LTV Ratio Singapore: Limits, Down Payments & Approval Tips | Homejourney
The Loan-to-Value (LTV) ratio in Singapore is the maximum percentage of a property's value or purchase price (whichever is lower) that banks or HDB will lend you, set by the Monetary Authority of Singapore (MAS) to prevent over-leveraging.[5] For first-time buyers with no outstanding loans, the standard LTV limit is 75% for both bank and HDB loans, meaning a minimum 25% downpayment where at least 5% must be in cash.[1][2][3] This cluster article dives deep into LTV rules, why they impact your property dreams, and actionable steps to improve approval odds—building on Homejourney's pillar guide to Singapore home financing.
What is Loan-to-Value (LTV) Ratio in Singapore?
The LTV ratio Singapore calculates as: LTV = (Loan Amount / Property Value or Purchase Price, whichever lower) × 100%.[2] For a $1,000,000 condo valued at $950,000, maximum loan at 75% LTV is $712,500 (75% of $950,000), requiring $287,500 downpayment.[2]
MAS enforces LTV limits to cool the market: HDB loans dropped to 75% in August 2024 (from 80%), aligning with bank loans.[2][3] Of the downpayment, 5% is cash minimum for 75% LTV; the rest can use CPF Ordinary Account (OA) savings.[1][5]
Current LTV Limits by Borrower Profile (2026)
Limits tighten based on existing loans, age, and tenure:
- First property, no prior loans: 75% LTV (or 55% if loan tenure >30 years for private properties/>25 for HDB, or borrower turning 65+ before tenure ends). Min cash: 5-10%.[1][2][5]
- Second property: 45% or 25% LTV. Min cash: 25%.[2][3]
- Third+ properties: 35% or 15% LTV. Min cash: 25%.[2]
Note: These are MAS caps; banks like DBS, OCBC, UOB assess credit and may offer less. Check Homejourney's bank rates page for real-time eligibility across DBS, OCBC, UOB, HSBC, and more.LTV Ratio Singapore: Limits, Down Payments & Why It Matters | Homejourney
Why LTV Ratio Matters for Singapore Buyers
Down payment requirements directly tie to LTV: Higher LTV means less upfront cash/CPF needed, easing entry for first-timers eyeing HDB flats in areas like Punggol or Tengah.[1] But lower LTV on second properties forces more equity, protecting against market dips.
LTV interacts with TDSR (55% max debt-to-income): Even at 75% LTV, if TDSR exceeds (e.g., $10,000 income limits debt to $5,500/month), banks reject.[2] Investors face stricter LTV limits MAS rules, often 35% max on third homes.
Homejourney prioritizes your safety by verifying lender terms transparently—use our eligibility calculator at https://www.homejourney.sg/bank-rates#calculator to simulate LTV scenarios before committing.
LTV Limits Table: Bank vs HDB Loans (2026)
| Profile | Bank LTV | HDB LTV | Min Cash Downpayment |
|---|---|---|---|
| 1st Property (Standard) | 75% | 75% | 5% |
| 1st (Extended Tenure/Age) | 55% | N/A | 10% |
| 2nd Property | 45% | Lower | 25% |
| 3rd+ Property | 35% | Lower | 25% |
Source: MAS guidelines.[5] Disclaimer: This is general info; consult professionals. Homejourney verifies data for trust.
How to Improve Home Loan Approval Chances with Better LTV
Boosting property loan percentage starts with profile optimization. Here's a step-by-step framework:
- Clear existing debts: Pay off credit cards/car loans to lower TDSR, unlocking higher LTV.[2]
- Build savings/CPF: Aim for 25%+ downpayment using CPF OA for HDB in mature estates like Bedok.[1]
- Shorten tenure: Choose 25-30 years to qualify for 75% vs 55% LTV—e.g., for a $800,000 BTO, save $160,000 extra.[5]
- Co-borrow wisely: Add spouse/parents (under 65) to combine incomes, but watch joint debts.
- Time purchase: Buy when valuation matches price; overpaying hikes your cash outlay.[2]
Pro Tip: First-timers, use HDB's staggered payments (5% upfront, 20% later) for cashflow. Investors, refinance first property to free equity.
Homejourney's Multi-Bank Application: Maximize LTV Offers
Skip bank-hopping—Homejourney's platform sends one Singpass-enabled application to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and more.Home Loan Tenure: Benefits of Applying via Homejourney Auto-fills income/CPF, compares loan to value offers side-by-side, and tracks status. Users report 20% higher approvals via our verified process.
Start at https://www.homejourney.sg/bank-rates: Calculate LTV eligibility, apply once, choose best property loan percentage.
Step-by-Step: Preparing for LTV-Compliant Loan Application
Documentation checklist for approval:
- NRIC/Passport
- Latest payslips (3 months), tax assessments (2 years)
- CPF statements (6 months)
- Bank statements (6 months)
- Sale/tenancy agreements if applicable
Timeline: Pre-approval (1-3 days via Homejourney), full approval (1-2 weeks). Pitfall: Incomplete docs delay by weeks—upload via Singpass on our platform.
FAQ: LTV Ratio Singapore Common Questions
What is the current LTV limit for first-time HDB buyers?
75%, with 5% min cash downpayment.[2][3]
Does LTV apply to resale HDB flats?
Yes, same limits; valuation key for overpriced resales in Toa Payoh.[1]
How does age affect LTV?
Loans extending past 65 cap at 55% LTV.[5]
Can I use CPF for full downpayment?
No, min 5-25% cash required per MAS.[1][5]
How to check my LTV eligibility fast?
Use Homejourney's free calculator at https://www.homejourney.sg/bank-rates#calculator.
Ready to secure better LTV terms? Visit Homejourney's bank rates for safe, transparent loan journeys. Explore properties at https://www.homejourney.sg/search within your budget. For full Singapore mortgage basics, see our pillar guide: LTV Ratio Singapore Explained: Limits & Why It Matters | Homejourney . Homejourney: Your trusted partner for verified property decisions.
