LTV & ABSD Guide for Singapore Investment Properties | Homejourney
LTV (Loan-to-Value) limits how much you can borrow against an investment property's value, while ABSD (Additional Buyer's Stamp Duty) adds significant upfront costs for second or subsequent properties. For Singapore investors, understanding these rules is crucial to assess affordability and cash flow. This Homejourney cluster article provides actionable insights on LTV and ABSD for Investment Property Guide, linking back to our pillar on property investment financing.
Why LTV and ABSD Matter for Investment Properties
Investment properties in Singapore—condos, landed homes, or non-HDB units—face stricter LTV and higher ABSD than primary residences. These measures from MAS and IRAS cool the market and prioritize housing for citizens. For example, a S$2 million condo as your second property triggers 20% ABSD (S$400,000), plus BSD, leaving less capital for other deals.[1][2][4]
Homejourney verifies this data from official sources, ensuring you make trusted decisions. Use our bank rates page to check LTV eligibility across DBS, OCBC, UOB, and more, with Singpass integration for instant calculations.
Current LTV Limits for Investment Properties (2026)
Singapore's LTV caps depend on your existing loans and property type. For bank loans on private investment properties:
- First-time borrowers: Up to 75% LTV if tenure ≤30 years or age <65.[1]
- With one or more outstanding loans: 45%-55% LTV, dropping to 15%-25% for repeat borrowers with multiple loans.[6]
- HDB loans (not for pure investments): Reduced to 75% from 80%.[2]
For a S$2 million condo as an investment (your second property), at 55% LTV, you borrow S$1.1 million, needing S$900,000 cash/CPF equity upfront—before duties.[1] Insider tip: Banks like HSBC and Standard Chartered assess LTV conservatively for investors; compare via Homejourney's multi-bank tool to find flexible options.
ABSD Rates Breakdown for Investors (2026)
ABSD applies on top of BSD and scales with buyer profile and property count. Key 2026 rates from IRAS:
[2][4] Rates unchanged since 2023 hikes. Joint purchases take the highest profile rate per property.[4] Example: SC with one property buying a second condo with a PR (zero properties)—20% ABSD applies.[4] Pay within 14 days of OTP or face penalties; lawyers handle e-stamping.[1]
Real example: Investing in a S$1.5 million condo in OCR (e.g., near Kovan MRT). ABSD at 20% = S$300,000; BSD ~S$42,600; total duties S$342,600. Factor into yield calculations—Homejourney's property search filters by budget post-duties.
Actionable Steps: Calculate Your Investment Costs
Follow this framework to evaluate deals:
- Assess Profile: Count existing residential properties via Singpass on IRAS portal.
- Compute ABSD/BSD: Use IRAS calculator: BSD tiers—1% (first S$180k), 2% (next S$180k), 3% (up to S$1m), 4% (above).[1]
- Check LTV: Input income/debts into Homejourney's mortgage calculator for TDSR (55%) and MSR compliance.
- Equity Needed: Property price - (LTV loan) + duties + fees. Aim for <30% of net worth per investment.
- Stress Test: Assume 4% SORA +1.5% margin; track via Homejourney.
Tip: For interest only loan or IO loan Singapore, pair with high LTV to maximize cash flow property. See our related article: IO Loan Singapore: Maximize Cash Flow for Investment Property | Homejourney .
Strategies to Optimize for Investors
To maximize cash flow property under LTV/ABSD constraints:
- Decouple Ownership: Sell primary residence first to reset ABSD clock (citizens).[4]
- Joint Ventures: Partner with zero-property holders, but highest profile applies.
- Refinance Existing: Boost equity for downpayments; compare DBS vs UOB on Homejourney bank rates.
- Target High-Yield Areas: OCR condos (e.g., Serangoon) offer 3.5-4.5% yields post-costs.
Disclaimer: This is general guidance; consult Homejourney mortgage brokers or advisors for personalized advice. Rates as of 2026; policies may change.
For multi-property plays, read Financing Multiple Investment Properties in Singapore 2026 | Homejourney and 新加坡多套房产融资策略：Homejourney投资者指南 .
FAQ: LTV and ABSD for Investment Properties
Q1: Can I use CPF for investment property downpayments?
Yes, after ABSD/BSD, but limited by OA balance and valuation. HDB rules stricter for non-upgrading flats.
Q2: What's the impact of ABSD on rental yield?
For S$2m condo at 20% ABSD, effective yield drops 1-2%; calculate net via 租金收益vs房贷：正现金流计算 | Homejourney指南 .
Q3: How does TDSR affect investment LTV?
TDSR (55% of income) often binds before LTV; e.g., S$10k monthly income limits total debt to S$5,500.
Q4: Are there ABSD remissions for investors?
Limited to developers (35-40% upfront, remittable).[3][4] No general investor relief.
Q5: Best banks for investment property interest only loan?
OCBC, UOB offer IO up to 5 years; compare live rates on Homejourney.
Master LTV and ABSD for Investment Property Guide with Homejourney's safe, verified tools. Start by calculating your options on our bank rates page—compare DBS, HSBC, Maybank in one click. For full pillar coverage, see 房产投资融资完整指南新加坡：Homejourney权威手册 . Your trusted partner for secure property journeys.
