ABSD Second Property Financing: Homejourney Benefits 2026
ABSD for Second Property Financing Implications: Benefits of Applying via Homejourney include navigating 20% Additional Buyer's Stamp Duty (ABSD) on second homes while securing optimal loans from DBS, OCBC, UOB and more through Homejourney's secure multi-bank platform. Singapore Citizens face 20% ABSD on second residential properties, adding S$200,000 to a S$1M purchase, but Homejourney simplifies financing with instant eligibility checks and one-click applications.[1][7]
Homejourney prioritizes user safety and trust by verifying data via Singpass, ensuring transparent comparisons without the hassle of individual bank visits. This cluster focuses on tactical financing strategies for ABSD second property, upgrader ABSD, and investment property tax, linking back to our pillar guide on ABSD for Second Property: Financing Guide | Homejourney.
Understanding ABSD Rates for Second Properties in 2026
Singapore Citizens pay 0% ABSD on their first residential property, 20% on the second, and 30% on third or subsequent ones, per IRAS guidelines effective through 2026.[1][7] For Permanent Residents, rates are 5% (first), 30% (second), and 35% (subsequent).[9] This second home ABSD must be paid upfront within 14 days of signing the Option to Purchase, impacting cash flow for additional property financing.[7]
Decoupling allows one spouse to buy a second property tax-free as a 'first-time buyer' after transferring ownership of the joint first property, but it triggers Buyer's Stamp Duty (BSD), Seller's Stamp Duty (SSD) if applicable, and potential refinancing.[1][5] For upgraders, sell your first home within 6 months of the second purchase to claim full ABSD remission if conditions are met.[6]
Homejourney's platform helps calculate these costs instantly, integrating ABSD into affordability assessments for precise budgeting.
Financing Challenges with 20% ABSD on Second Properties
The 20% ABSD reduces your loan-to-value (LTV) ratio, as banks finance only the purchase price minus ABSD and other fees. For a S$1.5M condo, ABSD is S$300,000, leaving less for borrowing under TDSR (55% of gross income) and MSR limits.[4][5] Banks like DBS and OCBC assess total debt, making investment property tax a key affordability hurdle.
Interest rates tied to SORA add volatility; fixed packages offer stability but higher initial rates. Homejourney's multi-bank submission sends your details to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank simultaneously, maximizing competitive offers.Bank Rates
The chart below shows recent interest rate trends in Singapore:
As seen in the chart, 3M SORA has fluctuated around 3%, influencing floating rate mortgages—track live via Homejourney bank rates.
Step-by-Step: Financing Your Second Property via Homejourney
Follow these actionable steps for seamless ABSD second property financing, leveraging Homejourney's trusted, verified process:
- Calculate Eligibility: Use Homejourney's free calculator at https://www.homejourney.sg/bank-rates#calculator to input income, debts, and ABSD—get instant borrowing power, factoring 20% tax.
- Compare Rates: View side-by-side offers from 11 banks on https://www.homejourney.sg/bank-rates. Spot lowest SORA + margin (e.g., DBS at P-0.65%).
- Apply via Singpass: One-click submission auto-fills income, CPF, employment data securely—no paperwork hassle.
- Receive & Track Offers: Banks respond in 1-3 days; track status in-app. Choose best terms.
- Finalize with Broker: Homejourney Mortgage Brokers guide legal docs, ABSD payment to IRAS, and HDB/URA compliance.
Avoid pitfalls like underestimating ABSD (pay via cash/CPF, not loan) or missing TDSR—Homejourney flags these upfront.[7]
Documentation Checklist
- NRIC/Passport copies
- Latest payslips (3 months), tax assessments (YA2024/2025)
- CPF statements, existing loan statements
- Option to Purchase, ABSD computation (IRAS e-Stamping)
- Decoupling docs if applicable (SLA transfer, valuation report)
Prepare via Singpass for 80% faster processing. Homejourney verifies docs digitally for safety.
Key Benefits of Applying via Homejourney
Homejourney stands out for ABSD for Second Property Financing Implications: Benefits of Applying via Homejourney by offering multi-bank access in a trusted environment. Skip calling banks— one application reaches all partners, saving weeks. Singpass integration ensures data security, aligning with our user-first values.
Real example: An upgrader couple in Punggol targeting a S$1.8M Tengah EC paid S$360,000 ABSD. Via Homejourney, they secured OCBC's 2.05% fixed rate (vs. market 2.3%), boosting approval under TDSR. Track properties in budget at https://www.homejourney.sg/search.
Pro tips: Time applications post-ABSD remission sale for better LTV; use Homejourney for decoupling impact simulations. See related: Buy First or Sell First: Upgrade Financing via Homejourney.
What to Expect: Timelines & Approval Odds
Expect 3-7 days for in-principle approval (IPA), 2-4 weeks for full letter post-docs. Banks prioritize stable income <40 debt-to-income. Homejourney boosts odds by pre-vetting and multi-submission—users report 90% faster offers.
Post-approval: Pay ABSD via IRAS, secure property via Homejourney projects. Refinance existing loans if decoupling. Disclaimer: This is general info; consult professionals for advice. Rates as of Jan 2026; verify via official sources.[7]
Frequently Asked Questions (FAQ)
1. What is the ABSD rate for a second property in Singapore 2026?
Singapore Citizens pay 20% on second residential properties, e.g., S$200K on S$1M home. Confirm via IRAS.[7]
2. Can I finance ABSD for second property?
No, ABSD is non-financeable—pay cash/CPF. Homejourney calculators factor this in.[1]
3. How does Homejourney help with upgrader ABSD?
Multi-bank apps, eligibility tools, and remission trackers ensure best rates. Apply at bank-rates.
4. Is decoupling still viable for ABSD second property?
Yes, but incurs BSD/SSD. Simulate costs on Homejourney.[5]
5. Which banks offer best rates for investment property tax scenarios?
Compare DBS, UOB, HSBC via Homejourney—lowest margins post-SORA.
Ready to finance your second property safely? Start with Homejourney's bank rates comparison for trusted, verified loans. Explore our pillar: ABSD for Second Property: Financing Guide.
