LTV Ratio Singapore Explained: Limits & Why It Matters | Homejourney
The Loan-to-Value (LTV) ratio is the percentage of a property's value or purchase price (whichever is lower) that banks or HDB will lend you for your home loan in Singapore. It directly determines your down payment requirements, with current maximum LTV limits at 75% for both HDB concessionary loans and bank loans as of August 2024[1][2][3]. Understanding LTV is crucial because it affects how much cash or CPF you need upfront, helping first-time buyers and investors avoid over-leveraging while planning safely on platforms like Homejourney.
This cluster article dives deep into LTV ratio Singapore, loan to value limits set by MAS, and property loan percentage rules. It connects to Homejourney's pillar guide on Singapore home loans, offering tactical advice for calculating your borrowing power. At Homejourney, we prioritize your safety with verified data and tools like our bank rates page to compare DBS, OCBC, UOB, and more.
What is Loan-to-Value (LTV) Ratio?
The LTV ratio calculates as: LTV = (Loan Amount / Property Value or Purchase Price, whichever lower) × 100%[2]. For example, on a $1,000,000 condo valued at $1,000,000, a 75% LTV means you can borrow up to $750,000, requiring a 25% downpayment of $250,000[2].
In Singapore, the Monetary Authority of Singapore (MAS) sets these LTV limits to cool the property market and ensure affordability[4][5]. If you pay above valuation—like $1,200,000 for a $1,000,000 valuation—the extra $200,000 (Cash Over Valuation or COV) must be in cash, not financed[3]. Homejourney's mortgage calculator instantly factors in LTV for precise eligibility checks.
Current LTV Limits in Singapore (2026)
As of the latest cooling measures from 20 August 2024, both HDB concessionary loans and bank loans cap at 75% LTV for first-time buyers with no outstanding housing loans[1][2][3]. This means a minimum 25% downpayment, with at least 5% in cash (rest via CPF Ordinary Account or cash)[2].
| Housing Loans | LTV Limit | Minimum Cash Downpayment |
|---|---|---|
| 1st (No existing loans) | 75% or 55%* | 5% (75% LTV); 10% (55% LTV) |
| 2nd | 45% or 25%* | 25% |
| 3rd & onwards | 35% or 15%* | 25% |
*55%/25%/15% applies if loan tenure exceeds 30 years (private property) or 25 years (HDB), or extends beyond age 65[1][5]. For HDB resale, private owners must wait 15 months post-sale[1].
HDB vs Bank Loan LTV Differences
HDB loans (for BTO, SBF, resale) max at 75% LTV, with staggered downpayments: 5% upfront, 20% later[3]. Bank loans also 75% max, but banks like DBS or OCBC assess credit, income, and property details—they may offer less[2]. Use Homejourney to compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and more under these limits.
Why LTV Ratio Matters for Singapore Buyers
LTV limits protect against market bubbles by enforcing downpayment requirements, linking to TDSR (Total Debt Servicing Ratio, max 55%) and MSR (Mortgage Servicing Ratio, max 30% for HDB)[4][7]. High LTV means lower monthly payments but bigger upfront cash; low LTV builds equity faster but strains liquidity.
Real example: Buying a $600,000 HDB resale in Tampines. At 75% LTV ($450,000 loan), downpayment is $150,000 (min $30,000 cash + CPF). If second property, drops to 45% LTV ($270,000 loan), needing $330,000 down (min $150,000 cash)[2]. Insider tip: Factor CPF usage rules—only OA savings up to available balance after housing withdrawals.
View current rates from all major banks on Homejourney's bank rates page. Calculate affordability with our eligibility tool to see LTV impact instantly.
How to Calculate Your LTV and Plan Downpayment
- Determine property value: Use lower of purchase price or bank/HDB valuation.
- Apply LTV tier: First loan? Max 75%. Check tenure/age/existing loans.
- Compute downpayment: (100% - LTV) × Value. Min 5-25% cash.
- Add CPF/stamp duties: ABSD for investors; check MSR/TDSR.
- Use Homejourney tools: Auto-fill via Singpass on our loan application for multi-bank offers.
Example calc: $1.2M Punggol BTO, valued $1.1M. 75% LTV = $825,000 loan. Downpayment $275,000 ($55,000 cash min + CPF). If over 65+tenure>65, drops to 55% LTV.
Link to our pillar: For full home loan basics, see LTV Ratio Singapore: Limits, Down Payments & Why It Matters | Homejourney . Related: LTV Ratio Singapore: Limits, Bank Rates & Downpayment Guide | Homejourney .
Frequently Asked Questions: LTV Ratio Singapore
What is the current LTV limit for first-time HDB buyers?
75% for both HDB and bank loans since August 2024, requiring 25% downpayment (5% cash min)[3].
Does LTV apply to refinancing?
Yes, same limits based on existing loans count. Refinance via Homejourney for multi-bank comparisons and step-by-step guidance.
Can I use CPF for the full downpayment?
No—min cash portion (5-25%) required. Rest CPF OA. Verify balance on Homejourney's calculator.
How does LTV interact with TDSR?
LTV sets loan size; TDSR caps payments at 55% income. Both enforced by MAS[4].
When should I consult a broker?
For complex cases (multiple loans, investors). Connect with Homejourney Mortgage Brokers via bank-rates.
Disclaimer: This is general info; consult professionals. Rates/regulations per MAS as of 2026[5]. Homejourney verifies data for your trusted decisions.
Ready to apply? Use Homejourney's Singpass-integrated application at https://www.homejourney.sg/bank-rates—one click for offers from top banks. Search budget-friendly properties at https://www.homejourney.sg/search. Your safe property journey starts here.
