In Singapore, before you apply for a housing loan from banks or any financial institution (FI), you need to understand the Loan-To-Value (LTV) limits that might affect you. The LTV limit determines the maximum housing loan amount you can borrow, which determines how much upfront cash or CPF fund you need to set aside before committing any Singapore property purchase.

On 5th of July 2018, MND, MAS and MOF jointly announced that the LTV limits would be tightened by 5%-points on all housing loans granted by financial institutions (FI), as part of a package of measures to cool the property market in Singapore and keep housing price increases in line with economic fundamentals.

On the 15th of December 2021, MND, MAS, and MOF jointly announced another round of cooling measures to promote continued housing affordability. The government also calibrated the private residential property to dampen broad-based demand, especially from those purchasing property their 2nd or subsequent properties for investment rather than owner-occupation. The measures were introduced to tighten financing conditions for both the HDB and private housing to encourage greater financial prudence. The Government will also be ramping up the supply for both private and public housing in 2022.

In a simpler term, the LTV limit means the loan amount as a percentage of the property’s value. For example, if your LTV limit is 75%, this means you can only borrow $750,000 from the bank for a property valued at $1,000,000.