ABSD for Second Property: Financing Implications Guide | Homejourney
ABSD for second property adds 20% stamp duty for Singapore Citizens buying beyond their first home, profoundly impacting additional property financing costs and loan strategies in 2026. This definitive Homejourney pillar guide breaks down rates, calculations, upgrader tactics, and bank loan options to help you navigate second home ABSD safely.
Whether you're an upgrader eyeing a condo after HDB or an investor assessing investment property tax, Homejourney prioritizes your trust with verified data from IRAS and practical financing advice. Discover how to minimize costs while securing optimal loans from DBS, OCBC, UOB, and more via our secure platform.
Table of Contents
- Executive Summary
- ABSD Basics for Second Properties
- 2026 ABSD Rates Table
- Financing Implications of Second Home ABSD
- Upgrader ABSD Strategies
- Investment Property Tax Breakdown
- ABSD Calculations & Real Examples
- Bank Loan Options Post-ABSD
- Homejourney Financing Tools
- FAQ: ABSD for Second Property
- Next Steps with Homejourney
Executive Summary: Why ABSD Matters for Your Second Property
In Singapore's 2026 property market, ABSD second property rules demand careful planning for financing. Singapore Citizens face 20% ABSD on their second residential property, up significantly from pre-2023 levels, making cash outlay a key hurdle before loans kick in.[1][2] This guide equips upgraders and investors with IRAS-verified rates, BSD+ABSD totals, TDSR impacts, and Homejourney-exclusive strategies.
Key takeaway: Time your sale first to potentially avoid ABSD, or budget 20% upfront while leveraging bank loans for the balance. Homejourney's bank rates page lets you compare DBS, OCBC, and UOB options instantly, ensuring transparent, safe decisions.
ABSD Basics: What It Means for Second Property Buyers
Additional Buyer's Stamp Duty (ABSD) is a tax on residential property purchases beyond your first, introduced to cool demand. For second home ABSD, Singapore Citizens pay 20% on the purchase price or market value (whichever higher), payable within 14 days of Option to Purchase (OTP).[1][2]
Unlike Buyer's Stamp Duty (BSD), which all pay, ABSD scales with buyer profile and property count. Permanent Residents hit 30% on seconds, foreigners 60%.[1][2] Homejourney verifies: Owning an HDB flat counts as your first, so buying a condo triggers second-property ABSD.
Insider tip: Joint purchases take the highest profile—e.g., SC + PR buying second triggers 20-30% based on the SC's count.[2] Always check via IRAS e-Stamping for precision.
BSD vs ABSD: Quick Comparison Table
| Duty Type | Who Pays | Rate for Second Property (SC) | Example S$1.5M Property |
|---|---|---|---|
| BSD | All buyers | Progressive up to 6% | ~$60,000[5] |
| ABSD | SC 2nd+ | 20% | S$300,000[1][2] |
Total for SC second property: ~S$360,000 on S$1.5M—plan financing accordingly via Homejourney bank rates.
2026 ABSD Rates for Second Properties
Rates effective post-2023 hikes remain in 2026: SC second property at 20%, no remission without selling prior.[1][2] Entities face 65%, foreigners 60%.[3]
Full ABSD Rates Table (IRAS 2026 Verified)
| Buyer Profile | 1st Property | 2nd Property | 3rd+ Property |
|---|---|---|---|
| Singapore Citizen | 0% | 20%[1][2] | 30% |
| Singapore PR | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity | 65% | 65% | 65% |
Source: IRAS, verified by Homejourney. Note: Higher profile in joint buys applies.[2] Use our mortgage calculator to factor ABSD into affordability.
Financing Implications of ABSD on Second Properties
ABSD upfront cash requirement shrinks your loan-to-value (LTV) capacity. Banks finance 75% max for second properties (vs 90% first), post-ABSD outlay.[4] TDSR caps servicing at 55% income, MSR 30% for HDB—ABSD eats into equity for downpayment.
Practical impact: S$1.5M second condo requires ~S$360K cash (ABSD+BSD+5% down), leaving S$1.14M for loan. Homejourney tip: Use CPF Ordinary Account for downpayment post-ABSD, but check ACC limits.
Interest rates tie in—higher ABSD means tighter budgets amid SORA fluctuations. View trends below for timing:
The chart below shows recent interest rate trends in Singapore:
As seen, 3M SORA at ~3.2% in 2026 pressures additional property financing. Compare fixed vs floating on Homejourney bank rates.
LTV Limits Post-ABSD Table
| Property Type | 1st Property LTV | 2nd Property LTV |
|---|---|---|
| HDB (Bank Loan) | 90% | 75% |
| Private (Condos) | 90% | 75% |
Upgrader ABSD Strategies: Sell First or Buy First?
For HDB-to-condo upgraders, upgrader ABSD hits if you own during OTP. Solution: Contract to sell your HDB before new OTP—resets to first property, 0% ABSD.[2] See Buy First or Sell First Guide.
Homejourney insight: In hot markets like Toa Payoh or Punggol, sell first secures S$500K+ proceeds for ABSD buffer. Risk of buy-first: Dual ownership penalties, but bridge loans from OCBC/HSBC cover gaps.
Actionable steps:
Verify eligibility on IRAS portal.
List HDB on Homejourney property search.
Secure pre-approval via bank-rates Singpass application.
Local example: Upgrading from Punggol HDB (S$700K) to Serangoon condo (S$1.8M)—sell first saves S$360K ABSD.[2]
Investment Property Tax: ABSD + Ongoing Costs
Investors face investment property tax via 20% ABSD (SC second), plus 12-24% rental income tax (less expenses). No capital gains tax, but SSD if sell within 3 years.[1]
Financing angle: Banks scrutinize rentals for TDSR—max 55% debt. Homejourney data: Yields 3-4% in OCR condos barely cover SORA loans at 3.5%.
Strategy: Joint investment with spouse (both first-timers) dodges ABSD, but profiles merge post-purchase.[2] Track via projects directory for yields.
ABSD Calculations & Real Singapore Examples
Formula: ABSD = Property Value × Rate. Add BSD progressive: 1% first S$180K, 2% next S$180K, 3% S$640K, 4% S$500K, 5% S$1.5M, 6% above.[5]
Example 1: SC upgrader, S$1.5M condo (second property).
BSD: ~S$60K
ABSD: S$1.5M × 20% = S$300K
Total: S$360K cash needed.[1][2][5]
Example 2: PR couple, S$2M investment (second for both).
ABSD: S$2M × 30% = S$600K + BSD S$92K = S$692K.[1][2]
Example 3: Toa Payoh resale HDB owner to Bedok condo S$1.2M.
If sell first: 0% ABSD.
Buy first: S$240K ABSD—finance via UOB bridge loan.[2]
Use Homejourney's calculator for custom scenarios: mortgage eligibility tool.
Bank Loan Options After ABSD Payment
Post-ABSD, compare HDB vs bank loans. Banks offer 75% LTV, 30-year max tenure for seconds, SORA pegs ~3.5%.[4] Partners: DBS (competitive fixed), OCBC (flexi), UOB (cashback).
Refinancing tip: If ABSD stretched you, refi after 2 years—see HDB vs Bank Comparison. Apply multi-bank via Homejourney for best rates.
- DBS: 3M SORA + 0.6%
- HSBC: Fixed 2 years ~3.2%
- Maybank: Investor-friendly
All via Singpass on Homejourney—one form, multiple offers.
Homejourney Tools for Safe ABSD Financing
Homejourney builds trust with verified tools:
- Instant ABSD/BSD calculator integrated with eligibility checker.
- Live rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank.
- Singpass/MyInfo auto-fill for secure, fast approvals.
- Connect to mortgage brokers for personalized second property financing advice.
Post-purchase: aircon services for maintenance. Search budgets on property search.
FAQ: ABSD for Second Property Financing
Q: Does owning HDB trigger second property ABSD for condo?
A: Yes, 20% for SC. Sell HDB first to reset.[2]
Q: Can I finance ABSD?
A: No, cash or CPF only. Loans cover balance post-duty.[1]
Q: Upgrader ABSD remission?
A: If sell within 6 months of new buy, apply IRAS refund.[2] Details in FAQs.
Q: Best bank for second home ABSD financing?
A: Compare on Homejourney—UOB often wins for upgraders.
Q: Foreigner second property ABSD?
A: 60% flat, total ~66% with BSD.[3]
Q: CPF for ABSD?
A: Yes, OA up to available balance post-first property grant. See CPF Guide.
Disclaimer: This is general info; consult IRAS/banks. Homejourney verifies data for safety, not financial advice.
Next Steps: Secure Your Second Property with Homejourney
1. Calculate ABSD + loan eligibility at Homejourney calculator.
2. Compare rates from all major banks.
3. Apply via Singpass—one click, multi-offers.
4. Search verified listings on property search.
5. Connect with our brokers for tailored ABSD second property plans.
Homejourney ensures transparent, safe journeys—your trust drives us. Start today for confident additional property financing.
