LTV Ratio Singapore: Limits, Improve Approval Odds | Homejourney

The Loan-to-Value (LTV) ratio in Singapore is the maximum percentage of a property's purchase price or valuation (whichever is lower) that banks or HDB will lend you, set by the Monetary Authority of Singapore (MAS) to prevent over-leveraging.

As of August 2024, both HDB concessionary loans and bank loans cap at 75% LTV for first-time buyers, requiring a 25% downpayment (5% cash minimum for banks).[1][2][3] This cluster dives deep into LTV limits, why it matters for your home purchase, and actionable steps to improve approval chances—building on our pillar guide, Singapore Home Loan How It Works: Complete Guide.

What is Loan-to-Value (LTV) Ratio in Singapore?

The LTV ratio Singapore determines your property loan percentage, directly impacting down payment requirements. For example, on a S$500,000 HDB resale flat in Punggol, a 75% LTV means you borrow up to S$375,000, covering the rest with 20% CPF/OA and 5% cash.[2][3]

MAS adjusts LTV limits MAS via cooling measures; HDB loans dropped from 80% to 75% in August 2024 to ensure affordability.[1][2] Bank loans remain at 75% for first timers, but drop based on factors like age and existing loans—key for upgraders from Tampines HDB to a Sengkang condo.[4]

Current LTV Limits and Down Payment Requirements

Singapore's LTV caps vary by borrower profile. Here's the breakdown:

Housing Loans	LTV Limit	Min Cash Downpayment
1st (No existing loans)	75% or 55%*	5% (75%); 10% (55%)
2nd	45% or 25%*	25%
3rd & onwards	35% or 15%*	25%

*55%/25%/15% applies if loan tenure >30 years (private) or >25 years (HDB), or extends past age 65.[1][3] For a S$1M condo in Orchard, first-timers pay S$50,000 cash + S$200,000 CPF for 75% LTV.

HDB loans allow up to 75% LTV on BTO or resale flats, with staggered payments (5% upfront, 20% at completion).[2] Private properties with short leases (<60 years) may face lower LTV, like 60% for 30-40 year leases.[2]

Why LTV Ratio Matters for Singapore Buyers

A high LTV boosts borrowing power but ties you to stricter TDSR (55% income cap) and MSR (30% for HDB).[5][6] It matters because lower LTV means more upfront cash, affecting affordability amid SORA rates around 3%.[7]

For investors eyeing ECs in Tengah, exceeding LTV limits kills deals—Homejourney verifies eligibility instantly via our calculator at https://www.homejourney.sg/bank-rates#calculator, prioritizing your safety with transparent data.

Factors Affecting Your LTV Limit

Existing Loans: Zero loans = 75%; one = 45%; two+ = 35%.[1][3]
Age & Tenure: Loan past 65th birthday caps LTV at 55%.[2][4]
Property Type: Shell companies limited to 15%; short-lease properties devalued.[4]
Credit Profile: Strong Singpass-linked income boosts approval.[7]

Real example: A 40-year-old with no loans buying a S$800,000 Yishun HDB gets 75% LTV (S$600,000 loan). At 55, same flat with 30-year tenure hits 55% LTV (S$440,000 loan).[2]

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

Boost odds with these tactical steps, tailored for Singapore buyers:

Check Eligibility First: Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator—auto-fills via Singpass for accurate LTV/TDSR preview.
Reduce Existing Debt: Pay down cards/loans below 40% utilization; TDSR must stay <55%.[6]
Optimize Tenure: Choose <30 years to hit 75% LTV; under 65 keeps full limit.[1]
Boost Downpayment: Use CPF windfalls; aim 25%+ cash to negotiate better loan to value terms.
Apply Multi-Bank via Homejourney: One Singpass submission to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank—compare offers side-by-side at https://www.homejourney.sg/bank-rates.
Prepare Docs: Income slips, CPF statements, ITR—upload via Homejourney for instant verification.

Pro tip: Time applications post-CPF top-up; a S$20,000 OA boost covers 5% cash on S$400,000 flats in Woodlands.

Homejourney: Your Safe Path to Better LTV Approval

Skip bank queues—Homejourney's multi-bank system sends your profile to 10+ partners (DBS to Citibank), tracks status, and matches best rates. Our trust-first approach verifies data, ensuring confident decisions. Search budget-fit properties at https://www.homejourney.sg/search.

FAQ: LTV Ratio Singapore

What is the current LTV limit for first-time HDB buyers?
75% for both HDB and bank loans since August 2024, with 5% min cash.[2][3]

How does LTV affect my downpayment?
75% LTV = 25% down (5-10% cash + CPF); calculate yours on Homejourney.[1]

Can I get higher than 75% LTV?
No, unless exempt (e.g., no prior loans under special conditions); check MAS rules.[4]

How to improve bank loan approval with low LTV?
Lower debt, shorter tenure, strong credit—use Homejourney's tools for pre-approval.

What's the LTV for second property?
Drops to 45%; 25% cash required.[3]

Ready to maximize your LTV ratio Singapore? Start with Homejourney's safe, verified platform at https://www.homejourney.sg/bank-rates. For full mortgage insights, revisit our pillar guide.