LTV Ratio Singapore: Limits, Calculations & Down Payments Explained | Homejourney
The LTV ratio Singapore (Loan-to-Value ratio) determines how much you can borrow for property purchases, directly impacting your down payment requirements and property loan percentage. Set by the Monetary Authority of Singapore (MAS), current LTV limits MAS cap HDB loans at 75% and bank loans at 75% as of August 2024, ensuring borrowers avoid over-leveraging in Singapore's competitive market.
This definitive Homejourney guide breaks down loan to value rules, calculations, HDB vs bank differences, and practical tips for first-time buyers, upgraders, and investors. Use our bank rates page to compare DBS, OCBC, UOB rates instantly while factoring in LTV.
What is LTV Ratio? The Complete Definition
The Loan-to-Value (LTV) ratio is the percentage of a property's value or purchase price (whichever is lower) that a lender allows you to borrow. For example, a 75% LTV means you finance 75% via loan and cover 25% down payment in cash or CPF.
MAS introduced LTV limits to cool property speculation and promote affordability, especially amid rising prices in areas like Punggol or Tengah BTO launches.[1][2] At Homejourney, we prioritize transparency—our mortgage calculator factors LTV instantly using Singpass for accurate eligibility.
LTV applies to all residential properties: HDB flats, condos, and private homes. It's calculated on valuation for resales (COV in cash) or purchase price for new launches.[2]
Why LTV Matters for Singapore Buyers
Higher LTV lowers your upfront cash needs but increases monthly repayments under TDSR/MSR. For first-timers eyeing a $500,000 HDB resale, 75% LTV means $375,000 loan—crucial for budgeting. Homejourney verifies data from official sources like HDB/URA for trusted decisions.[1]
Current LTV Limits in Singapore (2026 Update)
As of August 20, 2024, MAS tightened rules: both HDB and bank loans cap at 75% LTV for first-time buyers with no outstanding loans.[2][8] This offsets grants but ensures stability amid 3M SORA fluctuations.
| Borrower Profile | Max LTV (HDB Loan) | Max LTV (Bank Loan) |
|---|---|---|
| No existing loans | 75% | 75% |
| 1 existing loan | 45% | 45% |
| 2+ existing loans | 35% | 35% |
| Loan tenure >30yrs (private) or >25yrs (HDB), or age+tenure>65 | 55% | 55% |
Source: MAS guidelines[4][5]. Lower LTV for investors curbs speculation. Check Homejourney bank rates for partners like DBS (fixed rates ~2.5%) vs OCBC SORA pegs.
HDB Loans vs Bank Loans: LTV Comparison
HDB loans (75% LTV) suit flats under $1M with stable 2.6% rates but stricter MSR (30% income).[1] Bank loans (75% LTV) offer flexibility for condos, better for high earners under TDSR (55%).
- HDB Loan: 75% max, 20% downpayment (5% cash upfront, rest CPF/cash staggered).[2]
- Bank Loan: 75% max, 25% downpayment (min 5% cash).[1]
- Switching? Banks competitive post-ABL; compare on Homejourney.
Homejourney's multi-bank submission lets you apply to DBS, UOCB, UOB via one form—Singpass auto-fills CPF data for speed.
When to Choose Each
| Factor | HDB Loan | Bank Loan |
|---|---|---|
| LTV Limit | 75% | 75% |
| Interest Rate | ~2.6% fixed | SORA + margin (~3% variable) |
| Eligibility | HDB flats only | All properties |
Key Factors Affecting Your LTV Limit
LTV isn't fixed—MAS adjusts based on profile.[5]
- Existing Loans: 0 loans=75%; 1=45%; 2+=35%.[1][2]
- Age/Tenure: If age+tenure>65 or tenure>30yrs (private)/25yrs (HDB), drops to 55%.[5]
- Property Lease: <30yrs lease=lower LTV (e.g., 60%).[2]
- Buyer Type: Shell companies=15-40%.[3]
Insider tip: For Tengah BTO (99yr lease), max LTV applies; older Ang Mo Kio resales may hit tenure caps. Use Homejourney's calculator to simulate.
How to Calculate LTV Ratio: Step-by-Step
Formula: LTV = (Loan Amount / Property Value or Price) x 100
- Determine value: Lower of purchase price or bank/HDB valuation.
- Apply LTV cap based on profile (e.g., 75%).
- Loan = Capped LTV x Value.
- Downpayment = Value - Loan (cash min 5%).
Example: $600k Punggol resale, valued $580k, first buyer. LTV 75% on $580k = $435k loan, $145k downpayment ($29k cash min).[2]
LTV Calculator Table
| Property Price | 75% LTV Loan | 25% Downpayment | Min Cash (5%) |
|---|---|---|---|
| $500,000 | $375,000 | $125,000 | $25,000 |
| $800,000 | $600,000 | $200,000 | $40,000 |
| $1,200,000 | $900,000 | $300,000 | $60,000 |
Try it live on Homejourney.
Down Payment Requirements & CPF Usage Rules
25% downpayment for 75% LTV: 5% cash upfront, rest CPF OA + cash. HDB: Staggered (5% now, 15-20% at key dates).[1] CPF accrual +1% interest required.
- First-timer: Max CPF usage if OA sufficient.
- ABSD payers: More cash needed post-LTV.
Homejourney integrates CPF data via Singpass for precise calculations—safer than manual errors.
LTV Interacts with TDSR and MSR
LTV sets loan size; TDSR (55% total debt/income) and MSR (30% for HDB) cap affordability at 3.5% stress rate.[8] Example: $10k income = $3k HDB MSR max.
SORA impacts: Banks peg to 3M/6M SORA (~2.8% Feb 2026). The chart below shows recent interest rate trends in Singapore:
As seen, SORA rose 0.5% in 6m—factor into LTV planning. Track live on Homejourney.房贷如何运作：银行利率比较 | Homejourney新加坡指南
Real-World Singapore LTV Examples
Case 1: First-timer buys $550k Sengkang resale (valued $540k). 75% LTV = $405k loan, $135k down ($27k cash). Uses CPF $100k + cash.
Case 2: Upgrader with 1 loan eyes $900k EC. 45% LTV = $405k loan, $495k down—challenging without equity. Refinance first via Homejourney.
Investor tip: For 2nd property, 35% LTV means hefty cash; pair with Homejourney property search for budget fits.[2]
LTV Rules for Refinancing Properties
Refinancing retains original LTV tier but new loan can't exceed property value. No cash downpayment if equity covers, but TDSR applies. Ideal if SORA drops—compare DBS/HSBC on Homejourney.
- Step 1: Check current LTV via bank statement.
- Step 2: Use multi-bank apply.
- Save 0.2-0.5% p.a. with brokers.
5 Common LTV Mistakes Singapore Buyers Make
- Ignoring tenure caps: 55yr-old taking 25yr loan hits age limit.
- Forgetting 5% cash: CPF alone insufficient.
- Overlooking COV: Pay excess cash on resales.
- Not stress-testing TDSR: LTV ok, but repayments exceed 55%.
- Skipping comparisons: HDB vs bank rates vary; use Homejourney.
Disclaimer: This is general info; consult advisors. Homejourney verifies data for safety.
FAQ: LTV Ratio Singapore Common Questions
What is the current LTV limit in Singapore?
75% for first HDB/bank loans (no existing loans).[2]
How much downpayment for 75% LTV?
25%, with min 5% cash.[1]
Does LTV apply to refinancing?
Yes, based on current tier; new loan ≤ value.[6]
HDB vs bank LTV difference?
Both 75% now; HDB for flats only.[2]
Can CPF cover full downpayment?
No, min 5% cash required.[1]
What if property valuation lower than price?
LTV on valuation; COV in cash.[2]
LTV for investors with 2 loans?
35%.[1]
Ready to act? Visit Homejourney bank rates to calculate LTV, compare DBS/OCBC/UOB, and apply securely with Singpass. Our brokers guide you safely—prioritizing your trust every step. Explore properties within budget next.新加坡房贷如何运作完整指南：Homejourney权威手册2026
References
- Singapore Property Market Analysis 1 (2026)
- Singapore Property Market Analysis 2 (2026)
- Singapore Property Market Analysis 8 (2026)
- Singapore Property Market Analysis 4 (2026)
- Singapore Property Market Analysis 5 (2026)
- Singapore Property Market Analysis 3 (2026)
- Singapore Property Market Analysis 6 (2026)
