Home buyers borrowing less as mood of prudence takes hold

Buyers are putting proportionally more cash down when purchasing a home and cutting back on borrowings as a new mood of prudence takes hold.

The safety-first approach is reflected in data from the Monetary Authority of Singapore (MAS) which shows that loan-to-value (LTV) ratios have fallen sharply.

An LTV ratio of 80 means the buyer has borrowed 80per cent of the home value.

The MAS found that loans with an LTV ratio of more than 80 per cent have fallen to 4.9 per cent of all outstanding mortgages in the three months to Sept 30 - the lowest since 2004.