What is Loan-to-Value LTV Ratio and Why It Matters: Frequently Asked Questions
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 can lend you as a home loan. It directly determines your down payment requirements, with current maximums at 75% for first-time buyers, meaning a minimum 25% downpayment.[1][2][3]
This cluster article breaks down LTV ratio Singapore essentials, connecting to our pillar guide on Singapore home loans. At Homejourney, we prioritize your safety by verifying data from MAS and HDB sources, helping you make trusted decisions on property loan percentage limits.
Understanding LTV Ratio in Singapore
The LTV ratio is calculated as: LTV = (Loan Amount / Property Valuation or Purchase Price, whichever lower) × 100%.[1][2] For a $1,000,000 condo valued at $1,000,000, a 75% LTV allows up to $750,000 loan, requiring $250,000 downpayment.
MAS sets LTV limits to prevent over-leveraging, tightened multiple times—most recently to 75% for HDB loans from 80% on 20 August 2024.[1][3] Bank loans cap at 75% unchanged.[3] This matters because lower LTV means higher upfront cash or CPF needed, affecting affordability for first-time HDB buyers or condo investors.
At Homejourney, check your eligibility instantly via our mortgage calculator—it factors in LTV, MSR, and TDSR for precise borrowing power.
Current LTV Limits and Downpayment Requirements (2026)
As of 2026, LTV varies by property number, borrower age, and tenure. Here's the breakdown from MAS guidelines:
| Outstanding Housing Loans | LTV Limit | Minimum Cash Downpayment |
|---|---|---|
| None (1st property) | 75% or 55%* | 5% (75% LTV); 10% (55% LTV) |
| 1 (2nd property) | 45% or 25%* | 25% |
| 2 or more | 35% or 15%* | 25% |
*55%/25%/15% if loan tenure exceeds 30 years or borrower age hits 65.[1] For HDB loans, downpayment can use CPF OA fully (no cash minimum beyond 5%), unlike banks requiring 5-25% cash.[1]
Example: Buying a $500,000 HDB resale flat (1st property). Max HDB loan: $375,000 (75% LTV), downpayment $125,000 (5% cash min $25,000 + CPF).[3] Valuation below price? Loan based on lower value.[1]
Why LTV Ratio Matters for Singapore Buyers
LTV limits MAS enforce protect against debt bubbles, alongside TDSR (55% debt-to-income) and MSR (30% for HDB).[6] High LTV risks negative equity if prices fall; low LTV builds equity faster but strains cash flow.
For first-timers eyeing Tengah BTO or resale in Bedok, 75% LTV eases entry but pairs with ABSD and grants like EHG (up to $120,000).[3] Investors face 45%+ drops, ideal for cash-rich buyers.[1] Refinancing? LTV applies to new loan quantum, but banks assess holistically.
Insider tip: Properties in mature estates like Ang Mo Kio often appraise higher, boosting effective LTV. Use Homejourney's property search to filter by budget post-LTV calc.
How LTV Interacts with Other Rules: Real Example
Meet Ali, 30, buying $800,000 Punggol resale (1st HDB). Valuation $780,000. Max LTV 75%: Loan $585,000. Downpayment: $195,000 ($39,000 cash + CPF).[1] TDSR caps payments at 55% income; MSR at 30%.[6]
Steps to maximize LTV on Homejourney:
- Verify eligibility with our calculator.
- Compare rates from DBS, OCBC, UOB, HSBC at bank-rates.
- Apply via Singpass for multi-bank offers—one form, verified data.
- Track SORA for timing; lower rates improve affordability.
Homejourney's transparency ensures safe choices—connect with our mortgage brokers for personalized LTV advice. See related: LTV Ratio Singapore Guide.
Interest Rate Trends Impacting LTV Affordability
With SORA at 3-year lows entering 2026, lower rates make higher LTV loans more manageable.[8] Banks like DBS and UOCB offer competitive packages.
The chart below shows recent interest rate trends in Singapore:
Rates stabilizing aids LTV planning—use Homejourney to compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more in one safe platform.
Practical Tips to Navigate LTV Limits
- Boost downpayment: Use CPF OA + grants; aim 25%+ for better bank rates.
- Check valuation early: Multiple bank quotes prevent shortfalls.
- Refinance smartly: Existing loans lower new LTV—time with rate drops.[7]
- First-timers: Pair with EHG for effective LTV boost.[3]
- Disclaimer: This is general info; consult Homejourney brokers or advisors for your case. Regulations per MAS/HDB as of 2026.[1][6]
Positioned as your trusted partner, Homejourney verifies all data for confident moves.
Frequently Asked Questions on LTV Ratio Singapore
Q1: What is the current HDB LTV limit?
75% effective 20 August 2024, requiring 25% downpayment (5% cash min).[1][2][3]
Q2: Does LTV apply to refinancing?
Yes, but based on new property value/price; existing loans reduce caps for additional borrowing.[1][7]
Q3: How does valuation affect my loan?
Loan = LTV % of lower of price/valuation. E.g., $1.2M price, $1M val = 75% of $1M.[1]
Q4: Can I use CPF for full downpayment?
HDB yes (beyond 5% cash); banks require 5-25% cash.[1]
Q5: What's the LTV for second properties?
45% or 25%*, with 25% cash minimum.[1]
Master LTV for smarter buying—explore our pillar LTV Ratio Singapore Guide. Start safely: Visit Homejourney bank-rates to compare, calculate, and apply today.
