{"id":517,"date":"2024-08-20T16:48:58","date_gmt":"2024-08-20T08:48:58","guid":{"rendered":"https:\/\/spacemen.digital\/test\/?p=75"},"modified":"2024-08-20T17:51:10","modified_gmt":"2024-08-20T09:51:10","slug":"loan-to-value-ltv-ratio","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/glossary\/loan-to-value-ltv-ratio\/","title":{"rendered":"Loan-to-value (LTV) ratio"},"content":{"rendered":"\n

What is the loan-to-value (LTV) ratio?<\/strong><\/h2>\n\n\n\n

The LTV decides the highest amount of money you can borrow to fund your house. <\/p>\n\n\n\n

This affects how much cash or CPF Ordinary Account savings you must pay as a down payment. It’s applicable whenever you take a home loan to finance your property purchase, regardless of whether it’s your first, second, or subsequent mortgage.<\/p>\n\n\n\n

For example, if your LTV ratio is 70%, you can borrow as much as 70% of the value of your property, or the price you pay to purchase it, whichever is lower.<\/p>\n\n\n\n

Remember that for newly launched properties such as new HDB flats, new executive condos (ECs), and new launch condominiums, the LTV ratio will always be based on the purchase price.<\/p>\n\n\n\n

LTV ratios are implemented as a precaution to prevent borrowers from borrowing too much money and becoming over-leveraged.<\/p>\n\n\n\n

The Monetary Authority of Singapore (MAS) establishes the LTV limits, which differ based on whether you obtain a bank or HDB loan.<\/p>\n\n\n\n

What types of loan-to-value (LTV) ratios are there?<\/strong><\/h2>\n\n\n\n

There are two primary types of LTV to consider when buying a property locally. <\/p>\n\n\n\n

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  1. The HDB housing loan LTV (Updated on August 20th, 2024)<\/li>\n<\/ol>\n\n\n\n

    If you’re buying an HDB property, including BTO flats, sales of balance flats, re-offer of balance flats, or resale flats, you can get a maximum LTV ratio of 75% from HDB. This means you can borrow up to 75% of the property’s value from HDB. <\/p>\n\n\n\n

    You can use cash or a mix of cash and savings from your CPF OA to pay the down payment.<\/p>\n\n\n\n

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    1. The bank loan LTV<\/li>\n<\/ol>\n\n\n\n

      If you want a bank loan instead of an HDB loan, the maximum LTV ratio is also 75% for the first loan. When paying the remaining 25% of the property price, you must pay 5% of it in cash. The remaining 20% can be paid using cash and savings from your CPF OA.<\/p>\n\n\n\n

      Note that the HDB or banks are not obligated to approve the full LTV amount. They may approve a lower LTV limit or even reject your application completely.<\/p>\n\n\n\n

      Recommended article: National Day Rally 2024: Higher Enhanced CPF Housing Grants (EHG), lower Loan-to-Value (LTV) limits & more<\/a><\/em><\/p>\n\n\n\n

      The information provided was accurate at the time of publication. For the latest changes and updates, head over to the official websites.<\/p>\n\n\n\n

      What factors affect the loan-to-value (LTV) ratio?<\/strong><\/h2>\n\n\n\n

      The following are the main factors that will establish your LTV limit, including: <\/p>\n\n\n\n