Bank Valuation and How It Shapes Your Loan

Glossary 3 min read Last reviewed
For: Students of the marketFirst-time buyers
Source: IRAS, MAS, URA
TL;DR
The bank valuation is a bank-appointed valuer's assessment of a property's market worth, used to size your loan. Your maximum loan is the LTV limit applied to the lower of the purchase price or the...
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Quick Definition
The bank valuation is a bank-appointed valuer's assessment of a property's market worth, used to size your loan.

What Does It Mean?

The bank valuation is a bank-appointed valuer's assessment of a property's market worth, used to size your loan. Your maximum loan is the LTV limit applied to the lower of the purchase price or the valuation. If you agree to pay above valuation, the shortfall (similar to Cash Over Valuation on HDB) must be covered in cash, since the loan is capped at the valuation.

Why It Matters

The bank valuation, not the price you agree, caps your loan. If you offer above valuation, the gap must be paid in cash on top of your down payment — a shortfall that catches buyers off guard in hot markets, exactly like Cash Over Valuation does for HDB resale flats.

Where to Find This on ShiokNest

Look for the tooltip icon next to this metric on ShiokNest for a quick reminder of its definition.

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Frequently Asked Questions

What happens if I pay above the bank valuation?
Your loan is capped at the LTV limit applied to the valuation, so any amount above valuation must be paid in cash on top of your normal down payment.
Can I get a second valuation?
Different banks appoint different valuers, so valuations can vary. Shopping your loan around may yield a higher valuation and therefore a larger loan.
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This glossary article is auto-generated from ShiokNest's financial data and updated periodically. Rates and figures are current as of July 2026. Check official sources for the latest.