LTV Ratio Singapore: Limits, Calculations & Homejourney Guide
The definitive pillar guide to Loan-to-Value (LTV) ratio in Singapore – what it means, current limits, calculations, and why it shapes your home buying journey. Powered by Homejourney for trusted, verified property financing insights.
Executive Summary: Mastering LTV Ratio Singapore for Smarter Borrowing
The LTV ratio Singapore determines how much you can borrow against a property's value, directly impacting your down payment requirements and property loan percentage. Set by the Monetary Authority of Singapore (MAS), current LTV limits stand at 75% for first-time bank loans and 75% for HDB concessionary loans as of August 2024[1][2][4]. This guide breaks down LTV limits MAS, real examples, and Homejourney tools to calculate your eligibility securely.
Whether you're a first-time HDB buyer in Tampines or upgrading to a condo in Orchard, understanding LTV prevents overleveraging. Homejourney prioritizes your safety with transparent comparisons from DBS, OCBC, UOB, and more at https://www.homejourney.sg/bank-rates. Expect practical calculators, insider tips, and FAQs for confident decisions.
Table of Contents
- What is Loan-to-Value (LTV) Ratio?
- Why LTV Ratio Matters in Singapore
- Current LTV Limits in Singapore (2026)
- How to Calculate LTV Ratio
- HDB Loans vs Bank Loans: LTV Differences
- Factors Affecting Your LTV Limit
- Real Singapore Examples & Calculations
- LTV with TDSR and MSR Explained
- LTV for Refinancing and Second Properties
- Homejourney Tools for LTV Mastery
- Frequently Asked Questions
What is Loan-to-Value (LTV) Ratio?
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. Formula: LTV = (Loan Amount / Property Value) × 100%[2]. For a $1,000,000 condo, a 75% LTV means you can borrow up to $750,000, covering 75% property loan percentage[2].
In Singapore, MAS regulates LTV via Notice 825 to curb speculation and ensure financial stability[5][6]. It's not just a number – it dictates your down payment requirements, with minimum 5-25% cash component depending on loan type[1][3]. Homejourney verifies these rules daily for your trust.
Key Insight: LTV applies to the lower of purchase price or valuation. Buying a $1.2M resale flat valued at $1M? Max loan is based on $1M[2].
LTV vs Other Ratios
- LTV: Loan vs Property Value – focuses on property risk.
- TDSR: Total debt (including loans, credit cards) ≤60% of income.
- MSR: HDB-specific, housing commitments ≤30% income.
Master LTV first via Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator.
Why LTV Ratio Matters in Singapore
LTV ratio Singapore protects buyers from debt bubbles, as seen in past cooling measures. Post-2022 tightening, HDB LTV dropped from 85% to 80%, then 75% in 2024 amid rising prices[1][2][4]. It forces skin-in-the-game via downpayments, reducing defaults.
For first-timers, high LTV (75%) eases entry into HDBs like those in Punggol. Investors face 45% or lower for second properties, curbing speculation[3]. Ties directly to CPF usage – up to 20% of downpayment from OA savings[1].
Insider Tip: In hot markets like Bedok, low valuations hit LTV hard. Use Homejourney's Projects Directory for verified project data to predict valuations accurately.
Current LTV Limits in Singapore (2026)
MAS rules as of 2026 (post-2024 cooling): Bank loans max 75% for first-timers; HDB at 75%[1][2][4]. Limits tier by loans owned, tenure, age.
| Housing Loans | Bank LTV Limit | HDB LTV Limit | Min Cash Downpayment |
|---|---|---|---|
| 1st (None outstanding) | 75% or 55%* | 75% | 5% (75%); 10% (55%) |
| 2nd (1 outstanding) | 45% or 25%* | Lower per HDB rules | 25% |
| 3rd+ (2+ outstanding) | 35% or 15%* | N/A typically | 25% |
*55%/25%/15% if tenure >30yrs (private)/25yrs (HDB) or age+tenure >65yrs[1][2][3]. Shell companies: 15%[1].
Staggered downpayment option: 5% upfront, 15-20% at completion[1].
Recent Changes Table
| Date | Change | Impact |
|---|---|---|
| Dec 2021 | HDB 90% → 85% | +5% downpayment |
| Sep 2022 | HDB 85% → 80% | +5% more |
| Aug 2024 | HDB 80% → 75% | Min 25% downpayment[2][4] |
How to Calculate LTV Ratio
Step-by-step: 1) Get property value/purchase price (lower one). 2) Determine max LTV from table. 3) Loan = Value × LTV%. 4) Downpayment = Value - Loan.
- Example 1: $800,000 BTO HDB, first-timer bank loan. Max 75% LTV → Loan $600,000. Downpayment $200,000 (5%/$40k cash + 20%/$160k CPF/cash).
- Example 2: $1.5M condo, 40yo, 35yr tenure (>30yr) → 55% LTV → Loan $825,000. Downpayment $675,000 (10% cash min).
Use Homejourney's free calculator: Input price, age, loans at https://www.homejourney.sg/bank-rates#calculator for instant results with Singpass integration.
HDB Loans vs Bank Loans: LTV Differences
HDB loans offer 75% LTV but fixed 2.6% rates, stricter MSR (30% income)[1]. Bank loans: Up to 75% LTV, variable SORA rates (currently ~3%), more flexible but TDSR 60%[3].
- HDB Pros: Higher LTV historically, CPF grants offset reductions[8].
- Bank Pros: Competitive rates from DBS/OCBC; Homejourney compares all.
For resale HDB in Yishun ($600k), HDB loan: $450k (75%). Bank: Same, but check https://www.homejourney.sg/bank-rates for best offers.
Factors Affecting Your LTV Limit
Beyond basics:
- Outstanding Loans: Drops sharply – 2nd property 45%[1][3].
- Age/Tenure: If age+tenure >65 or >30/25yrs, lower LTV[4]. E.g., 55yo, 25yr loan for HDB = OK; 26yr = 55%.
- Property Type: New launches use purchase price[4].
- Cooling Measures: ABSD/SSD indirectly hike effective downpayment.
Pro Tip: Clear loans 15 months pre-buy to reset to 75%[1]. Homejourney's Mortgage Amortization Schedule Singapore: Homejourney Benefits shows payoff timelines.
Real Singapore Examples & Calculations
Case 1: First-Time HDB (Punggol BTO, $500k, 30yo). 75% LTV bank: Loan $375k. Down: $125k (5% $25k cash). Monthly ~$1,800 at 3% SORA (30yrs).
Case 2: Upgrade Condo (Tampines, $1.2M, 45yo, 1 existing loan). 45% LTV: Loan $540k. Down: $660k (25% $300k cash).
Case 3: Investor (Orchard freehold, $3M, 2 loans). 35% LTV: Loan $1.05M. Down: $1.95M (25% cash).
Verify budgets on Homejourney Property Search – filter by LTV-eligible prices.
LTV with TDSR and MSR Explained
LTV sets loan size; TDSR/MSR caps affordability. TDSR: All debts ≤60% income[5]. MSR: HDB housing ≤30%[1]. E.g., $10k monthly income: MSR $3k housing; TDSR $6k total debt.
Often TDSR binds before LTV. Homejourney calculator factors all for accurate borrowing power.
LTV for Refinancing and Second Properties
Refinance treated as new loan – same LTV tiers[3]. E.g., existing 80% LTV HDB? Refi to bank at 75% max, but valuation drop hurts. Use Homejourney for multi-bank quotes via one Singpass app.
Second homes: 45% LTV + ABSD 17% (Singaporean)[4]. Time sales strategically.
Link: See 房贷如何运作：银行利率比较 | Homejourney新加坡指南 for rates.
Homejourney Tools for LTV Mastery
Homejourney builds trust with verified tools:
- Compare DBS, OCBC, UOB, HSBC rates: https://www.homejourney.sg/bank-rates.
- Instant calculator with Singpass: Auto-fills CPF/income.
- One-click multi-bank apps: Get offers fast.
- Refi guide: Step-by-step with LTV checks.
Post-purchase: Aircon Services for maintenance. Search properties: https://www.homejourney.sg/search.
Disclaimer: Not financial advice. Consult professionals; rules per MAS Notice 825[6]. Homejourney verifies data for safety.
Frequently Asked Questions
What is the current LTV ratio Singapore limit for first-time buyers?
75% for bank loans, 75% HDB (Aug 2024)[2][4]. Min 5% cash downpayment.
How much downpayment for 75% LTV?
25%: 5% cash, 20% CPF/cash[1]. Staggered: 5% now, rest later.
Does LTV apply to resale HDB flats?
Yes, based on lower of price/valuation. E.g., $700k resale valued $680k → 75% of $680k[2].
Can I get over 75% LTV?
No, MAS cap. HDB was 90% pre-2021, now 75%[1].
What if my loan tenure exceeds 30 years?
LTV drops to 55%/25% etc.[3]. Max tenure: 30yrs HDB, 35yrs private.
How to check my LTV eligibility?
Use Homejourney calculator at https://www.homejourney.sg/bank-rates#calculator with Singpass.
LTV for foreigners?
Lower: Often 60% or less + higher ABSD. Check MAS[5].
Next Steps with Homejourney
1. Calculate LTV at https://www.homejourney.sg/bank-rates#calculator.
2. Compare rates from 10+ banks.
3. Apply via Singpass – safe, verified.
4. Search LTV-fit properties: https://www.homejourney.sg/search.
Homejourney: Your safe partner for transparent property journeys.
References
- Singapore Property Market Analysis 1 (2026)
- Singapore Property Market Analysis 2 (2026)
- Singapore Property Market Analysis 4 (2026)
- Singapore Property Market Analysis 5 (2026)
- Singapore Property Market Analysis 6 (2026)
- Singapore Property Market Analysis 3 (2026)
- Singapore Property Market Analysis 8 (2026)
