Loan-to-Value (LTV)

Maximum proportion of property price you can borrow. First housing loan LTV is 75% (private/HDB bank loan), or 80% for HDB concessionary loan. Drops sharply for second or third loans.

What LTV is

Loan-to-Value is the maximum percentage of a property's price (or valuation, whichever is lower) that you can borrow. The remainder is your downpayment.

LTV limits exist to keep household debt manageable and to ensure buyers have meaningful skin in the game. Lower LTV = more equity in the home from day one.

LTV limits by loan type and history

First housing loan: 75% for bank loan; 80% for HDB concessionary loan.

Second housing loan (you still hold the first): 45% if remaining tenure ≤ 30 years and you'll finish before age 65; otherwise 25%.

Third or subsequent loan: 35% LTV; or 15% if the long-tenure / age conditions don't fit.

Loan tenure above 30 years (private) or 25 years (HDB) caps LTV at 55% even on a first loan.

Worked example

Buying a S$1.5 million condo with a first bank loan at 75% LTV: maximum loan S$1,125,000, downpayment S$375,000.

Of the downpayment, at least 5% must be in cash (S$75,000). The remaining 20% (S$300,000) can be CPF Ordinary Account or cash.

If you already own a property and are buying this as a second home, LTV drops to 45%: maximum loan S$675,000, downpayment S$825,000 — a S$450,000 swing.

How to maximise LTV

Sell the first property first. Banks check your housing-loan count at the point of application — sell, then your next loan resets to first-loan LTV.

Keep the loan tenure under 30 years to stay in the 75% LTV band.

Refinance, don't re-borrow. Refinancing the same loan amount doesn't reset LTV; cashing out (re-borrowing more) triggers tighter LTV rules.

Frequently asked questions

What's the maximum LTV for a first home loan?

75% for a bank loan, 80% for an HDB concessionary loan. The remainder (downpayment) is 25% or 20% respectively, with at least 5% in cash for bank loans (HDB loans allow fully-CPF downpayment).

What's the LTV for a second home loan?

45% if you still hold the first home and the new loan tenure is ≤ 30 years and ends before age 65. Otherwise 25%. Third or subsequent housing loans drop to 35% or 15% LTV under similar conditions.

How can I get back to first-loan LTV after a second purchase?

Sell the first property before applying for the new loan. Banks check the housing-loan count at the point of application — if you don't have any outstanding housing loans, the new one is your 'first' for LTV purposes.

Does longer loan tenure reduce LTV?

Yes. If loan tenure exceeds 30 years (private) or 25 years (HDB), or extends past age 65, LTV is capped at 55% even on a first loan. Most borrowers stay within those tenure limits to preserve the higher LTV.

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