LTV & ABSD Guide for Singapore Investment Properties | Homejourney
Understanding LTV and ABSD is essential for Singapore property investors planning to build a portfolio. Loan-to-Value (LTV) limits your borrowing capacity on investment properties, while Additional Buyer's Stamp Duty (ABSD) significantly increases upfront costs based on your buyer profile and property count. This Homejourney cluster guide provides actionable calculations, real examples, and financing strategies to navigate these rules safely.
As part of our comprehensive Financing Multiple Investment Properties in Singapore: Homejourney Guide ">Financing Multiple Investment Properties in Singapore pillar, this focused article equips investors with tactical advice on LTV and ABSD for investment property guide, multiple property financing, and portfolio financing. Homejourney prioritizes your safety by verifying data from official sources like IRAS and MAS.
What is LTV for Investment Properties?
The Loan-to-Value (LTV) ratio caps the maximum loan amount as a percentage of the property's purchase price or market value, set by the Monetary Authority of Singapore (MAS) to ensure prudent lending[1][6]. For investment properties, LTV decreases with each additional outstanding loan, making several properties loan financing more cash-intensive.
Current 2026 LTV limits for residential properties:
- First property (no outstanding loans): 75% LTV (55% for extended tenure)[1]
- Second property (1 outstanding loan): 45% LTV (25% extended)[1]
- Third and subsequent properties: 35% LTV (15% extended)[1]
Foreign investors and entities face the same caps but must fund down payments entirely in cash, without CPF usage[1]. For a S$2M condo as your second property, maximum loan is S$900,000 (45% LTV), requiring S$1.1M down payment (minimum 5% cash, rest CPF if eligible).[1]
ABSD Rates for Singapore Investors in 2026
Additional Buyer's Stamp Duty (ABSD) is a progressive tax on top of Buyer's Stamp Duty (BSD), payable within 14 days of signing the Option to Purchase[3]. Rates depend on your profile (Singapore Citizen, PR, Foreigner) and existing properties[2][3]. ABSD cannot use CPF funds.[1]
2026 ABSD rates for residential investment properties[2][3]:
Example: A Singapore Citizen buying a S$1.5M condo as a second property pays 20% ABSD = S$300,000, plus BSD (~S$66,600), totaling ~S$366,600 in stamp duties[2][4]. Joint purchases take the highest profile rate for the whole property[3].
Real Example: Financing a S$2M Investment Condo
Consider a Singapore Citizen investor with one HDB flat buying a S$2M condo in District 10 (e.g., near Orchard MRT):
- LTV: 45% max loan = S$900,000. Down payment: S$1.1M (5% cash = S$100,000; 40% CPF/eligible = S$800,000)[1].
- ABSD: 20% = S$400,000 (cash only).
- BSD: ~S$103,600[1].
- Total upfront cash: ~S$503,600 (excluding legal fees ~S$3,000).
Check eligibility on Homejourney's mortgage calculator for instant borrowing power assessment, factoring TDSR and MSR. Compare rates from DBS, OCBC, UOB at Homejourney bank rates.
Portfolio Financing Strategies for Multiple Properties
Building a property empire financing plan requires sequencing purchases to optimize LTV and ABSD. Sell non-core assets first to reset your property count and qualify for lower rates (e.g., decoupling HDB for 0% ABSD on first private buy)[2].
Actionable steps for multiple property financing:
- Step 1: Assess current loans via Singpass on Homejourney – auto-fills CPF/income data.
- Step 2: Model cash needs: 3rd property at 35% LTV means 65% downpayment + 30% ABSD.
- Step 3: Apply multi-bank via Homejourney: One form gets offers from DBS, OCBC, UOB, HSBC, Standard Chartered.
- Step 4: Time buys around market dips – track via Projects Directory ">Homejourney projects.
Insider tip: Target high-yield areas like District 5 (S$4,000+ psf rents) but factor 30% ABSD[related internal link]. See our Rental Yield vs Mortgage: Cash Flow Analysis | Homejourney ">Rental Yield vs Mortgage analysis.
HDB vs Private Investment Rules
HDB flats for investment face stricter rules: Minimum 5-year occupation before renting out entire flat. Private condos allow immediate rental. LTV/ABSD apply similarly, but HDB loans (from HDB) cap at 75% with MSR (30% of income), while banks use TDSR (55-60%)[1].
Foreigners: Restricted to condos (60% ABSD, 75% LTV max), no HDB or most landed[1]. Use Homejourney's property search to filter investable options within budget.
Common Pitfalls and Homejourney Tips
Avoid over-leveraging: TDSR limits total debt to 55% income. Example: S$10,000 monthly income caps property debt at S$5,500. Decoupling spikes ABSD if not planned – consult Homejourney brokers first.
Leverage Homejourney for safety: Our verified rates from 11 banks (including Maybank, CIMB, RHB) ensure transparency. Apply via Singpass for instant verification – no paperwork hassle.
FAQ: LTV and ABSD for Investment Properties
1. Can I use CPF for ABSD on investment properties?
No, ABSD must be paid in cash. BSD allows partial CPF[1][3].
2. What's the LTV for my 4th investment property?
35% standard (15% extended tenure)[1]. Expect 65%+ cash downpayment.
3. How does joint ownership affect ABSD?
Highest profile rate applies to full value (e.g., Citizen + Foreigner = 60%)[3].
4. Foreigner buying condo: Total costs for S$1.5M?
ABSD S$900,000 (60%) + BSD ~S$70,000 + 25% cash downpayment[1][2].
5. Best banks for portfolio financing?
Compare DBS, OCBC, UOB on Homejourney bank-rates – multi-bank apps simplify[internal links].
Disclaimer: This guide uses 2026 IRAS/MAS rules as of Feb 2026. Rates may change; consult professionals. Homejourney provides info, not financial advice.
Ready to finance your next investment? Start with Homejourney's bank rates for eligibility checks and applications. Link back to our pillar: Financing Multiple Investment Properties in Singapore: Homejourney Guide ">Financing Multiple Investment Properties for full portfolio strategies.
