (second loan, tenure beyond age 65)[2]
Max loan = 1,500,000 × 25% = S$375,000.
Step 4: Work out your down payment (cash vs CPF)
Once the max loan is known, your total down payment is:
Total down payment = Purchase price – Loan amount
Then split between:
- Mandatory minimum cash component (e.g. 5%, 10%, or 25%)[2]
- Remaining down payment funded via CPF OA and/or extra cash
