What Is the LTV Limit?
The LTV limit caps the maximum loan amount as a percentage of the property’s value (or purchase price, whichever is lower). It is set by the Monetary Authority of Singapore (MAS) for bank loans and by HDB for concessionary loans.
As at Q2 2026, the limits are:
| Loan Type | LTV Limit |
|---|---|
| HDB concessionary loan | 80% |
| Bank loan — 1st property | 75% |
| Bank loan — 2nd property | 45% |
| Bank loan — 3rd or subsequent property | 35% |
Source: MAS property loan rules; HDB housing loan eligibility. Rates verified as of Q2 2026.
HDB Loan vs Bank Loan: The Key Difference
The HDB concessionary loan offers the highest LTV at 80%, but it is only available for eligible HDB flat purchases. Eligibility conditions include income ceilings, citizenship requirements, and flat type restrictions. Not every client will qualify.
For bank loans, the starting LTV is 75% on the first property. The moment a client has any outstanding residential property loan — whether for a local or overseas property — the LTV drops to 45% on the next purchase.
This catch surprises many upgraders. A client who still has a mortgage on their HDB flat (even if they are selling it) may be treated as a second-property borrower for the new purchase if the timelines do not align.
Practical rule for CEA agents: Always ask whether the client has any outstanding loans before working out their financing. Do not assume the HDB sale will complete before the new purchase.
Minimum Cash Down Payment
LTV limits tell you the maximum loan. The remainder must come from CPF OA and/or cash. For bank loans, MAS requires a minimum 5% cash down payment — CPF alone cannot cover the full down payment.
For a $1,000,000 property on a bank loan (first property):
| Component | Amount |
|---|---|
| Maximum loan (75% LTV) | $750,000 |
| Minimum cash down (5%) | $50,000 |
| Remaining from CPF or cash | $200,000 |
For HDB loans, the 20% shortfall can be covered entirely by CPF OA — no mandatory cash component beyond the deposit.
How LTV Interacts With TDSR and MSR
LTV caps the loan amount. TDSR and MSR cap the monthly repayment. Both limits apply simultaneously — the binding constraint is whichever gives the lower loan amount.
A client may qualify for a 75% LTV loan in theory but fail the TDSR stress test at the 4% medium-term interest rate floor. The actual loan they get approved for could be well below the LTV ceiling.
For CEA agents: Run both calculations — LTV and TDSR — before advising a client on budget. LEVR calculates LTV, TDSR, and MSR in one place so you can see both constraints at once.
Common Scenarios
Upgrader selling HDB, buying resale condo
If the client has an outstanding HDB mortgage and the sale has not completed, they may be assessed at 45% LTV for the condo purchase, not 75%. The difference on a $1.5m property:
- 75% LTV: borrow up to $1,125,000
- 45% LTV: borrow up to $675,000
That is a $450,000 gap. Confirm the HDB sale timeline and mortgage discharge date before presenting financing options.
Joint purchase where one party has an existing loan
LTV is assessed on the most restrictive borrower. If one joint buyer has an outstanding mortgage, the couple is subject to the second-property LTV (45%) even if the other party is buying for the first time.
Client with an overseas mortgage
Outstanding overseas property loans count toward LTV assessment in Singapore. A client with a Malaysian or UK mortgage is not treated as a first-time borrower here.
What CEA Agents Are Responsible For
CEA agents are not mortgage brokers. Advising clients on which loan to take is outside the scope of a salesperson’s license. What you are responsible for is:
- Ensuring clients understand that financing limits exist before they commit
- Directing clients to a licensed mortgage broker or bank for detailed advice
- Not quoting loan amounts without directing clients to verify with a lender
Never present an LTV calculation as a guarantee of loan approval. It is a regulatory ceiling, not a bank’s credit decision.