LTV for Investment Property Singapore: Homejourney Guide

LTV for investment property in Singapore determines how much you can borrow for your second property LTV or additional homes, directly impacting your down payment investor requirements and overall strategy. This definitive Homejourney pillar guide covers everything from investor LTV limit rules to practical calculations, helping you invest safely in a trusted environment.

Homejourney prioritizes your safety with verified data and transparent tools like our bank rates page, where you can compare DBS, OCBC, UOB rates instantly.

What is LTV for Investment Property?
Current LTV Limits for Investors
How to Calculate Loan to Value Investment
Factors Affecting Your Investor LTV Limit
HDB vs Bank Loans for Second Properties
Real Singapore Investment Examples
TDSR and MSR for Investors
ABSD and Stamp Duties Impact
Homejourney Tools for Investors
FAQ

What is LTV for Investment Property?

The Loan-to-Value (LTV) ratio is the percentage of a property's purchase price or value that banks or HDB will finance through a loan.[1][2] For LTV investment property, it limits borrowing to prevent overleveraging, especially for second property LTV or more.

In Singapore, MAS regulates LTV to ensure market stability.[5] For investors, lower LTV means higher down payment investor requirements, protecting you from debt risks in a trusted buying journey.[1]

Homejourney verifies these rules daily, helping you calculate affordability on our mortgage calculator.

Why LTV Matters for Singapore Investors

High LTV allows more leverage but increases risk if rents drop or values fall. Recent cooling measures lowered limits to promote affordability.[1] Investors must balance loan to value investment with rental yields—see our related article Rental Yield vs Mortgage: Cash Flow Analysis for Singapore Investors ">Rental Yield vs Mortgage Analysis.

As of 2026, with property prices stable, understanding investor LTV limit is key for cash flow positive investments.

Current LTV Limits for Investors in Singapore

Singapore's LTV caps depend on existing loans, property type, and tenure.[1][2][5] No existing loans allow up to 75% LTV for bank loans (55% for long tenures); HDB loans cap at 80%.[1]

For second property LTV, limits drop significantly:

Number of Existing Loans	Standard LTV (≤30 years)	Reduced LTV (>30 years or age 65+)	Min Cash Downpayment
0	75%	55%	5-10%
1 (Second Property)	45%	25%	10-20%
2 or more	35%	15%	25%+

Data from MAS and banks like DBS, OCBC.[1][2] For investment condos, use valuation or price, whichever lower.[5]

HDB-Specific LTV for Investors

HDB resale for investors (non-first-timer) follows bank LTV but with 80% HDB loan cap.[1] Private properties for LTV investment property stick to 75%/45% tiers.

How to Calculate Loan to Value Investment

Loan to value investment formula: LTV = (Loan Amount / Property Value) x 100.[5] Your max loan is LTV limit x lower of price or valuation.

Example: $1.2M condo, first investment (1 existing loan), 45% LTV. Max loan: $540,000. Down payment investor: $660,000 (55%), with min 10% cash ($120,000). Rest CPF.[1]

Determine property value/price.
Check your loan count for investor LTV limit.
Apply LTV cap based on tenure/age.
Subtract from 100% for downpayment.

Use Homejourney's eligibility calculator for instant results with Singpass integration.

Factors Affecting Your Investor LTV Limit

Several elements reduce your second property LTV:

Existing Loans: Each prior loan lowers LTV by 10-20%.[1][2]
Loan Tenure: Over 30 years (private) or 25 (HDB): -20% LTV.[1]
Age: Loan past 65th birthday: reduced LTV.[5]
Discounts/Rebates: Deducted from value, lowering effective LTV.[1]
Property Type: Shell companies: 15% max.[1]

Insider tip: Time your first property sale within 15 months if switching to HDB, but investors often stick to private for flexibility.[1]

HDB vs Bank Loans for Investment Properties

HDB loans offer 80% LTV but fixed 2.6% rates, lower for stability.[1] Bank loans cap at 75% but competitive SORA rates from DBS (1.09% top 2026).[6]

Aspect	HDB Loan (Investment)	Bank Loan (e.g., OCBC, UOB)
Max LTV (Second Property)	45% (aligned)	45%
Interest Rate	2.6% fixed	SORA + 0.5-1%
Tenure	25-35 years	Up to 35 years
Cash Down Min	5-20%	5-25%+

For floating rates suiting rentals, banks win.[6] Compare live rates on Homejourney bank rates.

The chart below shows recent interest rate trends in Singapore:

As seen, SORA stability favors investors timing loans now.

Real Singapore Investment Examples

Example 1: Second Condo in Tanjong Pagar
$1.5M purchase. 1 existing loan: 45% LTV = $675K loan. Downpayment: $825K (20% cash $300K, CPF $525K).[1] Monthly ~$3,500 at 2.5% SORA, rental yield 3.5% covers it. Search similar on Homejourney property search.

Example 2: Third HDB Resale in Punggol
$800K. 2+ loans: 35% LTV = $280K loan. Downpayment 65% ($520K, 25% cash).[2] Ideal for steady tenants near MRT.

Original insight: In 2026, District 15 condos offer best LTV investment property leverage with 4% yields. Check Projects Directory ">Homejourney projects.

TDSR and MSR for Property Investors

TDSR caps total debt at 55% gross income; MSR at 30% for HDB.[1][5] For investors, include all loans + rentals as income (80% credited).[7]

Example: $20K monthly income, TDSR $11K. Existing $4K mortgage + new $3K = ok. Homejourney calculator factors this automatically.

Stress test at 4% rate.[5]
Rental offsets boost capacity.

Read our Financing Multiple Investment Properties: Singapore Investor Guide | Homejourney ">Financing Multiple Properties Guide.

ABSD and Stamp Duties Impact on LTV

ABSD for second property: 17% for Singaporeans (2026 rates).[4] Not part of LTV but adds to cash needs. E.g., $1M second home: $170K ABSD + downpayment.

Details in LTV & ABSD Guide for Singapore Investment Properties | Homejourney ">LTV & ABSD Guide. Homejourney verifies duties for safe transactions.