Loan-to-Value (LTV) Formula Explained, With Examples
Every loan-to-value (ltv) result comes from one formula. Once you understand what goes into it, you can sanity-check any figure you are given, whether by an employer, a bank, a teacher or another website.
The formula
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.
What each input means
- Property price (S$): the value you enter in the calculator.
- Housing loans you already have: choose from None, One, Two or more.
Example
For example, with these inputs:
- Property price (S$): 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$50,000.00
How the result changes
The table keeps the other inputs at their example values and changes property price (s$).
| Property price (S$) | Maximum bank loan | Minimum downpayment | Minimum cash portion |
|---|---|---|---|
| 1,000,000 | S$750,000.00 | S$250,000.00 | S$50,000.00 |
| 500,000 | S$375,000.00 | S$125,000.00 | S$25,000.00 |
| 750,000 | S$562,500.00 | S$187,500.00 | S$37,500.00 |
| 1,250,000 | S$937,500.00 | S$312,500.00 | S$62,500.00 |
| 1,500,000 | S$1,125,000.00 | S$375,000.00 | S$75,000.00 |
Why it matters
Property is the largest purchase most Singaporeans make, and stamp duties, loan limits and cash requirements are front-loaded. Small mistakes in these figures can mean a shortfall at completion, so it pays to run the numbers before you commit to an option to purchase.
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.
Singapore's property market is shaped by cooling measures introduced since 2009, including Additional Buyer's Stamp Duty, loan-to-value limits and debt servicing ratios. These rules are adjusted when the market runs hot, so the numbers you see today may differ from what friends paid a few years ago.
Stamp duties are paid upfront. Buyer's Stamp Duty applies to every purchase at tiered rates up to 6%, while ABSD depends on the buyer's residency status and how many residential properties they already own. Sellers who dispose of a property within the holding period pay Seller's Stamp Duty.
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).
Use the Loan-to-Value (LTV) Calculator to plug in your own numbers.
Run your own numbers: Loan-to-Value (LTV) Calculator