LTV & ABSD Guide for Singapore Investment Properties | Homejourney

LTV (Loan-to-Value) limits for investment properties in Singapore cap bank loans at 55% for most second property buyers, while ABSD starts at 20% for Singapore citizens on their second residential property. This guide breaks down these rules for investors eyeing a second property loan or rental property mortgage, helping you calculate costs and maximize financing safely through Homejourney.

Understanding LTV and ABSD for investment property is crucial in Singapore's regulated market, where high stamp duties and tight lending rules protect buyers from over-leveraging. As a trusted platform prioritizing user safety, Homejourney verifies data from official sources like IRAS and MAS to empower confident decisions. This cluster article supports our pillar guide on Singapore property financing—link to the full Singapore Property Financing Pillar for comprehensive coverage.

What is LTV and Why It Matters for Investment Properties

Loan-to-Value (LTV) ratio is the percentage of a property's value that banks can lend, calculated as loan amount divided by property purchase price or valuation (whichever is lower). For investment property loans, MAS sets stricter limits to curb speculation: 55% LTV for borrowers with any outstanding residential property loan, dropping to 15-25% for those with multiple loans[6].

First-time buyers get up to 75-90% LTV, but investors face 55% max, meaning a $1.5 million condo requires at least $675,000 cash downpayment (45% equity). This aligns with TDSR (Total Debt Servicing Ratio) at 55% of income and MSR (Mortgage Servicing Ratio) for HDB at 30%.

Insider tip: For HDB-to-private upgrades, essential occupiers on the first HDB cannot use CPF for payments if decoupling, pushing reliance on cash or bank loans[1]. Use Homejourney's mortgage calculator to test scenarios instantly.

ABSD Rates for Investment Properties in 2026

Additional Buyer's Stamp Duty (ABSD) is a progressive tax on top of BSD, targeting multiple property ownership. Current 2026 rates from IRAS:

Singapore Citizens (SC): 0% first, 20% second, 30% third+ [1][2][4]
Permanent Residents (PR): 5% first, 30% second, 35% third+ [1][2]
Foreigners: 60% any residential property [1][2][4]
Entities/Trustees: 65% [2][4]

For a $1.5M second condo, SCs pay $300,000 ABSD upfront (cash for resale, CPF possible post-ownership for new launches)[1]. Joint purchases use the highest profile rate per property[4].

ABSD refunds exist for seniors 55+ downsizing (sell first within 6 months)[1], but investors rarely qualify. Commercial properties dodge ABSD entirely, ideal for pure rentals[1].

Real Example: Calculating LTV and ABSD for a Second Property

Scenario: SC couple owns HDB, buys $1.8M condo in District 15 (e.g., near Stevens MRT) as investment property.

ABSD: 20% of $1.8M = $360,000 (pay within 14 days of S&P agreement).
Downpayment: 55% LTV max = $990,000 loan; $810,000 equity (25% cash + 20% CPF if eligible).
BSD: ~$78,800 (tiered: 1-6% on bands up to $1.5M+)[1].
Total upfront: ~$1.25M.

Monthly repayment on $990K loan at 3.5% (est. SORA-based): ~$4,400, fitting TDSR if household income >$96K/year. Decoupling one spouse (tenancy-in-common) lets the 'first-timer' claim 0% ABSD, but triggers income tax on transfer[2].

Verify affordability on Homejourney's bank rates page—compare best bank property investor options like DBS, OCBC, UOB.

Best Bank Strategies for Investor Mortgage Loans

For second property loans, prioritize banks with flexible LTV usage and low SORA packages. Homejourney partners include DBS (competitive fixed rates), UOB (investor-friendly tenure), and HSBC (high LTV for premiums). Check our Best Bank for Property Investors Singapore 2026 | Homejourney ">Best Bank for Property Investors 2026 review.

SORA influences rates—view trends below for timing your rental property mortgage:

The chart below shows recent interest rate trends in Singapore:

Rates hover ~3%, favoring fixed packages from investor mortgage banks like Standard Chartered for stability[related internal]. Apply via Homejourney for multi-bank offers using Singpass—auto-fills income/CPF data for speed and security.

Actionable Steps to Finance Your Investment Property

Follow this framework on Homejourney for safe investing:

Assess Eligibility: Use our calculator at bank-rates#calculator for LTV/TDSR simulation.
Calculate Duties: Input price for ABSD/BSD estimates (e.g., $2M second property: $400K ABSD).
Compare Rates: View DBS vs OCBC vs UOB on bank-rates.
Apply Securely: One-click multi-bank submission via Singpass—our brokers guide you.
Search Properties: Filter budgets on property search; explore Projects ">projects directory.

Disclaimer: Rules from MAS/IRAS (2026); consult professionals. Homejourney verifies data but isn't financial advice.

FAQ: LTV and ABSD for Investment Properties

1. What's the LTV for a second investment property in Singapore?
Singapore citizens/PRs get max 55% LTV on second+ residential properties per MAS rules[6]. Use Homejourney calculator for your scenario.

2. How much ABSD on my second private condo as a Singaporean?
20% of purchase price (e.g., $400K on $2M condo)[1][2][4]. PRs pay 30% on second.

3. Can I use CPF for ABSD on investment properties?
Yes for new launches post-ownership; cash upfront for resale[1]. Check CPF Ordinary Account balance.

4. Which is the best bank for property investors?
Compare DBS, UOB, OCBC on Homejourney's bank-rates for SORA rates and fees. See our UOB Home Loan Review 2026: Complete Guide by Homejourney ">UOB review.

5. Does decoupling avoid ABSD for second properties?
Yes, the decoupled spouse buys as first-timer (0% ABSD), but plan for tax implications[2].

Master LTV and ABSD for investment property guide essentials with Homejourney—your safe partner for transparent property journeys. Start comparing investment property loans today at https://www.homejourney.sg/bank-rates or explore properties at property search. For full financing strategies, read our pillar guide.