LTV Ratio Singapore: Limits, Downpayment & Approval Tips | Homejourney

The Loan-to-Value (LTV) ratio in Singapore is the percentage of a property's value or purchase price (whichever is lower) that banks or HDB can lend you, set by the Monetary Authority of Singapore (MAS) to prevent over-leveraging.[1][2][4]

For first-time buyers, the maximum LTV ratio Singapore is typically 75% for bank loans and 75% for HDB concessionary loans as of August 2024, meaning a minimum 25% downpayment.[1][2][3] This directly impacts your down payment requirements and property loan percentage. Homejourney simplifies this with our eligibility calculator at https://www.homejourney.sg/bank-rates#calculator, helping you verify affordability securely via Singpass.

Why LTV Ratio Matters for Singapore Property Buyers

Understanding loan to value and LTV limits MAS is crucial because it determines how much cash or CPF you need upfront. A higher LTV means less downpayment, making homes more accessible, but MAS tightens limits during market cooling—recently dropping HDB LTV to 75%.[2]

For example, on a $1 million condo valued at $950,000, a 75% LTV bank loan caps at $712,500 ($950,000 x 75%), requiring $237,500 downpayment (25%), with at least 5% in cash.[1][2] This connects to our pillar guide on 新加坡房贷如何运作完整指南：Homejourney权威解析 ">Singapore Home Loans Complete Guide, covering full financing strategies.

Homejourney prioritizes your safety by verifying data from official MAS guidelines, ensuring transparent decisions in a trusted environment.

Current LTV Limits in Singapore (2026)

MAS sets LTV ratio Singapore based on borrower profile, property type, and existing loans. Here's the breakdown for individual borrowers:

Property Loans	Max LTV (Bank)	Max LTV (HDB)	Min Cash Downpayment
1st Property	75% or 55%*	75%	5% (75% LTV); 10% (55% LTV)
2nd Property	45% or 25%*	N/A	25%
3rd & Onwards	35% or 15%*	N/A	25%

*55%/25%/15% applies if loan tenure >30 years (private) or >25 years (HDB), or extends past age 65.[1][2][4] Shell companies are capped at 15% LTV.[4]

For HDB resale like a 4-room flat at $600,000 in Tampines, a first-time buyer gets 75% HDB loan ($450,000), with 25% downpayment fully via CPF OA—no mandatory cash.[2]

How to Calculate Your LTV Ratio

The formula is simple: LTV = (Loan Amount / Lower of Purchase Price or Valuation) x 100%.[2]

Example: Buying a $1.2M Punggol BTO at $1M valuation. Max bank LTV 75% = $750,000 loan. Downpayment: $450,000 ($200,000 cash min 5% of $1.2M purchase + CPF/cash).

Check valuation: Use Homejourney's tools or bank appraisers—key for overpriced deals.
Apply LTV cap: Multiply lower value by max LTV from table.
Add cash portion: 5-25% of purchase price, rest CPF OA.
Factor TDSR: Loan capped at 55% of income (e.g., $10K income = $5.5K max debt).[5][6]

Test scenarios on Homejourney at https://www.homejourney.sg/bank-rates.

Step-by-Step: How to Improve LTV Approval Chances

Boosting approval for higher property loan percentage requires preparation. Follow these actionable steps:

Build savings: Aim for 25%+ downpayment using CPF + cash to qualify for max LTV.
Reduce debts: Pay off cards/loans pre-application; TDSR must stay under 55%.[6]
Shorten tenure: Opt for 25-30 years to avoid 55% LTV tier.[1]
Improve credit: Check CTC score; fix errors 3-6 months ahead.
Shop banks via Homejourney: One Singpass application sends details to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank—compare offers side-by-side.

Pro tip: For HDB upgraders in Yishun, sell first to reset to 75% LTV—avoid 45% penalty.[1] Use our multi-bank system to skip branch visits safely.

Documentation Checklist for LTV Applications

Income proof: Latest 3 payslips, IR8A, employer's letter (Singpass auto-fills via Homejourney).
CPF statement: Download from CPF portal for OA balance.
ID docs: NRIC, marriage cert if joint.
Property details: Option to Purchase, valuation report.
Debt summary: Bank statements showing liabilities.

Prepare digitally—Homejourney's platform tracks everything in one secure dashboard.

What to Expect: Timelines & Bank Criteria

Banks like DBS and UOB assess LTV alongside TDSR (55% cap), age, and property lease (e.g., 99-year vs freehold).[7][8] Approval takes 1-3 weeks; expect in-principle letter first.

Common pitfall: Valuation gaps—budget 5-10% extra cash. Track real-time rates on Homejourney to time applications when SORA dips.

FAQ: LTV Ratio Singapore Common Questions

What is the current max LTV for first-time HDB buyers?
75% for HDB loans (25% downpayment via CPF/cash, no mandatory cash).[2]

Does LTV apply to refinancing?
Yes, but existing loans reduce it (e.g., 45% for second property). Check Homejourney for refi options.[1]

How does property valuation affect LTV?
Loan based on lower of price/valuation—get multiple quotes via our partners.[2]

Can I use CPF for full downpayment?
For HDB yes (at 75% LTV); banks require 5-25% cash minimum.[1][2]

Where to compare LTV offers safely?
Homejourney's bank-rates page—secure, verified rates from DBS to Maybank.

Disclaimer: This is general info based on MAS rules as of 2026. Consult Homejourney mortgage brokers or financial advisors for personalized advice. Rates fluctuate; verify latest at official sources.

Ready to maximize your LTV ratio Singapore? Calculate eligibility now at https://www.homejourney.sg/bank-rates#calculator and apply once to all major banks via Singpass. Find budget-friendly properties at https://www.homejourney.sg/search. Trust Homejourney for safe, transparent property journeys—your approval starts here.

Explore our pillar: 新加坡房贷如何运作完整指南：Homejourney权威解析 ">Singapore Home Loans Complete Guide.