By Winfred Quek · CEA R073319H · Published 4 November 2026
Facts verified: 2 November 2026 · Sources listed below
Key Takeaways
- • The maximum loan for a second property is the lower of the MAS LTV cap and what TDSR allows.
- • The LTV cap is 45% with one outstanding housing loan (25% if the tenure is over 30 years or the loan runs past age 65), and 35% or 15% with two or more.
- • TDSR counts all monthly debts, including the first mortgage and the new loan tested at 4% or higher, within 55% of gross income.
- • Either way, at least 25% of the price must be paid in cash.
You already have a home loan, and you are looking at a second property. The question is simple: how much will a bank lend? The answer comes from two separate tests that are easy to mix up. One looks at how many housing loans you have. The other looks at what your income can carry.
This page walks through them in order, with one worked example using assumed figures. It covers the loan side only, and it is general information, not advice. For the stamp duty side, see second property financing and ABSD. For your own numbers, ask your bank or a licensed mortgage adviser.
Step 1: Count your outstanding housing loans
MAS ties the Loan to Value tier to the number of outstanding housing loans a borrower has. So the first job is to count them correctly. Count loans, not properties.
MAS Notice 632 defines an outstanding credit facility as a loan for buying residential property, or a refinancing of one, from HDB, a bank or a licensed moneylender, in your name or jointly with another borrower. It counts when the funds have been disbursed but not fully repaid, and also when the funds have not yet been disbursed.
So a home you have fully paid off adds nothing to the count, while a loan approved but not yet drawn down, for example on a property under construction, can still count.
Your bank does not rely on your word. The notice requires it to check credit bureaus and HDB records when you apply.
Source: MAS Notice 632, Residential Property Loans, checked 2 November 2026.
Step 2: Find the LTV ceiling
Once you know the count, the tier follows. The table is MAS's, for residential property where the option to purchase was granted on or after 6 July 2018.
| Outstanding housing loans | Standard LTV limit | Lower LTV limit | Minimum cash downpayment |
|---|---|---|---|
| None | 75% | 55% | 5% at 75%, 10% at 55% |
| 1 | 45% | 25% | 25% |
| 2 or more | 35% | 15% | 25% |
The lower limit applies if the loan tenure exceeds 30 years (25 years for an HDB flat) or if the loan runs past age 65. For joint borrowers, MAS uses the income weighted average age. The maximum tenure is 35 years for non HDB property and 30 years for HDB flats. The full tenure and age mechanics are in our guide to LTV limits by loan count and tenure.
The percentage is applied to a value, not the headline price. Notice 632 uses the lower of the adjusted purchase price (after discounts and rebates) and the current market valuation. If the bank values the unit below your price, you fund the difference.
Source: MAS, Loan Tenure and Loan to Value Limits, checked 2 November 2026.
Step 3: Find the income ceiling
LTV says nothing about your pay. The second test is the Total Debt Servicing Ratio, or TDSR. MAS sets the threshold at a maximum of 55% of the borrower's monthly income for loans where the option to purchase was granted on or after 16 December 2021. If your ratio is above that, the loan has to be cut.
The ratio is your total monthly debt obligations divided by your gross monthly income. For a second property, three things matter.
- Your first mortgage is in the numerator. MAS counts all outstanding obligations, including other property loans, car, student and renovation loans, and credit cards. For cards it uses the minimum due on the latest statement.
- The new loan is tested at a higher rate. For residential loans the medium term rate is the higher of a 4% floor or the thereafter interest rate. MAS says the floor applies to the loan under application, not to your existing property loans. In a 2022 parliamentary reply, MAS also said lenders must use the highest rate applicable over the loan tenor when market rates sit above the floor.
- Some income is haircut. Banks apply a minimum 30% haircut to variable income such as commission, bonus and allowance, averaged over the preceding 12 months, and to rental income, which needs a stamped tenancy agreement.
If the property you are buying is an HDB flat, or an Executive Condominium still within its minimum occupation period, the MSR applies as well. It caps property loan repayments at 30% of gross monthly income, and MAS counts all of the borrower's property loans in it. For how the three tests interact, see how TDSR, MSR and LTV work together. For why a bank calculator can overstate your room, read the TDSR stress test explained.
Source: MAS, Calculating TDSR, checked 2 November 2026.
Step 4: Take the lower of the two
Your maximum loan is the smaller of the LTV amount and the TDSR amount. The example below shows why you need both. All figures are assumed, for illustration only, and are not a client case or a bank quote.
Assumptions. A private property priced at $1,400,000, with a valuation equal to the price. A 30 year tenure that ends before age 65, so the standard LTV tier applies. Existing monthly debts of $2,700: a first home mortgage instalment of $2,000, a car loan of $600 and a credit card minimum of $100. All income is fixed salary. At 4% over 30 years, every $1,000,000 borrowed costs about $4,774 a month.
| Case (assumed) | Gross monthly income | LTV cap | TDSR cap | Maximum loan |
|---|---|---|---|---|
| A: one outstanding loan | $15,000 | 45% = $630,000 | ($8,250 less $2,700) = $5,550 room, about $1,162,000 | $630,000, set by LTV |
| B: one outstanding loan | $10,000 | 45% = $630,000 | ($5,500 less $2,700) = $2,800 room, about $586,000 | About $586,000, set by TDSR |
| C: first loan fully repaid | $10,000 | 75% = $1,050,000 | ($5,500 less $700) = $4,800 room, about $1,005,000 | About $1,005,000, set by TDSR |
Case A earns plenty but is stopped by the LTV tier. In case B the income test bites first. Case C has B's pay, but with the first loan gone the tier resets to 75% and the $2,000 instalment leaves the debt total, so the loan is far larger.
One trap sits in case B. Stretching the tenure to 35 years lifts the TDSR cap to about $632,000. But a tenure over 30 years drops a second loan to the 25% tier, which is $350,000 on this price. The longer loan ends up smaller. Check both tests at each tenure before you pick one.
Step 5: Add up the cash you need
The loan is only part of the picture. The gap between the price and the loan is yours to fund, and for a second loan at least 25% of the price must be a cash downpayment. In case A that is $350,000 of the $770,000 gap. In case B it is $350,000 of an $814,000 gap. In case C, with the 75% tier, the minimum cash is 5%, or $70,000 of a $395,000 gap.
Above the cash minimum, CPF may help where CPF's own rules allow, and those rules tighten for a second property. Our guide to CPF rules for a second property sets them out.
ABSD is a separate bill to IRAS, not part of the loan. It follows the number of residential properties you own and your buyer profile, and is charged on the higher of price or market value. IRAS lists 20% for a Singapore Citizen's second residential property and 30% for a Singapore Permanent Resident's, for purchases on or after 27 April 2023. On a $1,400,000 purchase, 20% is $280,000, before Buyer's Stamp Duty and legal costs. None of the figures above include these costs.
Source: IRAS, Additional Buyer's Stamp Duty, checked 2 November 2026.
What changes if the first loan is repaid or the first home is sold
This is where the loan count and the property count come apart. Fully repaying a loan stops it being an outstanding facility under the Notice 632 definition, so the LTV tier can move back. ABSD is different. IRAS counts properties owned, so a paid up home still counts as your first property for ABSD.
If you still owe money but are selling, Notice 632 lets the bank apply the LTV as though you had no such loan, provided you show before the new loan is disbursed that you are following through. The evidence depends on what you own:
- A private property: a sale and purchase agreement signed by you and the buyer, with an IRAS certificate showing stamp duty has been paid.
- An HDB flat, when you buy private: a letter from HDB approving the sale of the flat.
- An HDB flat or an EC within its minimum occupation period, when that is what you buy: a signed undertaking to HDB to complete the sale of the other property, plus a written declaration.
- A loan you have discharged: the bank can treat it as gone.
For TDSR, MAS's explainer has a similar carve out, so the old loan's instalment can drop out of your debt total in the same situations. Each bank applies its own checks on top, so ask early which documents it wants and when.
Source: MAS Notice 632 (Amendment) 2025, paragraphs 8 and 9, checked 2 November 2026.
Common mistakes, and questions to ask the bank
- Checking only one test. A calculator that shows the income side can hide a lower LTV cap, and the reverse.
- Using today's rate. The bank tests the new loan at 4% or the thereafter rate, whichever is higher.
- Forgetting undrawn loans and small debts. A loan not yet disbursed, a car loan or a card minimum all count.
- Counting rent or bonuses in full. Variable and rental income face a minimum 30% haircut.
- Stretching tenure to fit the income test. Past 30 years, a second loan falls to 25% LTV.
Before you make an offer, it helps to ask your bank or a licensed mortgage adviser:
- Which LTV tier will you place me in, and which loans did you count?
- Which value will you use, price or valuation, and what will the valuation be?
- How will you treat my first loan if I am selling that home, and what documents do you need?
- What rate and tenure did you use for the TDSR test, and how did you treat my variable income?
Frequently asked questions
What is the maximum loan for a second property in Singapore?
It is the lower of two limits. MAS caps the loan at 45% of the lower of price and valuation with one outstanding housing loan, or 25% if the tenure is over 30 years or the loan runs past age 65. Separately, total monthly debts, with the new loan tested at 4% or higher, must stay within 55% of gross monthly income.
What is the minimum cash downpayment for a second property loan?
MAS sets it at 25% of the price for a borrower with one or more outstanding housing loans. With no outstanding housing loan it is 5% at the 75% LTV limit and 10% at the 55% limit.
Does fully repaying my first home loan reset the LTV tier?
MAS Notice 632 treats a loan as outstanding while its funds are disbursed but not fully repaid, or not yet disbursed. On that wording, a fully repaid loan stops counting. ABSD is counted by properties owned, so it is separate. Confirm the timing with your bank.
What interest rate do banks use to test TDSR on a second property loan?
For residential loans, MAS says the medium term rate is the higher of a 4% floor or the thereafter interest rate. The floor applies to the loan under application, not to your existing property loans.
Does the MSR apply when I buy a second property?
Only if the property is an HDB flat or an Executive Condominium still within its minimum occupation period. The MSR then caps property loan repayments at 30% of gross monthly income. A private property, or an EC after its minimum occupation period, is tested on TDSR only.
Want to see how the tiers and the income test apply to your case?
Share how many home loans you have, your rough income and debts, and the price range you are considering, and Winfred will walk you through the MAS limits so you can see the numbers. For your actual loan amount, speak to your bank or a licensed mortgage adviser. General information only.
Ask Winfred on WhatsApp Book a free 30 minute callWinfred Quek, CEA R073319H, Crestbrick Pte Ltd (L3010886H). General information as at 2 November 2026, not legal, financial, tax or property advice. Figures are from MAS, IRAS and MoneySense pages and may change; the MAS pages were last updated between 2021 and 2025. The worked example uses assumed figures. This page makes no price or interest rate forecast.