LTV Ratio in Singapore: Key FAQs Homejourney Buyers Must Know

The Loan-to-Value (LTV) ratioproperty loan percentage a bank or HDB will lend you, expressed as a percentage of your property’s value or purchase price, whichever is lower.

It matters because your LTV ratio directly determines your down payment requirements, how much cash you need upfront, and whether you can safely afford your home without over-stretching your finances.

For first-time buyers in Singapore, understanding LTV ratio Singapore rules is just as important as comparing interest rates. Homejourney’s mortgage tools and our main pillar guide Loan-to-Value (LTV) Ratio in Singapore: Homejourney’s Essential Guide for Safe B... are designed to help you apply these rules safely before you commit to any Option to Purchase (OTP).

What is Loan-to-Value (LTV) Ratio in Singapore?

The loan-to-value ratio is calculated as:

LTV = (Home loan amount ÷ Property value) × 100%.[2]

In Singapore, regulators like the Monetary Authority of Singapore (MAS) set LTV limits to prevent over-borrowing and keep the property market stable.[3][5] These limits depend on:

Whether you take an HDB loan or a bank loan[2][5]
How many existing housing loans you already have[1][2]
Your loan tenure and age[2][5]
Whether you’re buying as an individual or a company[1][2]

As someone who has helped many buyers in areas like Punggol, Sengkang and Jurong, I see LTV affect real decisions all the time. A couple buying a $650,000 4-room resale flat in Punggol, for example, will have a very different upfront cash/CPF requirement depending on whether they use an HDB loan or a bank loan, even though the flat is the same.

Current LTV Limits and Down Payment Requirements

Official guidelines are regularly updated, so you should always cross-check with MAS and HDB, but as of the latest rules:[2][3][5]

1. HDB Concessionary Loan – Latest LTV Limits

The maximum LTV limit for an HDB Concessionary Loan is 75% (revised on 20 August 2024).[2] This means:

You can borrow up to 75% of the lower of the purchase price or valuation[2]
You must pay at least 25% down payment, fully by CPF OA, cash, or a mix of both[2]
There is no mandatory cash portion for HDB loans if your CPF is sufficient[2]

Example (HDB loan):
A $500,000 4-room HDB resale flat in Woodlands:

Maximum HDB loan (75%): $375,000
Minimum down payment (25%): $125,000 (CPF OA and/or cash)

Many young couples around Woodlands MRT or Marsiling MRT prefer HDB loans partly because they can use more CPF and keep cash for renovation, baby expenses, or buffer savings.

2. Bank Housing Loans – Standard LTV Limits

For bank loans (e.g. DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Citibank), MAS guidelines generally cap LTV at:[2][5]

75% LTV for first housing loan, if tenure ≤30 years (HDB) or ≤35 years (private), and loan does not extend past age 65[2][5]
55% LTV if tenure is longer or extends beyond age 65[1][2][5]
Lower LTV (45%, 35%, 25% or 15%) if you already have 1 or more outstanding housing loans[1][2]

There are also minimum cash down payment rules for bank loans:[2]

If LTV is 75%: at least 5% cash, remaining 20% from CPF/cash
If LTV is 55%: at least 10% cash, remaining 35% from CPF/cash

Example (bank loan, first property):
Buying a $1,000,000 new launch condo in Sengkang:

Max bank loan at 75% LTV: $750,000
Down payment 25%: $250,000
Of this $250,000, minimum $50,000 must be cash, rest can be CPF OA

This is why you often hear agents say, “For a $1 million condo, be ready with at least $50k cash and another $200k in CPF/cash.” It is simply applying MAS LTV and down payment rules.

3. How Multiple Properties Affect Your LTV

If you already own properties, your LTV limits drop for each subsequent housing loan:[1][2]

1st housing loan: up to 75% (or 55% if tenure stretched)[2]
2nd housing loan: LTV drops to 45% or 25%[2]
3rd and subsequent: LTV may fall to 35% or 15%[2]

This is crucial for investors buying, for example, a second condo in Tampines or Jurong for rental – the cash and CPF required will be far higher due to lower LTV and higher Additional Buyer’s Stamp Duty (ABSD) under IRAS rules.[6]

How LTV is Calculated in Real-Life Singapore Scenarios

To safely plan your purchase, you need to understand two practical points:

LTV is based on the lower of purchase price or valuation[2]
It interacts with TDSR and MSR affordability rules[2][3]

Purchase Price vs Valuation: Who Wins?

When you buy a resale flat or condo, the bank or HDB will conduct a valuation. If you overpay compared to valuation, the extra amount is called cash over valuation (COV) for HDB, and you must cover it fully in cash (not CPF) for the difference beyond valuation.

Example:
Resale HDB in Toa Payoh:

Agreed price: $700,000
HDB valuation: $660,000
HDB loan at 75%: 75% × $660,000 = $495,000[2]
Difference ($40,000) is COV – must be paid in cash

So even though LTV sounds like a simple percentage, in a hot estate like Toa Payoh or Queenstown where valuations can be tight, the actual cash you need may be higher than you expect.

TDSR, MSR and Why LTV Alone Isn’t Enough

MAS also imposes:

Total Debt Servicing Ratio (TDSR) – monthly debt obligations must not exceed 55% of gross monthly income[2][3]
Mortgage Servicing Ratio (MSR) – for HDB and EC buyers, mortgage instalments capped at 30% of gross monthly income[3]

Even if your LTV limit allows you to borrow 75%, you may not qualify if your TDSR or MSR is breached. For example, a buyer working in Raffles Place with $6,000 income and high car loan repayments may only qualify for a lower loan, effectively reducing their usable LTV.

This is why Homejourney strongly recommends using our Mortgage Eligibility Calculator on the bank rates page Bank Rates and Mortgage Rates before placing any OTP.

Why LTV Ratio Matters for Safe Borrowing

For Homejourney users, the LTV ratio is more than a technical rule – it is a risk control tool designed to keep your long-term finances safe. It affects: