By The Address desk · Last verified 28 September 2026

Three limits decide how much you can borrow for a home in Singapore. The Loan-to-Value (LTV) limit caps the loan at 75% of the price or valuation, for HDB loans and bank loans alike since 20 August 2024. The Mortgage Servicing Ratio (MSR) caps repayments on an HDB flat or EC at 30% of gross monthly income. The Total Debt Servicing Ratio (TDSR) caps all your monthly debt repayments at 55% of income. The HDB loan charges 2.6% a year, 0.1 percentage points above the CPF Ordinary Account rate; bank rates move with the market.

Quick facts

• LTV: up to 75% for both HDB and bank loans on a first home loan.
• MSR: repayments up to 30% of income for HDB flats and ECs.
• TDSR: all debt repayments up to 55% of income.
• HDB loan interest: 2.6% a year, pegged to the CPF OA rate.
• A bank loan needs at least 5% of the price in cash.
• The LTV falls for second and later housing loans.

What do the three limits do?

Limit	What it caps	Level
LTV	The loan, as a share of the price or valuation, whichever is lower	75% with no other housing loan
MSR	Monthly repayments on property loans, as a share of gross income	30% (HDB flats and ECs)
TDSR	All monthly debt repayments, as a share of gross income	55%

The lowest of the three sets your real limit. A car loan counts towards the TDSR, so it can reduce what you can borrow for a home even if the MSR looks fine.

When is the LTV lower?

With a bank loan, a lower LTV of 55% applies if the loan runs beyond 30 years (25 years for an HDB flat) or past the borrower’s 65th birthday. For a second housing loan, the bank limit falls to 45% (or 25%), and for a third to 35% (or 15%). For HDB loans, the LTV is also pro-rated down if the remaining lease doesn’t cover the youngest buyer to age 95.

How do the downpayments differ?

With a 75% loan, you pay 25% yourself either way. With an HDB loan, the whole 25% can come from CPF. With a bank loan, at least 5% of the price must be in cash, and the other 20% can come from CPF or cash.

The WahLiao Verdict

The HDB loan buys certainty: a rate that moves only with the CPF rate and no cash downpayment. A bank loan can be cheaper when market rates are low, but it resets and needs cash upfront. Work out the MSR and TDSR before viewing flats, and clear the car loan first if you can.

Questions people ask

Can I switch from an HDB loan to a bank loan?

Yes, you can refinance to a bank later. You can’t switch back from a bank loan to an HDB loan.

Why can’t I borrow the full 75%?

Usually because the MSR or TDSR caps your repayments below what a 75% loan would need.

Is the HDB loan rate fixed?

It’s pegged at 0.1 percentage points above the CPF Ordinary Account rate, so it changes only if that rate changes.

Does the valuation matter?

Yes. The LTV applies to the lower of the price and the valuation, so paying above valuation means more cash.

Sources: MoneySmart, HDB loan guide; Dollars and Sense on LTV limits and TDSR; PropertyGuru on MSR and TDSR and downpayments; EdgeProp on the HDB loan rate. This is general information, not financial advice.

Read next: HDB Housing Grants · Buyer’s Stamp Duty and ABSD · Back to The Address

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