LTV Ratio Singapore: What It Is, Why It Matters & How to Improve Approval Chances
The Loan-to-Value (LTV) ratio in Singapore is the percentage of a property's purchase price or valuation (whichever is lower) that banks or HDB can finance through a home loan. As of August 20, 2024, the maximum LTV limit is 75% for first-time buyers, meaning you need at least a 25% downpayment.[1][2][3] This measure, set by the Monetary Authority of Singapore (MAS), prevents over-leveraging and ensures sustainable property buying.[1]
Understanding LTV ratio Singapore is crucial because it directly impacts your down payment requirements, loan quantum, and approval odds. At Homejourney, we prioritize your safety by verifying all data and helping you navigate these rules transparently to make confident decisions. This cluster article dives deep into LTV limits, calculations, and tactics to maximize your property loan percentage, linking back to our pillar guide on Singapore home loans.
What is Loan-to-Value (LTV) Ratio? A Clear Definition
The LTV ratio calculates as: LTV = (Loan Amount / Property Valuation or Purchase Price, whichever lower) × 100%.[1] For a $1,000,000 condo valued at $1,000,000, a 75% LTV allows up to $750,000 in financing, requiring $250,000 downpayment.[1]
In Singapore's market, valuations from banks like DBS, OCBC, or UOB can differ, so the lower figure caps your loan. HDB concessionary loans also cap at 75% LTV since August 2024, down from 80%, with no mandatory cash component—use CPF Ordinary Account (OA) fully if available, but banks require at least 5% cash for 75% LTV.[1][2]
Why it matters: Higher LTV means less upfront cash, but stricter limits apply for second properties (45% or 25%) or if loan tenure exceeds 30 years/age 65.[1] This ties into Total Debt Servicing Ratio (TDSR) at 55% of income.[1][6]
Current LTV Limits MAS: Singapore-Specific Rules (2026)
MAS enforces LTV limits MAS to cool the market. Here's the breakdown for bank loans:
| Outstanding Housing Loans | LTV Limit | Min Cash Downpayment |
|---|---|---|
| 1st Property | 75% or 55%* | 5% (75%); 10% (55%) |
| 2nd Property | 45% or 25%* | 25% |
| 3rd & Onwards | 35% or 15%* | 25% |
*Lower if tenure >30 years or borrower age >65 at loan end.[1] For HDB resale, submit applications post-Aug 20, 2024, follow 75% LTV—e.g., $500,000 flat needs $125,000 down.[3]
Homejourney verifies these against official MAS and HDB sources, ensuring you avoid surprises. Check our bank-rates page for real-time LTV eligibility across DBS, OCBC, UOB, HSBC, and more.
Why LTV Ratio Matters for Singapore Buyers and Investors
A high LTV preserves cash for renovations or investments, but low LTV signals lower risk to banks, boosting approvals. In 2026's market, with rates at 3-year lows, timing LTV with SORA trends is key.[9]
For first-time HDB buyers in areas like Tengah or Woodlands BTOs, 75% LTV covers most needs if TDSR-compliant.[3] Investors eyeing condos in Orchard or Marina Bay face tighter 45% LTV on second buys, raising down payment requirements.[1] Poor LTV management leads to rejected loans or forced sales in downturns.
At Homejourney, our platform builds trust by auto-filling Singpass data for instant LTV calculations, helping you assess budgets safely before viewing properties on property search.
How to Calculate Your LTV Ratio: Step-by-Step
- Get property valuation: Use Homejourney's tools or bank appraisers—e.g., a $1.2M Punggol resale might valuate at $1.1M, capping loan at 75% of $1.1M ($825K).[1]
- Apply formula: Loan / Lower of Price/Valuation × 100%.
- Factor downpayment: 25% min for first-timers; mix CPF/cash.
- Check TDSR: Debts ≤55% income—e.g., $10K salary limits to $5.5K repayments.[1]
- Use calculator: Try Homejourney mortgage calculator for instant results.
Pro tip: Compare valuations from partner banks like Standard Chartered or Maybank via Homejourney to secure higher LTV.
7 Actionable Ways to Improve LTV Approval Chances
Boost your loan to value odds with these insider steps tailored for Singapore buyers:
- Build savings: Aim for 30%+ downpayment to negotiate higher LTV from banks like CIMB or RHB.[1]
- Reduce debts: Pay off cards/loans pre-application to ace TDSR.[1]
- Shorten tenure: Under 30 years avoids LTV drop—see our Complete Guide to Home Loan Tenure in Singapore | Homejourney .
- Joint applications: Combine incomes for better ratios on family buys.
- Refinance strategically: Clear existing loans first for higher LTV on new properties.[1]
- Pre-approve via Homejourney: One Singpass application hits DBS, OCBC, UOB, HSBC—track offers side-by-side at https://www.homejourney.sg/bank-rates.
- Consult brokers: Homejourney Mortgage Brokers review your profile for optimal LTV.
Common pitfall: Overlooking valuation gaps—always verify via multiple banks.
Homejourney's Multi-Bank Advantage for LTV Success
Skip bank-hopping: Homejourney's platform submits one application to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank. Auto-fill with Singpass for speed, compare LTV offers, and track status securely.[internal] This user-safe approach has helped thousands avoid rejection pitfalls.
Pair with our projects directory for LTV-aligned properties.
FAQ: LTV Ratio Singapore Common Questions
What is the current LTV limit for first HDB flats?
75% for both HDB loans and bank loans since Aug 20, 2024, requiring 25% downpayment.[1][3]
How does LTV affect my downpayment?
For 75% LTV on a $800K resale, loan max $600K; pay $200K via CPF/cash (5% cash min for banks).[1]
Can I get over 75% LTV?
No, MAS caps at 75% for first-timers; lower for others. Use Homejourney calculator to confirm.[1]
Does LTV apply to refinancing?
Yes, but further reduction if existing loans outstanding. Check LTV Ratio Singapore: Complete Guide to Loan-to-Value Limits .[1]
How to improve LTV approval?
