The LTV ratio (Loan-to-Value ratio) determines how much of a property’s price or value can be financed by a loan. The LTV depends on various factors like loan tenure and age of the borrower.
a. 75% LTV (Standard Case)
The maximum LTV ratio is 75% for most loans when:
The loan tenure is 30 years or less.
The loan tenure does not extend beyond the age of 65 for the borrower.
The borrower does not have any existing home loans.
This means the bank will loan up to 75% of the property’s value, and you need to pay the remaining 25% (with at least 5% in cash).
b. 55% LTV (Reduced Case)
The LTV ratio is reduced to 55% if:
The loan tenure exceeds 30 years or extends beyond the borrower’s age of 65.
This applies to both HDB and private properties.
This reduced LTV requires a higher down payment (45%) and reflects the higher risk the lender faces with longer repayment periods.
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