LTV & ABSD for Investment Property: 2026 Guide | Homejourney

LTV and ABSD for Investment Property Guide: How Much You Can Borrow & What You’ll Pay

If you’re buying a second property or a pure investment unit in Singapore, the two rules that determine your numbers are Loan-to-Value (LTV) and Additional Buyer’s Stamp Duty (ABSD). LTV caps how much you can borrow; ABSD is the extra tax you pay on top of normal stamp duty. Together, they decide your required cash/CPF, your loan size, and whether the investment makes sense.

This cluster article focuses on LTV and ABSD for investment property in 2026, and links back to Homejourney’s main Singapore home loan pillar guide . Here you’ll find practical, numbers-based examples, so you can plan your next investment or second property loan safely and confidently using Homejourney’s tools.

Key Definitions: LTV and ABSD in Simple Terms

Loan-to-Value (LTV) is the maximum percentage of a property’s value that banks or HDB will lend you. MAS sets these limits nationwide to prevent over-borrowing and keep the system safe.[6] For investment property, your LTV usually drops once you already have an existing home loan.

Additional Buyer’s Stamp Duty (ABSD) is an extra tax payable to IRAS when you buy residential property on top of Buyer’s Stamp Duty (BSD). ABSD depends on your profile (citizen/PR/foreigner/entity) and how many properties you already own.[5] Investment purchases almost always incur ABSD unless it’s your first and only home.

In practice, LTV affects your financing (how big an investment property loan you can get), while ABSD affects your upfront cost and cashflow. Homejourney helps you calculate both, compare banks, and see if the yield still works.

Current ABSD Rates for Investment Property (2026)

Based on IRAS’ latest schedule (rates from 27 April 2023, still in force in 2026), the ABSD rates for residential property are:[5][3]

Singapore Citizens (SC): 0% on 1st, 20% on 2nd, 30% on 3rd and subsequent residential properties
Singapore Permanent Residents (PR): 5% on 1st, 30% on 2nd, 35% on 3rd and subsequent properties
Foreigners: 60% on any residential property[2][7]
Entities / Trustees: 65% on any residential property[5][3]

ABSD is calculated on the higher of purchase price or market value, and must be paid within 14 days of exercising your Option to Purchase (OTP) or signing the Sale & Purchase Agreement for local deals.[5] Your conveyancing lawyer will handle e‑stamping, but you must have funds ready.

For example, a Singapore Citizen buying a second condo at S$1.8M as an investment:

ABSD: 20% × S$1,800,000 = S$360,000
Plus BSD on tiered rates of 1–5% (roughly S$64K+; exact figure depends on IRAS schedule)[2][3]

This is why many investors use Homejourney’s calculator at Bank Rates before even viewing units – if the ABSD bill alone busts your liquidity, the yield likely won’t justify the risk.

Current LTV Rules for Investment Property Loans

MAS sets different LTV limits depending on how many outstanding housing loans you already have.[6] For private bank loans (DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Citibank, etc.), the typical caps are:

0 outstanding housing loans: up to 75% LTV if tenure ≤30 years and loan ends by age 65; otherwise 55% LTV[2]
1 or more outstanding housing loans: LTV drops sharply – MAS guidance points to 45% or less, and as low as 15–25% in some categories depending on tenure and profile.[6]

For HDB loans, the official LTV is currently 75% for eligible buyers (revised from 80%) but HDB loans cannot be used for private investment properties and are restricted to owner-occupied HDB flats.[1][4]

In practical investor language: once you already have a home loan, the maximum LTV for a second property loan usually falls to 45% or below, and your minimum cash/CPF equity goes up. That is why many investors speak to Homejourney Mortgage Brokers early via Bank Rates – to test different scenarios before committing to an Option.

How LTV and ABSD Work Together for Investment Property

When you buy an investment unit, the key numbers are:

Maximum rental property mortgage (LTV)
Upfront cash/CPF needed (ABSD + BSD + downpayment)
Debt servicing (TDSR) impact on your income

Let’s use a realistic example I often see around the East–West Line suburbs like Tampines or Clementi: a new launch or resale 2-bedder at S$1.5M near an MRT, popular with young tenant couples.

Example: Singapore Citizen Buying Second Investment Condo

Profile:

Singapore Citizen, already owns and is financing an HDB flat in Punggol
Combined monthly income S$16,000
Target unit: S$1,500,000 private condo for rental

Step 1 – ABSD & BSD:

ABSD (2nd property, SC): 20% × S$1,500,000 = S$300,000[3]
BSD: progressive 1–5% schedule (approx. S$44K+, check current IRAS rates)[3]

Step 2 – LTV (second housing loan):

Assume bank grants 45% LTV due to existing loan
Max loan: 45% × S$1,500,000 = S$675,000
Equity (cash/CPF): S$1,500,000 − S$675,000 = S$825,000

Step 3 – Total upfront requirement (ignoring legal/other fees):

Equity: S$825,000
ABSD: S$300,000
BSD: ~S$44,000+
Total ≈ S$1.17M+ in cash/CPF

Even if you have strong income, this level of capital means the rental yield must be carefully stress-tested. Homejourney’s affordability calculator at Mortgage Rates lets you plug in rent assumptions, maintenance, and interest rates to see whether the numbers stay safe under different scenarios.

Interest Rates, SORA, and Choosing Your Investor Mortgage Bank

Most investment property loans today are pegged to SORA (Singapore Overnight Rate Average) or offered as fixed-rate packages by major banks like DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and Citibank. Homejourney tracks live 3M and 6M SORA and fixed packages on our bank rates page Bank Rates , so you can see which investor mortgage bank is most competitive at any point.

The chart below shows recent interest rate trends in Singapore:

Locally, investors I work with in areas like Tiong Bahru, Holland Village, and Pasir Ris usually favour:

Shorter fixed-rate periods when rates are high but expected to fall
SORA-pegged packages when they believe rates are peaking and want to ride them down
Longer tenures up to age 65 to ease monthly cashflow, as long as TDSR remains within 55% of income

To go deeper into bank-specific pros and cons, see our investor-focused bank review: Best Bank for Property Investors in Singapore 2026 | Homejourney Guide Best Bank for Property Investors in Singapore 2026 | Homejourney Guide . For OCBC-focused investors, we also have detailed reviews Who Should Choose OCBC Home Loan? Complete Review | Homejourney and comparisons against other banks OCBC Home Loan vs Other Banks: Complete 2026 Comparison | Homejourney .

Insider Tips: How Locals Structure Investment Purchases Safely

From what I’ve seen in common upgrader hotspots like Sengkang, Yishun, and Jurong East, savvy investors do a few key things to manage LTV and ABSD for investment property.

1. Timing the Sale of Your First Home

Many HDB upgraders sell their flat first before buying a private investment property. Once you no longer have an outstanding housing loan, you may qualify for a higher LTV (up to 75%) on your next loan and in some cases, avoid ABSD if it’s considered your only property at the time of purchase.[3][6]

However, this strategy involves temporary renting, which is why some families choose areas with strong rental stock near MRT nodes like Paya Lebar, Outram Park, and Woodlands. Use Homejourney’s search at Property Search to explore both purchase and rental options within your budget.

2. Being Conservative With TDSR

MAS’ Total Debt Servicing Ratio (TDSR) caps your total monthly debt obligations at 55% of your gross monthly income. This includes all home loans, car loans, credit cards, and personal loans. For investors, I usually recommend keeping your property-related monthly commitments below 40–45% even if your TDSR allows more, to cushion vacancy periods and rate hikes.[6]

Homejourney’s mortgage eligibility calculator at lets you simulate TDSR under different rents and interest rates, so you can test “stress scenarios” safely.

3. Factoring In Real Maintenance & Vacancy

In estates like Bukit Panjang or Tampines, older condos may look cheap but often need higher sinking fund and maintenance. After you collect keys, you might need aircon overhaul, repainting, and minor works before renting out. Budget for this up front.

Homejourney connects you to reliable post-move services like aircon servicing Aircon Services , so your unit remains tenant-ready and your yield stays healthy over time.

Step-by-Step: Evaluating a Rental Property Mortgage

Use this quick framework before committing to any second property loan in Singapore:

Check your current property count and profile
Confirm if this purchase will be your 1st, 2nd, or 3rd+ property, and whether you are SC/PR/foreigner. Use IRAS’ ABSD guide to find the exact ABSD rate.[5]
Estimate your ABSD and BSD
Multiply the projected purchase price by your ABSD rate, then add BSD using IRAS’ tiered schedule (1–5%).[2][3][5] This is your stamp duty budget.
Simulate your LTV and loan size
On Homejourney’s bank rates page Bank Rates , enter your age, income, and existing loans. The calculator will estimate your maximum LTV and loan quantum with different banks.
Run TDSR and cashflow scenarios
Input conservative rental estimates (e.g., 10–15% below recent transactions in the same area). Check that your net monthly cashflow stays positive even if interest rates rise 1–2%.
Compare banks and apply safely
Use Homejourney to compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Citibank and more in one view Bank Rates . Submit a single application via Singpass/MyInfo and let our Mortgage Brokers shortlist the best investment property loan offers for you.

Singapore-Specific Considerations for Investment Buyers

A few local rules that often surprise first-time investors:

CPF usage: You can generally use CPF Ordinary Account savings for downpayment and to service the loan, subject to Valuation Limit and Withdrawal Limit. But ABSD on resale purchases usually has to be paid in cash first before you can apply to refund with CPF.[3]
Minimum cash downpayment: At least 5% in cash for your first bank loan; this can increase when you already have existing housing loans (often 25% or more must be cash for subsequent purchases).
HDB rules: If you still own an HDB flat, you must meet the Minimum Occupation Period (MOP) before you can buy a private residential property as an investment, and you cannot own another HDB flat at the same time.
SSD (Seller’s Stamp Duty): If you sell within a specified holding period from purchase (e.g., 3 years), SSD may apply and eat into your returns. Always check the current SSD schedule before planning a quick flip.