LTV & ABSD for Investment Property Guide | Homejourney

LTV and ABSD for Investment Property Guide reveals that Singapore investors face a maximum 45% Loan-to-Value (LTV) limit on second properties and 20% Additional Buyer's Stamp Duty (ABSD) for Singapore Citizens, requiring substantial upfront cash.

These MAS and IRAS rules demand careful planning for property investment financing. Homejourney prioritizes your safety with verified data and tools like our mortgage calculator to assess investment property loan eligibility instantly via Singpass.[1][2]

What is LTV in Singapore Property Investment?

Loan-to-Value (LTV) ratio measures your loan amount against the property's purchase price or valuation, whichever is higher. For investment properties (second or subsequent homes), MAS caps LTV at 45% for the second property and 35% for third and beyond.[1][2][3]

First-time buyers get up to 75% LTV, but investors face tighter limits to curb speculation. HDB loans are stricter at 25% for second properties. This means for a $1.5 million condo near Tanjong Pagar MRT Exit A (2-minute walk), maximum bank loan is $675,000, requiring $825,000 cash/CPF downpayment.[1]

Real example: A Singaporean with an existing HDB flat buying a $1.2M resale condo in Bedok Reservoir as a buy-to-let needs 55% down ($660,000: 5% cash minimum + balance CPF/cash). Use Homejourney's eligibility calculator at bank-rates for precise figures.[1][2]

Current ABSD Rates for Investment Properties (2026)

Additional Buyer's Stamp Duty (ABSD) is a cooling measure tax on top of Buyer's Stamp Duty (BSD), based on buyer profile and property count. As of 2026, rates are: Singapore Citizens - 0% first, 20% second, 30% third+; PRs - 5%/30%; Foreigners - 60% flat; Entities - 65%.[1][3][6]

Example: $1.2M investment condo as second property for a Citizen = $240,000 ABSD + ~$30,000 BSD = $270,000 total duties. Joint purchases take the highest rate—e.g., Citizen + Foreigner = 60% on full value.[2][3]

Insider tip: For resale HDB investments, pay ABSD in cash via lawyer first, then refund from CPF within 14 days. New launches allow CPF upfront. Verify on IRAS portal; Homejourney ensures transparency.[1][6]

Step-by-Step: Combining LTV and ABSD for Investors

Investment property buys require: 5% cash for LTV downpayment + full ABSD (often cash) + BSD. Banks then assess Total Debt Servicing Ratio (TDSR) at 55% max debt-to-income.[1][2]

1. Determine profile: Count existing properties (HDB/condo).
2. Calculate ABSD/BSD: Use IRAS rates on purchase price.
3. Apply LTV: Second property max 45% loan (e.g., $1M property = $450K loan, $550K down).
4. Add minimum 5% cash: $50K cash + CPF for balance downpayment/ABSD (where allowed).
5. Check TDSR/MSR: Ensure monthly payments <55% income.

Example calculation for $1.5M second condo (Citizen): ABSD $300K (20%), BSD ~$37.5K, LTV down $825K (55%) - total upfront ~$1.16M + fees. Track with Homejourney tools.[1][3]

Property Investment Financing Complete Guide covers broader strategies.

LTV Limits for Multiple Investment Properties

For third+ properties, LTV drops to 35%, amplifying cash needs. Owner-occupied gets higher (up to 75-80%), but pure investments face progressive tightening.[3]

Pro tips: Decouple (transfer spouse's share, incurs BSD but resets ABSD clock); dual-key units count as one for ABSD. Always consult professionals—Homejourney connects you safely via bank-rates.[3][5]

Compare buy to let mortgage options from DBS, OCBC, UOB, HSBC at Homejourney for best rental property financing.[1]

TDSR and Other Financing Constraints

Beyond LTV/ABSD, TDSR limits total debt (including investments) to 55% of income. MSR applies for HDB (30% income). Banks like Standard Chartered, Maybank assess holistically.[1][2]

Homejourney's multi-bank submission lets you apply once via Singpass, getting offers from DBS, OCBC, UOB, HSBC, and more—prioritizing your trust and speed.

Homejourney Tools for Safe Investment Decisions

At Homejourney, user safety comes first. Compare live rates from all major banks, calculate LTV/ABSD impacts, and apply securely with Singpass auto-fill for income/CPF verification.

• Instant eligibility via mortgage calculator.
• Multi-bank offers: DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB.
• Refinance guide for portfolio optimization.

Search budget-friendly investments at property search. See Best Bank Loans for Property Investors.

FAQ: LTV and ABSD for Investment Properties

1. Can I use CPF for ABSD on investment properties?
Yes, upfront for new launches; resales require initial cash payment then CPF refund within 14 days via IRAS.[1][6]

2. What is the max LTV for a third investment property?
35% for bank loans, subject to TDSR. Use Homejourney calculator to verify.[1][2]

3. Does joint purchase affect ABSD rates?
Yes, highest profile rate applies (e.g., Citizen + Foreigner = 60%).[2][3]

4. How does decoupling help with LTV/ABSD?
Transfers ownership to one spouse, resetting property count for the other (BSD applies).[3][5]

5. Are there exceptions for investors?
Dual-key units count as one; trusts for minors may avoid ABSD. Seek legal advice; Homejourney guides safely.

Disclaimer: This is general guidance, not financial advice. Regulations change; consult IRAS/MAS/banks. Homejourney verifies data for your confident decisions.

Master your investor mortgage with Homejourney's LTV and ABSD for Investment Property Guide. Start at bank-rates or explore our multiple properties financing pillar for complete insights.

References

1. Singapore Property Market Analysis 1 (2026)
2. Singapore Property Market Analysis 2 (2026)
3. Singapore Property Market Analysis 3 (2026)
4. Singapore Property Market Analysis 6 (2026)
5. Singapore Property Market Analysis 5 (2026)