LTV Ratio Singapore: Limits, Calculations & Downpayment Guide | Homejourney
The Loan-to-Value (LTV) ratio is a critical regulation set by the Monetary Authority of Singapore (MAS) that determines the maximum property loan percentage you can borrow against a property's value. In Singapore, current LTV limits MAS cap first-time buyers at 75% for both HDB and bank loans, requiring a minimum 25% downpayment where 5% must be in cash[1][2][3].
This comprehensive pillar guide from Homejourney explains everything about LTV ratio Singapore, from calculations to real-world impacts on your home purchase. Whether you're a first-time HDB buyer or condo investor, understanding loan to value and down payment requirements ensures you avoid overleveraging in Singapore's competitive market. Homejourney prioritizes your safety with verified data and tools like our bank rates page for instant comparisons from DBS, OCBC, UOB, and more.
Table of Contents
- What is Loan-to-Value (LTV) Ratio?
- Current LTV Limits in Singapore (2026)
- How to Calculate Your LTV Ratio
- HDB Loans vs Bank Loans: LTV Differences
- Factors Affecting Your LTV Limit
- Real Singapore Examples: LTV in Action
- Downpayment Requirements and CPF Usage
- LTV with TDSR and MSR Rules
- LTV for Refinancing and Second Properties
- Practical Tips to Maximize Your LTV
- FAQ: LTV Ratio Singapore Common Questions
- Next Steps with Homejourney
What is Loan-to-Value (LTV) Ratio?
The LTV ratio Singapore measures the loan amount as a percentage of the property's value or purchase price, whichever is lower. Formula: LTV = (Loan Amount / Property Value) × 100%[2][5].
MAS introduced LTV limits to prevent overborrowing and maintain housing affordability amid rising prices. For instance, a 75% LTV means you borrow up to 75% of a $1 million condo, covering $750,000 with a loan while paying $250,000 downpayment[1][3].
Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator lets you input property details for instant LTV and affordability checks using Singpass for verified CPF data.
Why LTV Matters for Singapore Buyers
High LTV reduces your upfront cash needs but increases monthly repayments. In Singapore's market, where HDB BTO flats start at $300,000-$500,000 and condos at $1.5M+, grasping loan to value helps budget effectively[1].
Ignoring LTV can lead to rejected loans or forced sales during downturns. Homejourney verifies all data to build trust, ensuring you make confident decisions.
Current LTV Limits in Singapore (2026)
As of August 2024 cooling measures, MAS set both HDB concessionary loans and bank loans at a maximum 75% LTV for first-time buyers[1][2][3]. This tightened from HDB's prior 80% to curb speculation.
| Borrower Type | Max LTV (Standard) | Max LTV (Extended Tenure/Age >65) | Min Cash Downpayment |
|---|---|---|---|
| 1st Timer (No Loans) | 75% | 55% | 5% (75% LTV) |
| 2nd Property | 45% | 25% | 25% |
| 3rd+ Property | 35% | 15% | 25% |
Source: MAS guidelines[4][5]. Note: Shell companies limited to 15-40% LTV[6]. View live updates on Homejourney's bank rates page.
Recent Changes and Market Impact
Post-2024 measures, HDB loans dropped to 75% LTV, aligning with banks. This raised downpayments, cooling resale demand—e.g., HDB resale prices moderated by 5-10% in key areas like Toa Payoh[1].
For investors, lower LTV on second homes (45%) means more equity upfront, but Homejourney's tools help optimize via multi-bank comparisons.
How to Calculate Your LTV Ratio
Step 1: Determine property value (lower of purchase price or bank/HDB valuation). Step 2: Apply max LTV based on your profile. Step 3: Subtract loan from value for downpayment[2].
Example: $800,000 HDB resale, first-time buyer, bank loan. Max loan: 75% = $600,000. Downpayment: $200,000 (5% cash = $40,000; rest CPF/cash).
- Get Valuation: Use Homejourney's projects directory for comps.
- Check Profile: No prior loans? 75% max.
- Compute: Loan = Value × LTV. Use our calculator for precision.
LTV Calculation Table for Common Properties
| Property Value | Max Loan (75% LTV) | Downpayment (25%) | Min Cash (5%) |
|---|---|---|---|
| $500,000 (HDB) | $375,000 | $125,000 | $25,000 |
| $1,000,000 (Condo) | $750,000 | $250,000 | $50,000 |
| $2,000,000 (Landed) | $1,500,000 | $500,000 | $100,000 |
HDB Loans vs Bank Loans: LTV Differences
Both now at 75% max LTV, but HDB loans offer lower rates (around 2.6% pegged) with stricter eligibility (Singaporean couples)[1][3]. Bank loans from DBS, OCBC, UOB provide flexibility and potentially better rates—compare on https://www.homejourney.sg/bank-rates.
- HDB Loan: 75% LTV, 25% downpayment (staggered: 5% upfront, 20% at completion), CPF-friendly[1].
- Bank Loan: 75% LTV, min 5% cash downpayment, higher scrutiny on credit[2].
Insider tip: For HDB upgraders in mature estates like Bedok, banks often approve higher effective LTV via promotions. Homejourney connects you to HSBC, Standard Chartered, Maybank for best deals.
Factors Affecting Your LTV Limit
MAS adjusts LTV based on risk profiles[4][5]. Key factors:
- Existing Loans: 1st: 75%; 2nd: 45%; 3rd+: 35%[2][3].
- Age + Tenure: If age + tenure >65 or tenure >30yrs (HDB)/35yrs (private), drops to 55%/45%[1].
- Property Type: New launches based on price; resales on valuation (COV in cash)[3].
Original insight: In 2026, with SORA rates stabilizing, younger borrowers (under 35) maximize LTV by choosing 25-30 year tenures, saving on interest vs max 35 years.
Real Singapore Examples: LTV in Action
Case 1: First-time couple buying $450,000 Tampines HDB BTO. Valuation $450k, 75% LTV bank loan = $337,500 loan. Downpayment $112,500 (5% cash $22,500; CPF rest). Monthly ~$1,800 at 3% SORA[2].
Case 2: Investor with 1 loan buying $1.2M Orchard condo. Valuation $1.15M, 45% LTV = $517,500 loan. Downpayment $632,500 (25% cash min $287,500). Use Homejourney's property search for budget fits.
Real data: Recent Toa Payoh resale at $650k required $162k cash for 75% LTV, per HDB stats.
Downpayment Requirements and CPF Usage
For 75% LTV: 25% total downpayment, min 5% cash. Remaining 20% via CPF Ordinary Account (OA) + cash. CPF grant-eligible HDB buyers reduce effective downpayment[1].
Pro tip: Time CPF top-ups pre-purchase to boost OA for larger LTV utilization. Homejourney verifies CPF via Singpass for accurate projections.
LTV with TDSR and MSR Rules
LTV caps loan quantum; TDSR (60% of income for all debts) and MSR (30% for HDB) cap affordability[7]. Example: $10k monthly income, TDSR allows $6k debt—LTV loan must fit.
The chart below shows recent interest rate trends in Singapore:
As seen, SORA averaged 3.0% in late 2025, impacting repayments. Homejourney tracks live SORA for precise calculations.
LTV for Refinancing and Second Properties
Refinancing doesn't retrigger LTV limits if no cash-out, but new loans do[8]. Second properties: 45% LTV means higher equity—ideal for investors in areas like Punggol.
Homejourney simplifies refinancing: Compare DBS vs OCBC rates, apply multi-bank with one click via https://www.homejourney.sg/bank-rates.
Practical Tips to Maximize Your LTV
- Pay off small debts pre-application to boost TDSR headroom.
- Choose shorter tenure for higher effective LTV approval odds.
- Use Homejourney's eligibility calculator for Singpass-verified simulations.
- For HDB, check grants reducing downpayment needs.
- Compare bank packages—UOB often waives fees for high LTV.
Disclaimer: This is general advice; consult Homejourney mortgage brokers for personalized guidance. See related: 新加坡房贷如何运作完整指南：Homejourney权威解析 ">新加坡房贷如何运作完整指南.
FAQ: LTV Ratio Singapore Common Questions
What is the current LTV limit for first-time HDB buyers?
75% for both HDB and bank loans as of 2024, with 25% downpayment (5% cash min)[2][3].
Does LTV apply to refinancing?
No new LTV check for balance transfer refinancing without increasing principal[8].
Can I use CPF for the full downpayment?
No, min 5% cash for 75% LTV; rest CPF OA[1].
What if purchase price > valuation?
LTV on valuation; COV in cash[3].
How does age affect LTV?
If age + tenure >65, LTV drops to 55%[1].
Is LTV different for ECs or condos?
Same limits; ECs follow HDB MSR until 10 years[7].
Where to check latest LTV limits MAS?
MAS website or Homejourney's verified updates.
Next Steps with Homejourney
Ready to apply LTV knowledge? Start with our bank rates page to compare DBS, OCBC, UOB, HSBC rates. Calculate eligibility, apply via Singpass to multiple banks instantly. Search properties at https://www.homejourney.sg/search within your LTV budget.
Homejourney ensures a safe, transparent journey—your trusted partner for Singapore property financing. Connect with our brokers for free advice.
References
- Singapore Property Market Analysis 1 (2026)
- Singapore Property Market Analysis 2 (2026)
- Singapore Property Market Analysis 3 (2026)
- Singapore Property Market Analysis 5 (2026)
- Singapore Property Market Analysis 4 (2026)
- Singapore Property Market Analysis 6 (2026)
- Singapore Property Market Analysis 7 (2026)
- Singapore Property Market Analysis 8 (2026)
