Loan-to-Value (LTV) in Singapore: 5 Mistakes to Avoid
Shows the maximum bank loan and the minimum downpayment under MAS loan-to-value limits for loans up to 30 years (25 years for HDB flats). The maths is not complicated, but a handful of errors come up again and again in this and related property & hdb calculations. Here is what to watch for.
Beyond the price, buyers should budget for legal fees, valuation, home insurance, renovation and furnishing. Running the figures in advance helps you decide how much cash to hold back and whether a smaller loan or longer tenure makes more sense.
Most Singaporeans live in HDB flats, which can be financed with an HDB concessionary loan at 0.1% above the CPF Ordinary Account rate or with a bank loan. Private property must be financed with a bank loan, and banks offer fixed, floating and SORA-pegged packages.
1. Assuming the bank will lend 75%
LTV falls to 45% for a second loan and is reduced further for long tenures or older borrowers.
2. Using the advertised interest rate for affordability
Banks apply a stress-test rate to TDSR and MSR calculations.
3. Ignoring SSD when selling early
Selling within four years of buying (for purchases from 4 July 2025) attracts Seller's Stamp Duty.
4. Forgetting the cash portion
Part of the downpayment must be in cash, and CPF cannot be used for it.
5. Forgetting ABSD on a second property
Citizens pay 20% ABSD on a second residential property, which can be hundreds of thousands of dollars.
The correct method
LTV is 75% for a first housing loan, 45% for a second and 35% for a third. At least 5% (first loan) or 25% (subsequent loans) must be paid in cash.
For example, with these inputs:
- Property price (S$): 1,000,000
- Housing loans you already have: None
the calculator returns:
- Maximum bank loan: S$750,000.00
- Minimum downpayment: S$250,000.00
- Minimum cash portion: S$50,000.00
Related calculations
- Additional Buyer's Stamp Duty (ABSD) Calculator: Calculates ABSD by buyer profile and the number of residential properties owned, using the rates in force since 27 April 2023.
- Total Property Stamp Duty Calculator: Adds BSD and ABSD together so you know the full stamp duty bill before you sign an option to purchase.
- Seller's Stamp Duty (SSD) Calculator: Calculates SSD for residential property bought on or after 4 July 2025 and sold within four years.
- HDB Loan Calculator: Calculates monthly repayments on an HDB concessionary loan, which is pegged at 0.1% above the CPF Ordinary Account rate (2.6% a year).
The Loan-to-Value (LTV) Calculator applies the formula consistently, so it is a quick way to double-check your own working.
Run your own numbers: Loan-to-Value (LTV) Calculator