Second Property Loan in Singapore: How LTV Limits and Your Existing Loan Affect It

Key takeaways

• An outstanding housing loan is what lowers the LTV limit, not simply owning a second property.
• With one outstanding housing loan, the MAS limit is 45% (or 25% where the lower limit applies), and at least 25% of the value must be paid in cash.
• Longer tenures and loans that run past age 65 trigger the lower LTV limit.
• The new loan must also pass the TDSR test, which counts your existing property loan, car loans, credit card and other debts against your income.
• Stamp duties are assessed separately from the loan limits and need their own check with IRAS or your lawyer.

Background

The loan-to-value (LTV) ratio is the loan amount as a percentage of the property’s value. MAS gives the example of a S$150,000 loan on a property valued at S$1,000,000, which is an LTV of 15%. MAS sets the maximum LTV that financial institutions can lend, and the limit depends on the loan tenure, the borrower’s age, the borrower’s existing loans and whether the borrower is a shell company.

For a homeowner planning a second property, the existing loan is usually the factor that matters most. It lowers the amount a bank can lend for the next purchase and raises the share that must come from your own cash. This article sets out the MAS limits and the related affordability checks. It does not replace a bank’s assessment of your own application.

Latest guidance

The figures in this article were read on MAS’s official explainer pages on 3 November 2026. The Loan Tenure and Loan-to-Value Limits and Rules for New Housing Loans pages show “last updated” dates of 27 March 2024. The Calculating TDSR page was last updated on 29 September 2022, and the TDSR Thresholds page on 16 December 2021.

The LTV table applies to loans for residential properties where the OTP is granted on or after 6 July 2018. The 55% TDSR threshold applies to property loans where the OTP is granted on or after 16 December 2021. This article does not report a new policy change. Rules can be revised, so check the current MAS pages and your bank’s assessment at the time you buy.

Who is affected

This guide is for individuals who still have a housing loan on their current home and are thinking about buying another residential property with a bank loan, whether to keep the first home, rent it out or move later.

It is also relevant if you have helped someone else service a housing loan. MAS states that a person brought in to help a borrower meet the TDSR threshold is treated as a co-borrower rather than a guarantor, and that lower LTV limits will apply to that person’s future housing loan applications.

Who is not affected

• Buyers with no outstanding housing loan, who fall under the 75% (or 55%) LTV row.
• Borrowers who are shell companies or not individuals, for whom MAS sets a 15% LTV limit; see the guide to buying property through a company.
• Loans from HDB, which follow HDB’s own loan rules rather than the bank limits in the table.
• Refinancing an existing loan, which has its own MAS rules.

This article does not cover stamp duty rates or eligibility to buy a particular property type.

What remains unchanged

• The TDSR threshold of 55% of gross monthly income still applies to the new loan, alongside the LTV limit.
• For residential property purchase loans, banks compute TDSR using the higher of a 4% per annum floor or the thereafter interest rate; MAS applied the 4% floor to OTPs granted on or after 30 September 2022.
• The Mortgage Servicing Ratio cap of 30% applies only to loans for an HDB flat, or an executive condominium still within its minimum occupation period.
• MAS caps the loan tenure at 30 years for HDB flats and 35 years for non-HDB properties.
• Stamp duties and CPF rules are assessed separately from the loan limits.
• No loan amount, rental income or price outcome is guaranteed.

Planning considerations

1. Confirm how many housing loans are outstanding

The LTV row that applies depends on the number of outstanding housing loans you have when you apply. Include loans on property you co-own. MAS’s notice to finance companies, for example, refers to an outstanding facility on other residential property the borrower owns “either by itself or jointly”, and treats it as no longer outstanding once it has been discharged. If you share a loan with a spouse or family member, or have helped someone service a loan, ask the bank how it will count your loans before you take an option.

2. Work out the cash you need, not just the loan

As an illustration only, take a property valued at S$1,500,000. With no outstanding housing loan, a 75% LTV loan would be up to S$1,125,000, with at least 5% (S$75,000) in cash. With one outstanding housing loan, a 45% LTV loan would be up to S$675,000, and at least 25% (S$375,000) must be paid in cash. The balance of the down payment would still have to come from cash or, where you are eligible, CPF savings. The actual loan can be lower than the LTV cap once your income and TDSR are assessed, so ask your bank to confirm the basis and amount for your case.

3. Check whether tenure or age lowers the limit

MAS applies the lower LTV limit if the loan tenure exceeds 30 years (25 years for an HDB flat), or if the loan period extends beyond the borrower’s age of 65. With one outstanding housing loan, that means 25% instead of 45%. For joint borrowers, MAS uses an income-weighted average age. A shorter tenure raises the monthly instalment, so tenure, age and TDSR need to be checked together.

4. Run the TDSR with your existing loan included

TDSR counts all monthly debt obligations, including property loans, car loans, student loans, renovation loans and credit card loans, against gross monthly income, and the threshold is 55%. For the loan being applied for, banks use the higher of a 4% floor or the thereafter rate. MAS requires a minimum 30% haircut on variable income and on rental income, and rental income has to be supported by a stamped tenancy agreement with at least six months remaining. Do not plan on the full rent from your first home counting towards the new loan. The TDSR affordability guide covers the wider budget review.

5. If you are selling the first property, plan the sequence

MAS allows the existing property loan instalment to be excluded from the TDSR calculation in set situations. For a private property, the borrower provides a sale and purchase agreement signed by both seller and buyer, with the IRAS stamp duty certificate. For an HDB flat, it is a letter from HDB approving the sale. The instalment can also be excluded once the existing loan has been discharged. The LTV row depends on whether a loan is still outstanding, so ask your bank how a sale in progress will be treated before you commit to both transactions. The private property resale timeline can help with the sale side.

6. Budget for stamp duties and CPF separately

Stamp duty is assessed separately from the loan limits. Check the Buyer’s Stamp Duty and any Additional Buyer’s Stamp Duty position for your own purchase with IRAS or your lawyer before you commit. The Buyer’s Stamp Duty guide and the guide to using CPF for private property explain what to verify. The second property planning page brings these checks together.

7. Review the whole plan before you shortlist

Loan limits, cash, CPF, stamp duty, holding costs and a realistic rent assumption all need to work at the same time. Get a bank’s in-principle assessment first, then test the plan against a vacancy period or a change in household income. If you would like help mapping the purchase and timing, the second property planning page explains how Melvin supports that review. Loan and tax decisions remain with your bank, IRAS and lawyer.

FAQ

This article provides general educational information. Loan eligibility, CPF usage and stamp duty depend on your own circumstances and should be confirmed with your bank, CPF Board, IRAS or a professional adviser before a binding commitment is made.