LTV Ratio Singapore: Limits, Down Payments & Why It Matters | Homejourney
The Loan-to-Value (LTV) ratio is the maximum percentage of a property's value that banks or HDB will lend you, directly determining your down payment requirements in Singapore. Understanding LTV ratio Singapore rules from MAS is essential for first-time buyers, upgraders, and investors to avoid overleveraging and secure the best financing. This definitive Homejourney guide covers everything from current LTV limits to calculations, real examples, and how our platform simplifies your home loan journey with safety and transparency at its core.
Homejourney prioritizes your trust by verifying data from official sources like MAS and HDB, helping you make confident decisions. Whether you're exploring bank rates or using our eligibility calculator, we ensure a secure path to homeownership.
Table of Contents
- What is Loan-to-Value (LTV) Ratio?
- Current LTV Limits in Singapore (2026)
- HDB Loans vs Bank Loans: LTV Differences
- Key Factors Affecting Your LTV Limit
- How to Calculate LTV Ratio & Down Payments
- Real Singapore Examples: LTV in Action
- LTV with TDSR and MSR: Full Picture
- LTV for Refinancing & Second Properties
- How Homejourney Simplifies LTV & Loans
- FAQ: LTV Ratio Singapore Questions
What is Loan-to-Value (LTV) Ratio?
The LTV ratio Singapore measures the loan amount approved as a percentage of the property's purchase price or valuation, whichever is lower. Regulated by the Monetary Authority of Singapore (MAS), it caps property loan percentage to promote financial stability and prevent overborrowing[1][2][4].
For example, a 75% LTV means you borrow up to 75% of the property value, covering the rest with down payment via cash or CPF. This safeguard ensures buyers have skin in the game, reducing default risks in Singapore's high-cost market.
Homejourney's platform verifies these rules in real-time, linking LTV to your budget on our property search to match safe, affordable options.
Why LTV Matters for Singapore Buyers
LTV directly impacts your down payment requirements—higher LTV means less upfront cash. In 2026, with cooling measures tight, misunderstanding LTV can derail your purchase. It interacts with TDSR (55% cap) and MSR (30% for HDB), making holistic planning crucial[1][5].
As a first-time buyer eyeing a $500,000 HDB flat, knowing LTV helps you gauge CPF usage and cash needs accurately. Homejourney's tools, like our mortgage calculator at https://www.homejourney.sg/bank-rates#calculator, factor in LTV for instant insights.
Current LTV Limits in Singapore (2026)
MAS sets LTV limits MAS dynamically via cooling measures. As of August 2024, both HDB and bank loans cap at 75% for first-time buyers with no prior loans[1][2][6]. Earlier, HDB was 80% (down from 85% in 2022), but alignment promotes fairness[1].
These limits apply to new housing loans, using the lower of purchase price or bank valuation. Cash over valuation (COV) must be paid fully in cash[2].
LTV Limits Table: First-Time Buyers (No Existing Loans)
| Loan Type | Max LTV | Min Downpayment | Cash Portion |
|---|---|---|---|
| HDB Loan | 75% | 25% | 5% (staggered option) |
| Bank Loan | 75% | 25% | 5% |
Source: MAS guidelines[4][5]. Staggered downpayments for HDB: 5% at booking, 20% at key collection[1].
HDB Loans vs Bank Loans: LTV Differences
HDB loans offer 75% LTV for eligible resale/BTO flats, with lower rates but stricter eligibility (Singaporean core family nucleus). Bank loans also at 75% LTV provide flexibility, competitive rates from DBS, OCBC, UOB, and partners via Homejourney[1][2].
Bank loans require 5% cash downpayment minimum; the rest via CPF. HDB allows more CPF usage but caps at MSR 30%. Choose banks for better rates—compare live on https://www.homejourney.sg/bank-rates.
Pros & Cons Comparison
- HDB Loan: Higher stability, 75% LTV, but processing via HDB branches (e.g., Toa Payoh HQ).
- Bank Loan: Faster approval, multi-bank options via Homejourney, same 75% LTV but potential for rebates.
- Insider tip: Banks like HSBC offer promo cashback; track via Homejourney for safety.
Related: LTV Ratio Singapore: Limits, Bank Rates & Downpayment Guide | Homejourney ">LTV Ratio Singapore: Limits, Bank Rates & Downpayment Guide.
Key Factors Affecting Your LTV Limit
Several elements lower your loan to value cap beyond the 75% base[1][2].
- Existing Loans: 1 prior loan = 45%; 2+ = 35%[1].
- Age/Tenure: If age + tenure >65 or tenure >30yrs (HDB)/35yrs (private), drops to 55%[1][2].
- Property Lease: <30yrs lease = no CPF, 60% LTV possible[2].
- Non-Individuals (e.g., Companies): 40-60% LTV[3].
LTV Limits by Existing Loans Table
| Outstanding Loans | Max LTV (Bank/HDB) |
|---|---|
| 0 | 75% |
| 1 | 45% |
| 2 or more | 35% |
Discounts/rebates (e.g., legal fees) are deducted from valuation, effectively raising your downpayment[1].
How to Calculate LTV Ratio & Down Payments
Formula: LTV = (Loan Amount / Property Value) x 100%. Max loan = LTV limit x lower of price/valuation[2].
Step-by-Step Calculation:
- Determine property value (e.g., $600,000 valuation).
- Apply LTV cap (75% = $450,000 max loan).
- Downpayment = $150,000 (25%); min 5% cash ($30,000).
- Adjust for factors (e.g., age drops to 55% = $330,000 loan).
Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator for Singpass-integrated precision.
Real Singapore Examples: LTV in Action
Example 1: First-Time HDB Buyer. $550,000 Ang Mo Kio resale flat, valuation $540,000. 75% LTV = $405,000 loan. Downpayment $135,000 (5% cash $27,000 + CPF). Insider tip: Factor ABSD $0 for citizens[2].
Example 2: Upgrader with 1 Loan. $1.2M private condo in Punggol, 45% LTV = $540,000 loan. Downpayment $660,000 (higher cash if lease <60yrs). Use projects directory for valuations.
Example 3: Investor (2+ Loans). 35% LTV on $800,000 OCR flat = $280,000 loan. Heavy cash needed; compare rates on Homejourney.
LTV with TDSR and MSR: The Full Financing Framework
LTV sets loan size; TDSR (≤55% gross income) and MSR (≤30% for HDB) cap monthly payments[5][6]. E.g., $10,000 income: TDSR allows $5,500 debt; MSR $3,000 housing.
Banks stress-test at 4% rate. Homejourney's eligibility tool integrates all for accurate borrowing power.
Interest Rate Context for LTV Planning
SORA-based rates affect monthly repayments within LTV loans. Most banks peg to 3M SORA + margin.
The chart below shows recent interest rate trends in Singapore:
As seen, SORA stability aids predictable payments. Track live on Homejourney bank rates from DBS, OCBC, UOB, HSBC, etc.
LTV for Refinancing & Second Properties
Refinancing revalues property; new LTV applies (e.g., 75% if no prior, but tenure cap). Investors face 45%/35%[1]. Homejourney streamlines with multi-bank submissions via Singpass.
Tip: Refinance if rates drop (check chart); link to Home Loan Tenure: Benefits of Applying via Homejourney ">Home Loan Tenure Benefits.
Post-purchase, maintain value with services like aircon services.
How Homejourney Simplifies LTV & Loans
Homejourney builds trust with verified data, Singpass/MyInfo for instant apps, and multi-bank comparisons (DBS to Maybank). Calculate LTV-eligible loans, apply once, get offers fast.
- Compare rates: https://www.homejourney.sg/bank-rates
- Eligibility calculator
- Mortgage brokers for personalized LTV advice
- Safe, transparent process prioritizing your security
Disclaimer: This is general info; consult professionals for advice. Data current Feb 2026[4].
FAQ: LTV Ratio Singapore Questions
What is the current LTV ratio Singapore limit? 75% for both HDB and bank loans for first-timers[2].
How much down payment for 75% LTV? 25%, with 5% min cash[1].
Does LTV apply to resale HDB? Yes, based on valuation; COV in cash[2].
Can I use CPF for LTV downpayment? Yes, except min cash and short-lease rules[1].
What if I have an existing loan? LTV drops to 45% or 35%[1].
How does LTV affect refinancing? New valuation applies; use Homejourney for rates.
LTV limits MAS for investors? Stricter: 45%/35% based on priors[3].
Where to check bank LTV offers? Homejourney's bank-rates page.
Ready to apply LTV knowledge? Start with Homejourney's secure tools for a trusted journey to your dream home. Compare rates, calculate eligibility, and search properties today.
