The Loan-to-Value (LTV) limit is the single most important number in your mortgage calculation. It determines the maximum percentage of a property's value that a bank can lend you — and therefore how much cash you need on day one. In Singapore, these limits are set by the Monetary Authority of Singapore (MAS) and are not negotiable with your lender.
As of March 2026, the LTV framework remains unchanged from the last round of cooling measures. Here is exactly how it works.
The Core LTV Table
The LTV limit you face depends on two things: how many outstanding residential property loans you have at the time of purchase, and the loan tenure.
| Outstanding Home Loans | Maximum LTV (standard tenure) | Maximum LTV (age + tenure > 65 years) |
|---|---|---|
| None (1st property) | 75% | 55% |
| 1 (2nd property) | 45% | 25% |
| 2 or more (3rd+ property) | 35% | 15% |
"Outstanding home loans" means loans still being repaid — not properties owned. If you own a property but have fully paid the mortgage, you are treated as having zero outstanding home loans for your next purchase.
The Age-and-Tenure Rule
The lower LTV column applies when the sum of the loan tenure and the borrower's age exceeds 65 years. This rule protects against borrowers taking long mortgages into retirement.
Example: A 45-year-old borrower applying for a 25-year loan. Age + tenure = 70, which exceeds 65. The lower LTV tier applies: 55% for a first property (not 75%).
Practical impact: For borrowers in their late 40s and 50s purchasing their first or only property, this effectively increases the minimum cash outlay significantly. A S$2M property with 55% LTV requires S$900,000 upfront (45% down), versus S$500,000 (25% down) at the standard 75% LTV.
Minimum Cash Down Payment
LTV limits work alongside mandatory cash down payment rules. Even when LTV permits borrowing a high percentage, a portion of the down payment must be in cash (not CPF).
| Property Type | Minimum Cash Down | CPF Can Cover |
|---|---|---|
| First property, standard LTV | 5% cash | Remaining 20% from CPF or cash |
| Second property | 25% cash | Remaining 20% from CPF or cash |
| Third+ property | 25% cash | Remaining 40% from CPF or cash |
The full down payment is always (100% − LTV limit). The minimum cash component is a floor within that down payment.
HDB Loans vs Bank Loans
HDB concessionary loans operate on a separate, more generous framework — but come with important conditions.
| Feature | HDB Loan | Bank Loan |
|---|---|---|
| Maximum LTV | 75% | 75% (or lower per tier) |
| Minimum down payment | 25% (CPF allowed) | 25% (5% cash minimum) |
| Eligibility | Singapore Citizens only, HDB flats only | All buyers, all property types |
| Interest rate | 2.6% p.a. (fixed at CPF OA rate + 0.1%) | Market rate (SORA-based or fixed) |
| Prepayment penalty | None | Typically during lock-in period |
With the August 2024 cooling measures, the HDB loan LTV was reduced from 80% to 75%, bringing it in line with bank loans. A first-time SC buyer of a S$500,000 HDB flat now needs S$125,000 upfront as a down payment — this can be funded from CPF if the OA balance is sufficient, with no mandatory cash component for first-time HDB purchases using the HDB loan. The government simultaneously increased CPF Housing Grants (EHG raised to S$120,000 maximum for eligible families) to partially offset the impact of the lower LTV.
Eligibility conditions for HDB loan (as at 2026):
- At least one buyer must be a Singapore Citizen
- Gross household income ≤ S$14,000 (≤ S$21,000 for extended families)
- Must not own any private residential property (or have disposed of it within 30 months)
- Must not have taken more than two previous HDB loans
How the Total Debt Servicing Ratio (TDSR) Further Constrains Borrowing
LTV is not the only cap. Even if LTV allows 75%, a bank cannot approve a loan if it would push your TDSR above 55%. TDSR is calculated as:
Total monthly debt obligations ÷ gross monthly income ≤ 55%
All existing debt is counted: car loans, credit card balances (counted at 5% of outstanding), student loans, and other mortgages. In practice, for buyers with other debt commitments, TDSR often bites before LTV does.
For HDB purchases specifically, the Mortgage Servicing Ratio (MSR) applies an additional cap: monthly repayments on the HDB loan cannot exceed 30% of gross income.
Worked Examples
Example 1: First-time SC buyer, S$800,000 HDB resale flat, age 35, 25-year loan
- Age + tenure = 60 (below 65 threshold — standard LTV applies)
- HDB loan available: 75% LTV → borrow S$600,000
- Down payment: S$200,000 (25%, fully from CPF if sufficient OA balance; no mandatory cash for HDB loan)
- Monthly repayment at 2.6%: ~S$2,714
Example 2: SC buyer, S$1.5M private condo (1st property), age 42, 30-year loan
- Age + tenure = 72 (exceeds 65 — lower LTV tier applies)
- Bank loan: 55% LTV → borrow S$825,000
- Down payment: S$675,000 (45%)
- Minimum cash: 5% = S$75,000
- Remaining S$600,000 from CPF or cash
- Monthly repayment at 3.5% (fixed): ~S$3,704
Example 3: SC with 1 outstanding loan, buying 2nd property at S$1.2M, age 38, 25-year loan
- Age + tenure = 63 (below 65 — standard LTV applies)
- Bank loan: 45% LTV → borrow S$540,000
- Down payment: S$660,000 (55%)
- Minimum cash: 25% = S$300,000
- Remaining S$360,000 from CPF or cash
- Note: ABSD (20% for SC = S$240,000) is on top of this
What Counts as an "Outstanding Loan"?
The loan count is assessed at the point of applying for the new loan. A few important nuances:
- Joint borrowers: If you are a co-borrower on someone else's property loan, that counts as an outstanding loan against you for LTV purposes.
- Overseas property loans: MAS counts overseas property loans in the LTV assessment if they are visible to MAS-regulated lenders. In practice, undeclared overseas loans are a borrower risk — banks will ask.
- Bridging loans: A bridging loan taken to complete a new purchase while selling an existing property is typically treated as an outstanding loan during the bridging period. Timing of the new application matters.
FAQ
Can I get a higher LTV if I use CPF?
No. CPF usage does not change the LTV limit. The LTV cap is on how much the bank can lend, regardless of how the remaining amount is funded.
Does refinancing affect my LTV?
When refinancing an existing loan, the bank reassesses LTV against current valuation. If property values have risen, a lower LTV may allow cash-out refinancing. The outstanding loan count remains unchanged.
Can I borrow more from a finance company instead of a bank?
Finance companies licensed by MAS are subject to the same LTV limits. There is no higher-LTV regulated lender option in Singapore.
What happens if property valuation comes in lower than purchase price?
LTV is applied against the lower of purchase price or valuation. If you agree to pay S$1.2M but the bank values the property at S$1.1M, your loan is capped at 75% × S$1.1M = S$825,000. The S$100,000 gap must be funded by you in cash.
Summary
The LTV framework in Singapore is straightforward but has several compounding effects that buyers underestimate. The age-and-tenure rule catches many buyers in their 40s and 50s off-guard, effectively requiring 40–45% down on a first private property instead of 25%. Second-property buyers face a structural double-hit: 45% LTV (requiring 55% down, 25% in cash) combined with 20% ABSD on top.
Planning your purchase sequence — and knowing your LTV tier before shortlisting properties — is not optional for buyers with existing loans or advancing age.
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