LTV & ABSD Guide for Singapore Investment Properties | Homejourney

LTV (Loan-to-Value) limits and ABSD (Additional Buyer's Stamp Duty) are critical factors for Singapore property investors. Understanding these rules helps you calculate upfront costs, secure financing, and maximize cash flow from investment properties. Homejourney provides verified data to ensure safe, informed decisions in a trusted environment.

This cluster article focuses on LTV and ABSD specifics for investors, linking back to our comprehensive Singapore Property Financing Pillar Guide for full coverage. With 2026 regulations in mind, we'll break down rates, examples, and strategies using official sources like IRAS and MAS.

What is LTV for Investment Properties?

Loan-to-Value (LTV) ratio is the percentage of a property's value that banks or HDB will lend. For investment properties, LTV is typically lower than for owner-occupied homes to manage risk. In 2026, bank loans for private investment properties cap at 75% LTV for the first property, dropping to 45-55% for subsequent ones based on borrower profile and Total Debt Servicing Ratio (TDSR).

HDB loans offer up to 75% LTV (reduced from 80% in 2024), but investment in HDB is restricted. Private properties like condos see stricter limits: 55-75% depending on existing loans. Always check TDSR at 55% of gross income, stress-tested at 3.5% interest.

Actionable tip: Use Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator to assess your LTV eligibility instantly with Singpass integration for accurate CPF and income data.

ABSD Rates for Investment Properties in 2026

ABSD is a stamp duty on top of Buyer's Stamp Duty (BSD), targeting multiple property ownership. For Singapore Citizens (SC), it's 0% on first residential property, 20% on second, and 30% on third and subsequent. Singapore Permanent Residents (SPR) pay 5% on first, 30% on second, 35% thereafter. Foreigners face 60%, entities 65%.

These rates apply from 27 April 2023 onwards, per IRAS. For joint purchases, the highest profile rate applies per property. Housing developers pay 40% (5% non-remittable + 35% remittable under conditions).

• SC buying second condo ($1.2M): ABSD = $240,000
• SPR buying second property ($800K): ABSD = $240,000
• SC third property ($1.5M): ABSD = $450,000

Remission is possible if you sell an existing property within 6 months (for SC/SPR). This is key for upgrading or portfolio shuffling.

Real Example: Investing in a $1.2M OCR Condo

Consider a Singapore Citizen owning one HDB flat ($500K value) wanting a $1.2M Outskirts Core Region (OCR) condo for rental yield. Sell HDB first for 0% ABSD on condo, or pay 20% ABSD ($240K) upfront with remission if sold within 6 months.

LTV: At 75% max, loan = $900K. With TDSR 55% on $10K monthly income, max debt = $5,500/month. At 3% interest (stress 3.5%), this supports the loan if no other debts. Total upfront: ABSD $240K (remissible) + BSD ~$25K + cash for balance.

Insider tip: Time Option to Purchase (OTP) carefully—exercise condo OTP after HDB sale OTP to avoid penalties. Properties near MRT like Braddell View offer strong yields (4-5%) to offset costs.

Strategies to Navigate LTV and ABSD

To maximize cash flow, pair low LTV loans with high-yield properties. Consider interest-only loans (IO loans) for investment properties—available from DBS, OCBC, UOB for 2-5 years, reducing initial payments.

Steps for investors:

1. Check profile on https://www.homejourney.sg/bank-rates—compare DBS (3.2% IO), OCBC (3.15%), UOB rates.
2. Calculate ABSD using IRAS tool; factor into yield (aim >4% gross).
3. Apply multi-bank via Homejourney for best LTV offers—Singpass auto-fills data.
4. Explore ECs: 5-year ABSD exemption if income ≤$16K, own with one private property.
5. Refinance existing loans to free equity for next buy.

Link to our IO Loan Singapore: Investment Property Interest-Only Guide | Homejourney ">IO Loan Singapore Guide for investment property interest only details and Financing Multiple Investment Properties: LTV Limits 2026 | Homejourney ">multiple properties LTV.

Homejourney Tools for Safe Investing

Homejourney prioritizes your safety with verified rates from partners like HSBC, Standard Chartered, Maybank. View live comparisons and apply to multiple banks in one go. Track SORA for IO loan timing—our platform ensures transparency.

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FAQ: LTV and ABSD for Investment Properties

Q: Can I get 75% LTV on my second investment property?
A: Typically 55-65% max, depending on TDSR and bank. First-timers get higher; use Homejourney calculator for precise limits.

Q: How to avoid 30% ABSD as a Singapore Citizen?
A: Sell existing property within 6 months for remission. Plan via Projects Directory for market data.

Q: Are interest-only loans good for maximizing cash flow?
A: Yes, for rentals covering payments. Compare IO loan Singapore options on our bank rates page.

Q: What's the ABSD for foreigners in 2026?
A: 60% flat rate, making it challenging. Focus on ultra-prime or corporate structures (65%).

Q: Does joint ownership change ABSD?
A: Highest profile rate applies per property. Consult IRAS for specifics.

Disclaimer: This is general info; consult professionals for advice. Rates as of 2026 per MAS/IRAS.

Ready to invest? Start with Homejourney's bank rates comparison for LTV-optimized loans. Build your portfolio safely—link back to our pillar guide for more.