LTV & ABSD for Investment Property Guide | Homejourney
Singapore property 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 at least 55% upfront cash or CPF plus taxes.[1][2]
This LTV and ABSD for Investment Property Guide from Homejourney breaks down these MAS and IRAS rules with real examples, calculations, and tips to maximize your cash flow. As part of our comprehensive Property Investment Financing Complete Guide Singapore | Homejourney pillar, it equips you with tactical advice for safe, verified investing. Homejourney prioritizes your trust with transparent tools like our mortgage eligibility calculator.[1][2]
What is LTV for Investment Properties in Singapore?
Loan-to-Value (LTV) ratio is the percentage of a property's purchase price or valuation (whichever is higher) that banks can finance. 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 demands substantial downpayments.[1][3]
Real example: 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 (55%). Another case: A Singaporean with an existing HDB flat buying a $1.2M resale condo in Bedok Reservoir as buy-to-let needs 55% down ($660,000: minimum 5% cash + balance CPF/cash).[1][2]
Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator for instant eligibility via Singpass—your data verified safely.[1]
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:[1][3][7]
- Singapore Citizens: 0% first, 20% second, 30% third+.
- PRs: 5% first, 30% second+.
- Foreigners: 60% flat on any property.
- Entities: 65%.
Joint purchases apply the highest rate to the full value—e.g., Citizen + Foreigner = 60%.[3] Example: $1.2M investment condo as second property for a Citizen = $240,000 ABSD + ~$30,000 BSD = $270,000 total duties.[1][2]
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. Always verify on IRAS portal; Homejourney ensures transparency for your safety.[1][7]
Step-by-Step: Combining LTV and ABSD for Investors
Investment buys require 5% cash for LTV downpayment + full ABSD (often cash) + BSD, then banks assess Total Debt Servicing Ratio (TDSR) at 55% max debt-to-income.[1][2]
- Determine profile: Count existing properties (HDB/condo count as one each).[1]
- Calculate ABSD/BSD: Use IRAS rates on purchase price (e.g., $1M property, second home Citizen: 20% ABSD = $200K).[1][7]
- Apply LTV: Second property max 45% loan ($1M = $450K loan, $550K down).[1][3]
- Add minimum 5% cash: $50K cash + CPF for balance downpayment/ABSD (where allowed).[1]
- Check TDSR/MSR: Ensure monthly payments <55% income. Banks like DBS, OCBC, UOB apply this strictly.[1]
Pro tip: Pair with Interest-Only Loan for Investment Property Singapore: Homejourney Guide to maximize cash flow via IO loans from Homejourney partners.[1]
LTV Limits for Multiple Investment Properties
Third+ properties drop to 35% LTV, increasing cash needs. Owner-occupied gets higher (75-80%), but pure investments tighten progressively.[1][3]
Strategies: Decouple (transfer spouse's share, incurs BSD but resets ABSD clock); dual-key units count as one for ABSD. For portfolios, see Financing Multiple Investment Properties: Homejourney Guide. Consult pros—Homejourney connects safely via bank-rates.[1][2]
Compare rates from DBS, OCBC, UOC, HSBC, Standard Chartered, Maybank at https://www.homejourney.sg/bank-rates. Submit one application for multi-bank offers with Singpass auto-fill.[1]
Maximizing Cash Flow: IO Loans with LTV/ABSD
Interest-only (IO) loans suit investors, covering only interest initially to boost cash flow for rentals. Available from banks like DBS and UOB for investment properties, subject to 45%/35% LTV.[1]
Example: $1M property at 45% LTV ($450K loan), 3% IO rate = ~$1,125/month vs. full amortizing $2,500+. See Best Bank Loans for Property Investors | Homejourney Guide. Track rates and apply via Homejourney for safety.[1]
The chart below shows recent interest rate trends in Singapore:
As seen, SORA influences IO loans—time fixes when rates dip. Homejourney tracks live for optimal decisions.[1]
Practical Tips for Singapore Investors
- Search budget-fit properties on Homejourney property search.[1]
- Verify market data in our projects directory.
- Post-purchase, maintain with aircon services for rental appeal.
- Disclaimer: Rules from MAS/IRAS (2026); consult advisors. Homejourney provides tools, not advice.[1][7]
FAQ: LTV and ABSD for Investment Properties
1. Can I use CPF for ABSD on investment properties?
Yes, upfront for new properties; resale HDB needs initial cash then CPF refund within 14 days via IRAS.[1][7]
2. What is max LTV for third investment property?
35% for bank loans; factor TDSR impact.[1][3]
3. Does joint purchase affect ABSD?
Yes, highest rate applies to full value (e.g., Citizen+Foreigner=60%).[3]
4. How does LTV work with IO loans?
Same limits (45%/35%); IO maximizes cash flow for rentals. Compare on Homejourney.[1]
5. Where to calculate LTV/ABSD impact?
Use Homejourney's free calculator at https://www.homejourney.sg/bank-rates#calculator.[1]
Ready to invest safely? Compare rates, calculate eligibility, and apply via https://www.homejourney.sg/bank-rates
