Loan-to-Value (LTV) Ratio Singapore
The MAS rule that caps how much of your property price a bank can lend you
The Loan-to-Value (LTV) ratio is the maximum percentage of a property’s purchase price or valuation that a bank or HDB is allowed to lend a borrower, set by the Monetary Authority of Singapore (MAS) as part of its property cooling measures. A lower LTV limit means a buyer must fund more of the purchase with cash and CPF savings.
Not financial advice. All figures for educational reference only. Data as at October 2026.
- As at October 2026, the LTV limit for a first housing loan from a bank is 75% of the property’s price or valuation, whichever is lower; it drops to 45% for a second outstanding housing loan, and 35% for a third or subsequent loan.
- HDB loans have their own, generally higher, LTV limit of up to 80% for eligible flat buyers.
- The lower the LTV allowed, the larger the minimum cash-plus-CPF downpayment a buyer needs.
- LTV limits are tightened or loosened by MAS as part of broader property cooling or support measures, alongside tools like TDSR and ABSD.
- LTV is calculated on the lower of the purchase price or the bank’s/HDB’s valuation — overpaying for a property doesn’t increase your loan quantum.
Table of Contents
What Is Loan-to-Value (LTV) Ratio?
LTV is one of MAS’s key macroprudential tools for keeping household leverage against property in check. The limit applies on top of income-based checks like TDSR and MSR, and is tiered based on how many outstanding housing loans a borrower already has — the more loans, the lower the LTV, and the more cash and CPF a buyer needs to put down.
At 75% LTV, a buyer needs at least 25% from cash and CPF, of which a minimum 5% must be in cash for bank loans. HDB loans follow a separate, generally more generous LTV schedule, reflecting HDB’s role in supporting first-time and lower-income flat buyers.
LTV matters just as much to property-focused REIT and dividend investors as to homebuyers, since it shapes how much leverage a household can realistically take on for an investment property versus a primary residence. Investors comparing a leveraged physical property purchase against buying an S-REIT for similar real estate exposure often find the REIT route avoids LTV, TDSR, and stamp duty considerations entirely, at the cost of direct control over the underlying asset.
How It Works in Singapore
LTV tier depends on the number of outstanding housing loans a borrower has, and can be further reduced by loan tenure or the borrower’s age at loan maturity (loans extending past age 65, or with tenures beyond regulatory caps, attract lower LTV limits). LTV works alongside, but separately from, TDSR and MSR, which cap based on the borrower’s income rather than the asset’s value — a buyer can be LTV-eligible for a large loan but still fail the income-based serviceability tests.
Worked Example
Ms Ong buys a condo valued at S$1,200,000 as her first housing loan, with a 25-year tenure at age 35. At 75% LTV, the bank can lend up to S$900,000. She must fund the remaining S$300,000, or 25%, via cash and/or CPF, with a minimum of 5% (S$60,000) in cash. If this were instead her second property loan, with an existing HDB loan outstanding, LTV drops to 45%, meaning the bank lends only S$540,000 — and she’d need S$660,000 from cash and CPF, a far larger outlay.
Worked Example
Advantages
- A clear, bank-agnostic ceiling makes it easy to estimate the upfront cash and CPF needed before house-hunting.
- Tiered limits, with lower LTV for second and third loans, discourage excessive leverage on multiple properties and reduce systemic risk.
- Because LTV uses the lower of valuation or price, it protects buyers from over-borrowing against an inflated purchase price.
- Higher LTV for HDB loans, up to 80%, helps first-time flat buyers with less savings get on the property ladder.
Risks and Limitations
- A lower LTV for second and third properties can make it much harder for investors to scale a leveraged property portfolio.
- If a bank’s valuation comes in below the purchase price, the loan quantum, and therefore the cash needed, is based on the lower figure, catching some buyers by surprise.
- MAS can tighten LTV limits with immediate effect in response to a hot property market, changing the numbers for buyers mid-search.
- A high LTV loan means a smaller equity buffer, increasing the risk of negative equity if property prices fall.
- LTV limits interact with TDSR and MSR — passing the LTV test doesn’t guarantee the loan amount is actually affordable under the income-based checks.
LTV vs TDSR
| Feature | LTV | TDSR |
|---|---|---|
| What it limits | Loan amount as % of property value | Total monthly debt as % of gross monthly income |
| Set by | MAS for bank loans, HDB for HDB loans | MAS |
| Current limit | 75% / 45% / 35%, by loan count | 55% of gross monthly income |
| Purpose | Cap leverage against asset value | Cap leverage against income |
The Bottom Line
LTV limits are one of the key levers MAS uses to keep Singapore’s property market from overheating. For buyers, the practical takeaway is simple: the more outstanding housing loans you have, the smaller the percentage a bank will lend, and the bigger the cash-plus-CPF cheque you’ll need to write.
Related Terms:
Frequently Asked Questions
What is the current LTV limit for a first housing loan in Singapore?
As at October 2026, it’s 75% of the property’s purchase price or valuation, whichever is lower, for bank loans; HDB loans can go up to 80% for eligible buyers.
Does LTV drop for a second property loan?
Yes — it falls to 45% for a borrower’s second outstanding housing loan and 35% for a third or subsequent loan.
Is LTV calculated on purchase price or valuation?
Whichever is lower — if you pay above the bank’s valuation, the loan is still capped based on the lower valuation figure.
How does LTV affect my minimum downpayment?
A lower LTV limit means a larger portion of the purchase price must come from cash and CPF — at 75% LTV, you need at least 25% from cash and CPF, with a minimum 5% in cash.
Can MAS change LTV limits?
Yes, MAS adjusts LTV limits periodically as part of its property cooling or support measures, alongside other tools like ABSD and TDSR.
Disclaimer: This glossary entry is for educational purposes only and does not constitute financial advice. Data sourced from official regulator and industry websites as at October 2026.