In Singapore, the Loan-to-Value (LTV) ratio is the maximum property loan percentage a bank or HDB will lend you, expressed as a percentage of the property’s value or purchase price, whichever is lower.
It directly determines your down payment requirements, affects whether your loan is approved, and how much cash or CPF you need upfront, so understanding it is critical if you want to improve your home loan approval chances.
This guide focuses on What is Loan-to-Value LTV Ratio and Why It Matters: How to Improve Approval Chances for Singapore buyers and investors, and ties back to Homejourney’s broader mortgage education pillar: Loan-to-Value (LTV) Ratio in Singapore: Safe Borrowing with Homejourney Loan-to-Value (LTV) Ratio in Singapore: Homejourney’s Essential Guide for Safe B... .
What is LTV Ratio in Singapore? (Simple Definition + Formula)
In Singapore, the LTV ratio is defined by MAS as the maximum home loan amount you can borrow as a percentage of the property’s valuation or purchase price, whichever is lower.[5]
LTV formula:
LTV (%) = (Loan Amount ÷ Property Valuation or Purchase Price) × 100
For example, if you buy a resale HDB in Tampines for $650,000 and the bank valuation is $640,000, and your bank approves a loan of $480,000, your LTV is:
480,000 ÷ 640,000 × 100 = 75%
Take note: the bank or HDB always uses the lower of valuation or purchase price when calculating your maximum loan.[2]
Current LTV Limits in Singapore (2025–2026)
MAS sets the LTV limits to prevent over‑leveraging and keep the property market stable.[5]
1. HDB Concessionary Loan LTV (Latest Change)
For HDB concessionary loans, the maximum LTV is 75% as of 20 August 2024, meaning you must fund at least 25% down payment via CPF OA, cash, or a combination.[2]
- Max LTV: 75% (HDB loan)[2]
- Minimum down payment: 25% (0% mandatory cash – can be fully CPF if you have enough)[2]
- Interest rate: typically around 2.6% p.a. (0.1% above CPF OA rate)[2]
Example from the ground: For a 4-room HDB resale flat in Bishan priced at $850,000, a 75% LTV HDB loan lets you borrow up to $637,500. You must prepare $212,500 from CPF OA and/or cash for your down payment, plus Buyer’s Stamp Duty and legal fees.
2. Bank Home Loan LTV (HDB & Private)
For bank loans to individuals, the general maximum LTV is 75%, assuming you meet MAS criteria and loan tenure limits.[2][5]
- Max LTV for 1st housing loan: 75% or 55% (if tenure longer than limits or beyond age 65)[2]
- Minimum cash down payment: 5% if LTV 75%; 10% if LTV 55%[2]
- Remaining down payment (20–40%): cash and/or CPF OA[2]
Current MAS guidance also tightens LTV further if you already have existing housing loans.[5]
- 1st housing loan: up to 75% LTV, 5% cash minimum[2]
- 2nd housing loan: LTV typically capped at 45% or 25%, with at least 25% cash down payment[2]
- 3rd & subsequent loan: LTV may be 35% or 15%, with at least 25% cash down payment[2]
For non-individual borrowers and shell companies, MAS caps LTV at 15%.[5]
Why LTV Ratio Matters for Your Loan Approval
The LTV ratio Singapore rules are not just technical; they shape whether your purchase is realistic and whether the bank is comfortable lending to you.
1. LTV Determines How Much Cash/CPF You Need
A lower LTV automatically means a higher down payment requirement.
Example: A $1.2M city-fringe condo near Dakota MRT:
- At 75% LTV: loan up to $900,000; down payment $300,000 (min $60,000 cash, $240,000 cash/CPF)
- At 55% LTV (long tenure or older age): loan $660,000; down payment $540,000 (min $120,000 cash)
If your savings and CPF OA cannot meet the down payment, your loan approval may be capped at a lower quantum, or the application may fail.
2. LTV Works Together with TDSR and MSR
Besides LTV, banks must comply with MAS Total Debt Servicing Ratio (TDSR) and, for HDB and ECs, Mortgage Servicing Ratio (MSR) rules.[6]
- TDSR: Your total monthly debt (including housing loan) must not exceed 55% of gross monthly income.[6]
- MSR (for HDB/EC): Housing instalment cannot exceed 30% of gross monthly income.[6]
Even if you qualify for 75% LTV on paper, TDSR/MSR may force the bank to lend you less. This is why many buyers use Homejourney’s mortgage eligibility calculator first to estimate a safe borrowing range Mortgage Rates .
3. LTV Affects Your Risk in a Market Downturn
High LTV means less equity buffer. If you buy a condo in Pasir Ris at 75% LTV and the market dips 10–15%, your outstanding loan may be close to the property’s market value.
Lower LTV (say 50–60%) gives you more safety, which aligns with Homejourney’s focus on responsible, sustainable borrowing. A slightly lower LTV can also improve your approval odds, as banks see you as lower risk.
Key Factors That Affect Your LTV Limit
Even though MAS sets the LTV limits, banks are not obliged to give you the maximum.[2][5] They will assess your profile carefully.
1. Number of Existing Housing Loans
The more housing loans you already have, the lower your next LTV cap becomes.[2][5]
- No outstanding loan: up to 75% LTV (if tenure/age criteria met)[2]
- 1 outstanding loan: LTV can drop to 45% or 25%[2]
- 2 or more loans: LTV may fall to 35% or 15%[2]
Investors buying a second or third condo in areas like River Valley or Tanjong Pagar must be prepared for significantly higher cash outlay.
2. Loan Tenure and Age
MAS caps maximum loan tenures at 30 years for HDB and 35 years for non-HDB properties.[1][5]
- If the loan tenure exceeds 25 years for HDB or 30 years for private property, or
- If the loan period extends past the borrower’s 65th birthday,
the maximum LTV drops to 55% and minimum cash down payment rises to 10%.[1][2]
Example: A 45-year-old buying a freehold walk-up in Joo Chiat with a 30-year tenure will likely face a reduced LTV because the loan stretches beyond age 65.
3. Property Type, Lease, and Condition
Banks may apply more conservative LTVs for properties with:
