LTV & ABSD for Investment Properties: Singapore Guide | Homejourney

For Singapore property investors, understanding Loan-to-Value (LTV) limits and Additional Buyer's Stamp Duty (ABSD) is crucial for calculating upfront costs and borrowing power on investment properties. This LTV and ABSD for Investment Property Guide breaks down the 2026 rules, with real examples and steps to plan your next buy-to-let purchase safely through Homejourney's trusted platform.

As part of our broader Property Investment Financing Complete Guide, this cluster focuses on tactical financing rules for investors eyeing condos or private residences for rental income.

What is LTV and Why It Matters for Investment Property Loans

LTV (Loan-to-Value ratio) is the maximum percentage of a property's value that banks or HDB will lend you for an investment property loan. For investors buying a second or subsequent property, LTV drops to curb speculation, meaning you'll need more cash upfront.

In Singapore, Monetary Authority of Singapore (MAS) sets LTV caps. For borrowers with one or more existing residential loans—like most investors—LTV is limited to 15%-25% for further property loans. This applies to private condos or non-owner-occupied HDB flats used for rental (buy-to-let mortgages).

Real example: Buying a S$1.5 million condo in Tanjong Pagar as your second property? At 25% LTV max, you can borrow just S$375,000, requiring S$1.125 million in cash/CPF plus duties. Use Homejourney's mortgage eligibility calculator to test scenarios instantly.

Current ABSD Rates for Singapore Property Investors (2026)

ABSD is a stamp duty on top of Buyer's Stamp Duty (BSD), targeting multiple property ownership to prioritize homes for first-timers. Rates depend on your profile and property count, unchanged since 2023 per IRAS guidelines.

• Singapore Citizens (SC): 0% on first property, 20% on second, 30% on third+.
• Permanent Residents (PR): 5% on first, 30% on second/third+.
• Foreigners: 60% on any residential property (e.g., S$1.2 million on a S$2 million condo).
• Entities/Companies: 65% (developers get partial remission).

For joint purchases, the highest profile's rate applies. Pay ABSD within 14 days of Option to Purchase (OTP) via IRAS e-stamping—your lawyer handles this. Factor it into rental property financing as it erodes yields; a S$2 million condo at 20% ABSD costs S$400,000 extra.

LTV Limits for Investors: Rules and Exceptions

Standard LTV for first-time private property buyers is 75% (55% if tenure >30 years or past age 65). But for investment properties (second+), it tightens to 15-25% under MAS rules for those with existing loans.

HDB loans for non-owner-occupied flats cap at even lower LTV (recently tightened from 85% to 75% overall). Bank loans from DBS, OCBC, or UOB follow MAS: assess via Total Debt Servicing Ratio (TDSR) at 55% of income.

Insider tip: Refinancing your primary residence first can sometimes unlock higher LTV on the investment buy—consult Homejourney's mortgage brokers via bank-rates page.

Step-by-Step: Calculate Costs for Your Investment Property

1. Check your profile: Use IRAS ABSD calculator for your buyer status and property count.
2. Estimate LTV: If second property, assume 25% max loan. For S$1.8 million condo: Loan = S$450,000; Downpayment = S$1.35 million.
3. Add ABSD + BSD: SC second property: 20% ABSD (S$360,000) + BSD (~S$60,000 tiered).
4. Total upfront: ~S$1.77 million. Verify CPF usage rules (Ordinary Account for private properties).
5. Assess affordability: TDSR limits total debt to 55% income; use Homejourney's tool with Singpass for instant verification.

Compare investor mortgage rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more on Homejourney bank rates. Submit one application via Singpass/MyInfo for multi-bank offers.

Real-World Example: Investing in a S$2M Condo

SC investor with one HDB flat buys a S$2 million condo in Orchard for rental. ABSD: 20% = S$400,000. LTV: 25% = S$500,000 loan max. BSD: ~S$70,000. Total cash needed: S$1.97 million upfront.

Expected gross yield: 3-4% (S$5,000-6,500/month rent), but deduct property tax (AV-based, ~S$30,000/year), maintenance, and vacancy. Net yield ~2.5%—run cash flow on our Rental Yield vs Mortgage analysis.

Foreigners face 60% ABSD (S$1.2 million), making it prohibitive unless US citizens under FTA (0% on first, treated as PR).

Homejourney Tips for Safe Investment Financing

Homejourney prioritizes your safety with verified data and transparent tools:

• Track live SORA rates for property investment financing.
• Search budget-matched properties on Homejourney property search.
• Connect with brokers for personalized LTV/ABSD advice.
• Post-purchase, maintain value with aircon services.

Read our Financing Multiple Investment Properties guide for advanced strategies.

FAQ: LTV and ABSD for Singapore Investors

1. What's the LTV for a second investment property in 2026?
LTV is 15-25% for borrowers with existing loans, per MAS. Confirm with banks like DBS or OCBC via Homejourney.

2. How much ABSD do Singapore citizens pay on a second condo?
20% of purchase price, payable within 14 days of OTP. E.g., S$400,000 on S$2 million property (IRAS).

3. Can foreigners get loans for investment properties?
Yes, up to 75% LTV on first property (55% extended tenure), but 60% ABSD applies. US citizens may qualify for PR rates.

4. Does ABSD apply to HDB investment flats?
Yes, same rates as private properties for second+ buys. HDB loans have tighter LTV.

5. How to minimize costs? Seek professional advice.
Use Homejourney's multi-bank comparison and calculator. Disclaimer: This is general info; consult licensed advisors for your situation.

Ready to invest? Start with Homejourney bank rates for real-time investment property loan options and eligibility checks. Building trust through transparency—your safe path to property success.