Loan-to-Value (LTV) ratio is a measure used by financial institutions to assess the risk of a loan and determine the maximum amount they are willing to lend in relation to the appraised value or purchase price of a property. In Singapore, the Monetary Authority of Singapore (MAS) sets the LTV limits for residential property loans.
As of my knowledge cutoff in September 2021, the LTV limits for residential properties in Singapore are as follows:
For individuals with no outstanding housing loans:
First property: Up to 75% LTV limit.
Second property: Up to 45% LTV limit.
Third and subsequent properties: Up to 35% LTV limit.
For individuals with outstanding housing loans:
First property: Up to 45% LTV limit.
Second and subsequent properties: Up to 35% LTV limit.
It's important to note that the LTV limits may be subject to additional requirements or adjustments by individual banks and financial institutions. The LTV limits can also be influenced by factors such as the type of property (e.g., HDB flats, private condominiums) and the loan tenure. It's advisable to consult with banks or mortgage specialists for the most accurate and up-to-date information on LTV limits for specific property transactions in Singapore.