MAS Residential Home Loan Information

Housing Loan Information – The MAS has stipulated guidelines on how much loan one qualifies and this is usually stated in terms of Loan-to-Value (LTV). This is the amount one can borrow to finance the property and is expressed as LTV ratio. For e.g. a LTV ratio of 75% means one can borrow up to 75% of the property value or price, whichever is lower. The remaining 20% can be paid via a combination of cash or CPF and remaining 5% must be paid in cash only.

The number of years needed to pay off the housing loan (loan tenure) will also affect the LTV ratio. If the loan teniure extends beyond age 65, the LTV ratio will be reduced, thus the amount one can loan from the bank is also reduced.

The number of existing housing loans one has will also affect the LTV ratio. A second home loan will see the LTV ratio reduced from 75% to 45% and the third home loan will have the LTV ratio reduced further to 25%.

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