The Loan-To-Value (LTV) is the ratio of the loan to the value of the property. The maximum LTV is 80% for bank loans. This means that if property X is valued at $1,000,000, you are allowed to loan a maximum of $800,000.
The Cash-Over-Valuation (COV) means the amount of cash you pay over the valuation of the property. If the purchase price of the property X is $1,100,000 but its valuation is $1,000,000, you will need to fork out the difference of $100,000 (COV) in cash.
Therefore, the total amount of cash you need to set aside is at least $100,000. On top of that, you will need to fork out a minimum of 5%, $50,000, as part of the down payment. The rest of the 15% down payment can be CPF or cash.
Below is a chart showing you the different LTV depending on how many mortgage loans you have.
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