Deciphering Property Loan-to-Value (LTV) Limits: What You Need to Know
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Owning a private property in Singapore is a significant milestone for anyone, but accomplishing this endeavour certainly comes packed with a whole lot of complexities, including property financing. One crucial aspect to understand in this situation is the Loan-to-Value (LTV) ratio, which plays a pivotal role in determining the amount of financing you can obtain for your private property purchase. In this comprehensive guide, we'll explore the factors affecting property Loan-to-Value (LTV) limits and how they impact your journey to obtain a housing loan for private property. Understanding Property Loan-to-Value (LTV) Ratio The Loan-to-Value (LTV) ratio is a key parameter used by lenders to assess the risk associated with a private property home loan. It represents the percentage of the property's value that can be financed through a loan. For example, if the LTV ratio is 80%, you can borrow up to 80% of the property's value, while the remaining 20% must be funded through...