ABSD Second Property: Bank Rate Comparison Guide | Homejourney
ABSD for second property financing implications significantly impact your loan affordability, with Singapore Citizens facing 20% ABSD on second homes while banks like DBS and OCBC offer competitive SORA-based rates starting from 3.5% p.a. This guide compares major bank rates, helping upgraders and investors navigate ABSD second property costs. At Homejourney, we prioritize your safety by verifying rates in real-time for confident decisions.
Whether you're an HDB upgrader eyeing a condo in Punggol or an investor adding a second home, ABSD raises upfront costs, squeezing loan-to-value (LTV) ratios. Use Homejourney's bank rates comparison to find the best additional property financing options. This cluster article supports our pillar on Singapore property financing, focusing on tactical bank comparisons amid 2026 ABSD rules.
Current ABSD Rates for Second Properties in 2026
Singapore Citizens (SC) pay 0% ABSD on their first property, 20% on the second, and 30% on third or subsequent properties. Permanent Residents (SPR) pay 5% on first, 30% on second, and 35% on third+. Foreigners face 60% on any property.[4][2][5] For a S$1.5M condo as a second property, an SC pays S$300,000 ABSD, plus Buyer's Stamp Duty (BSD) of about S$44,600, totaling S$344,600 upfront.[2][3]
This cash outlay reduces funds for downpayments, often requiring 25% LTV from cash for second properties under TDSR rules. Homejourney verifies these rates from IRAS sources, ensuring transparency. Insider tip: HDB owners buying private property count it as a second home, triggering ABSD—sell first if possible to reset your count. See our related guide on Buy First or Sell First: Upgrade Financing Strategies to Boost Approval Odds | H... for strategies.
How ABSD Affects Second Property Financing
Second home ABSD lowers your effective borrowing power since banks cap loans at 75% LTV for second properties (55% if over 30 years old). High ABSD means more cash upfront, pushing you toward banks with flexible cashback or low processing fees. For upgraders, this often means refinancing your first property to free equity.
Example: Upgrading from a S$600K HDB to a S$1.8M condo in Tengah. ABSD at 20% = S$360,000. With 25% downpayment (S$450,000), you need S$810,000 cash total. Banks assess TDSR at 55% of income; use Homejourney's mortgage calculator to check eligibility instantly.
The chart below shows recent interest rate trends in Singapore:
As seen in the chart, 3M SORA has hovered around 3.0-3.2% in late 2025, influencing bank package rates. Floating SORA loans save on lock-in penalties for short-term holds, ideal for investment property tax plays.
Bank Rate Comparison for ABSD Second Property Buyers
Compare top Homejourney partner banks for second property loans. Rates as of Jan 2026; always verify on Homejourney bank-rates for live updates. Focus on SORA PEAKR, fixed, and board rates with 2-3 year lock-ins.
| Bank | Key Product | Effective Rate (SORA + Spread) | LTV for 2nd Prop | Cashback |
|---|---|---|---|---|
| DBS | SORA PEAKR 3yr | 3.50% (3M SORA + 0.50%) | 75% | Up to 0.5% (S$10K on S$2M) |
| OCBC | 360 Fixed 2yr | 3.45% fixed | 75% | 0.35% + promo rebates |
| UOB | SORA Flexi 3yr | 3.48% (3M SORA + 0.48%) | 75% | 0.4% tiered |
| HSBC | HomeSmart SORA | 3.55% | 70% | 0.3% + lawyer fees |
| Standard Chartered | Fixed 3yr | 3.60% | 75% | 0.2% |
DBS leads for upgraders with highest cashback, offsetting ABSD costs. OCBC suits fixed-rate seekers. Compare all 11 banks (including Maybank, CIMB) on Homejourney—submit one Singpass application for multi-bank offers.
Pros & Cons Snapshot
- DBS: Best cashback, fast Singpass approval; cons: higher penalty (1.5% on break).
- OCBC: Strong fixed options; cons: stricter income docs for investors.
- UOB: Flexible refinancing; ideal for upgrader ABSD scenarios.
Maybank and RHB offer competitive rates for foreigners (despite 60% ABSD), with spreads under 0.6%.[1] Public Bank and Hong Leong excel in processing speed (under 7 days).
Actionable Steps: Secure Financing Despite ABSD
- Calculate ABSD/BSD: Use IRAS rates; for S$1.2M second condo, SC pays S$240K ABSD + S$37K BSD.
- Check Eligibility: Input income/debts on Homejourney calculator—TDSR limits at 55%.
- Compare Rates: Visit https://www.homejourney.sg/bank-rates for real-time DBS vs OCBC vs UOB.
- Apply Multi-Bank: One form via Singpass; banks compete for your loan.
- Time Your Purchase: Track SORA on Homejourney; lock fixed if rates rise.
Pro tip: For Tengah or Punggol upgraders, pair with Projects Directory for project insights. Refinance post-purchase via Homejourney for better rates. Disclaimer: Rates fluctuate; consult professionals. Homejourney provides info, not financial advice.
Homejourney: Your Safe Path to Second Property Financing
Homejourney builds trust with verified rates, Singpass integration, and multi-bank applications—letting lenders bid for you. Search budget-friendly options on property search. Link to our pillar: ABSD for Second Property: Financing Guide | Homejourney for full ABSD guide.
FAQ: ABSD for Second Property Financing
Q1: How much ABSD for second property as Singapore Citizen?
A: 20% of purchase price or market value. E.g., S$1.5M condo = S$300,000 due within 14 days.[4][2]
Q2: Which bank has best rates for second home ABSD financing?
A: DBS at 3.50% SORA effective; compare live on Homejourney bank-rates. OCBC fixed at 3.45% close second.[Homejourney data]
Q3: Can I finance ABSD for investment property?
A: No, ABSD is cash payable; loans cover purchase price only. Use equity from first property.[IRAS]
Q4: TDSR impact on upgrader ABSD second property?
A: 55% income cap includes all debts; Homejourney calculator shows if viable. See .
Q5: How to apply for second property loan safely?
A: Use Homejourney's one-click multi-bank app with Singpass—fast, secure, no spam.
Ready to compare? Start at https://www.homejourney.sg/bank-rates for the best ABSD for Second Property Financing Implications: Bank Rate Comparison Guide. Homejourney ensures safe, transparent transactions.
