Loan To Value (LTV)/ Max Loan:
The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased.
Loan To Value Singapore Limit And Ratio Explained
1) A maximum tenure of 30 years or below Age 65 (whichever is earlier), you can either get
a) 80% loan amount without existing mortgage loan
b) 50% loan amount with existing mortgage loan
2) If you take up a loan of more than 30 years or extends past the Age of 65, you can either
a) borrow up to 50% of property value if you do not have an existing housing loan
b) borrow up to 30% of property value if you have an existing housing loan
3) Non-individual borrowers will now have a cap of 20% LTV
4) Non-individual borrowers will now have a cap of 40% LTV
Below are effects from previous measures
Loan to value (LTV) is one of the key criteria when a home buyer decides on a housing loan. It is simply a term to describe the housing loan quantum a bank or financial institution is willing offer as a percentage to the valuation of the property in question. While most 1st time home buyers want to obtain a loan to value ratio of 80%, property investors usually opt for a ratio of 50%.
LTV = Loan To Value (Max Loan %)
TDSR = Total Debt Service Ratio
BSD/ ABSD/ Loan to Value/ Payment Scheme