What LTV is
Loan-to-Value (LTV) is the cap on how much you can borrow against a property, expressed as a percentage of its value or purchase price, whichever is lower. At 75% LTV on a $1,000,000 property, the maximum loan is $750,000 and you fund the remaining $250,000 from cash and/or CPF.
LTV works alongside the income-based limits — TDSR (55%) and MSR (30%). TDSR/MSR cap the loan based on your income; LTV caps it based on the property. The binding constraint is whichever gives the smaller loan.
Bank loan LTV limits
The limit steps down with each additional outstanding housing loan you already have:
| Outstanding housing loans | Standard LTV | Lower LTV* |
|---|---|---|
| None (1st loan) | 75% | 55% |
| One (2nd loan) | 45% | 25% |
| Two or more (3rd+ loan) | 35% | 15% |
*The lower LTV applies (for an OTP granted on or after 6 Jul 2018) if the loan tenure exceeds 30 years (25 years for HDB flats), or the loan period extends beyond the borrower's age of 65.
HDB concessionary loan
The HDB loan LTV limit is 75%, reduced from 80% with effect from 20 August 2024. The change aligned the HDB loan with bank-loan limits and means HDB-loan buyers must now fund at least 25% (rather than 20%) of the price from CPF and/or cash.
Minimum cash down-payment
The down-payment (the portion not covered by the loan) has a minimum-cash component that depends on the LTV tier:
| LTV granted | Down-payment | Min. in cash |
|---|---|---|
| 75% | 25% | 5% cash, balance cash/CPF |
| 55% | 45% | 10% cash, balance cash/CPF |
| 45% / 35% / 25% / 15% | 55%–85% | 25% cash, balance cash/CPF |