The Singapore government has set a loan-to-value (LTV) limit for housing loans primarily to protect homebuyers from over-borrowing. In a summary, the maximum home loan hdb is defined by the LTV (loan-to-value) limit or percentage of the property’s price or market value (whichever is lower) approved by the respective financial institution.
After the government announced a further reduction by or tightening of LTV limits on residential property loans by 5% across the board and coupled together with other cooling measures in July 2018, the LTV for bank loans is now 75%. Buyers of upmarket projects such the Irwell Hill Residences and The Avenir will have to re-establish the LTV limit.
Most recently, the government announced another round of cooling measures with effect from 16 December 2021 and inclusive of lowering the LTV for HDB housing loans from 90% to 85%.
With a lower LTV, every buyers will have to commit to a bigger cash and/or CPF for downpayment when buying a property. This is regardless of whether purchasing first, second or third property and regardless of new condo or HDB.
Potential buyers for the upcoming The Arden and Sceneca Residence will therefore have to factor such additional 5% as further cash payment.
CDL to develop Piccadilly Grand, Piccadilly Grand location in cityfringe in District 08
