LTV & ABSD Guide for Singapore Investment Properties | Homejourney
LTV for investment properties in Singapore limits loans to 45% for a second property and 35% for third or subsequent ones, while ABSD starts at 20% for citizens' second properties and hits 60% for foreigners. This LTV and ABSD for Investment Property Guide breaks down these rules to help investors plan down payments and total costs accurately. At Homejourney, we prioritize your safety with verified data so you invest confidently.
Why LTV and ABSD Matter for Property Investors
Understanding loan to value investment ratios and Additional Buyer's Stamp Duty (ABSD) is crucial for Singapore investors eyeing a second property or more. These measures from the Monetary Authority of Singapore (MAS) and Inland Revenue Authority of Singapore (IRAS) control borrowing and speculation. High ABSD discourages multiple ownership, while LTV caps protect against over-leveraging.
For investors, this means larger down payment investor requirements—often 55-65% cash for second properties. Homejourney verifies these rules from official sources, helping you avoid surprises. This cluster focuses on investment specifics, linking back to our pillar guide on LTV for Investment Property Singapore: Homejourney Guide ">Singapore property financing for full coverage.
Current LTV Limits for Investment Properties (2026)
The MAS sets LTV investment property limits based on outstanding loans. For a second property LTV, the standard cap is 45%, dropping to 25% for extended tenure over 30 years. Third and subsequent properties face 35% standard LTV or 15% extended[1][6].
Key LTV Rules for Investors:
- First property (no loans): 75% LTV standard, 55% extended
- Second property (investor LTV limit): 45% standard, 25% extended
- Third+ properties: 35% standard, 15% extended
At least 5-10% of the down payment must be cash; the rest can use CPF for citizens/PRs (foreigners pay full cash)[1].
Real Example: S$1.5M Condo as Second Property
For a S$1.5M condo in Tanjong Pagar (popular investor spot near MRT Exit A, 5-min walk), with one existing loan:
- Max loan: S$675,000 (45% LTV)
- Down payment: S$825,000 (55%)
- Cash minimum: S$75,000 (5%)
- CPF possible: Up to S$750,000 (subject to Ordinary Account limits)
Insider tip: Check CPF usage via HDB portal before OTP signing—many investors overlook withdrawal limits, facing shortfalls.
ABSD Rates for Investment Properties in 2026
ABSD applies progressively for citizens/PRs and flat for foreigners/entities, on top of Buyer's Stamp Duty (BSD 1-6%). Rates unchanged since April 2023 cooling measures[2][3]. Calculated on higher of purchase price or market value; payable in 14 days, no CPF use.
| Buyer Profile | 1st Property | 2nd Property | 3rd+ Properties |
|---|---|---|---|
| Singapore Citizens | 0% | 20% | 30% |
| Permanent Residents | 5% | 30% | 35% |
| Foreigners | 60% | 60% | 60% |
| Entities | 65% | 65% | 65% |
Example: S$2M Condo ABSD Costs
Citizen buying second property: ABSD S$400,000 (20%) + BSD ~S$69,600 = Total ~S$469,600[1]. Foreigner: ABSD S$1.2M (60%) + BSD = ~S$1.27M. Joint SC-foreigner buys trigger highest rate (60%) on full value[1].
Pro tip: Time purchases post-decoupling if restructuring ownership—consult lawyers early, as IRAS assesses at signing.
Actionable Steps: Calculate Your Investment Costs
Follow this framework for any second property LTV or ABSD planning:
- Assess profile: Count existing properties via Singpass on IRAS e-Stamping portal.
- Estimate LTV: Use Homejourney's mortgage calculator for loan to value investment max.
- Compute ABSD/BSD: IRAS calculator confirms total stamp duties.
- Budget down payment: Factor 5%+ cash, CPF limits, ongoing TDSR (55% debt cap).
- Compare loans: View DBS, OCBC, UOB rates on Homejourney bank rates.
Verify properties in Projects ">Homejourney projects directory or property search.
Homejourney Tools for Safe Investing
Homejourney builds trust with verified rates from DBS, OCBC, UOC, HSBC, Standard Chartered, Maybank, and more. Use Singpass for instant eligibility checks—no manual uploads. Our multi-bank submission gets offers fast, prioritizing your security.
Track financing options via Best Bank Loans for Property Investors: Homejourney 2026 Guide ">best bank loans for investors or Financing Multiple Investment Properties: Singapore Investor Guide | Homejourney ">multiple properties guide.
FAQ: LTV and ABSD for Investment Properties
Q: What's the investor LTV limit for a third condo?
A: 35% standard LTV, meaning 65% down payment minimum, with 5% cash[1]. Use our calculator for precision.
Q: Can I use CPF for ABSD on investment property?
A: No, ABSD must be cash; CPF only for BSD portions[1][2]. Plan liquidity carefully.
Q: How does decoupling affect LTV and ABSD for Investment Property Guide?
A: Post-decoupling, you may qualify for lower rates as 'first-time' buyer, but one spouse retains loan—check with IRAS[2].
Q: Foreigner buying second property—ABSD rate?
A: Flat 60%, regardless of count[1][2][3].
Q: Where to compare down payment investor options?
A: Homejourney's bank-rates page shows live offers from all major banks.
Disclaimer: Rules per MAS/IRAS 2026; consult professionals for advice. Homejourney provides tools for informed decisions, not financial advice.
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