LTV and ABSD for Investment Property: Homejourney’s 2026 Guide

The LTV and ABSD for Investment Property Guide is essential reading if you plan to build a property portfolio safely in Singapore. It explains how much you can borrow (Loan-to-Value limits) and how much tax you must pay upfront (Additional Buyer’s Stamp Duty), so you can avoid cashflow shocks and structure multiple property financing confidently with Homejourney’s tools and verified information.[1][7][8]

This article is a focused cluster in Homejourney’s broader Property Investment Financing pillar, zooming in on LTV, ABSD and how they work together for investors holding several properties or planning a property empire financing strategy. For the full, big-picture framework, always cross‑reference the main pillar guide: Property Investment Financing Complete Guide Singapore | Homejourney .

What Are LTV and ABSD for Investment Property?

Loan-to-Value (LTV) is the maximum percentage of a property’s price or valuation (whichever is higher) that a bank or HDB can lend you. For investment properties (your second or subsequent residential home), MAS imposes lower LTV limits than for your first home to manage risk and speculation.[1][7]

As of 2026, for bank loans on residential properties in Singapore:[1][4][7]

First property (no outstanding housing loan): up to around 75% LTV (subject to tenure and age).
Second property (one outstanding housing loan): about 45% LTV.[1][4]
Third and subsequent properties (two or more outstanding loans): about 35% LTV.[1]

Additional Buyer’s Stamp Duty (ABSD) is a tax payable on top of Buyer’s Stamp Duty when you buy residential property. For investors, ABSD escalates sharply as your property count increases.[1][2][8]

Based on 2026 market guides and IRAS structure, typical ABSD profiles for investment property look like this (always verify latest rates on IRAS):[1][2][4][8]

Singapore Citizens: 0% on first, 20% on second, 30% on third and beyond.[1][2][4]
Permanent Residents: 5% on first, 30% on second and beyond.[1][2]
Foreigners: 60% on any residential property.[1][3][5][8]
Entities: generally 65% and above (depending on structure).[1][8]

For joint buyers, the highest applicable ABSD profile applies to the full purchase price. For example, a Singapore Citizen buying with a foreign spouse will pay 60% ABSD on the entire property value.[1][8]

Why LTV and ABSD Matter More for Investment than Your First Home

When you buy your first home—say a 4-room resale HDB in Tampines—your main concerns are price, monthly instalment and whether the location fits your lifestyle (near MRT, schools, and hawker centres like Tampines Round Market). With investment property, your risks multiply: lower LTV, higher ABSD, tighter TDSR and vacancy risk all come into play at once.[1][2][4]

For example, in the Tanjong Pagar area, a 1-bedroom condo near Tanjong Pagar MRT Exit A at S$1.5 million will typically be financed differently depending on your property count:[1]

As first property: up to ~75% LTV, loan ≈ S$1.125M, downpayment ≈ S$375K.
As second property (Citizen): up to 45% LTV, loan ≈ S$675K, downpayment ≈ S$825K + 20% ABSD (S$300K) + BSD.[1]

That means to buy the same Tanjong Pagar unit as an investment, you may need S$1.1M+ in cash and CPF upfront after factoring ABSD, BSD and minimum 5% cash.[1][4][5]

This is why Homejourney emphasises a portfolio financing mindset: instead of looking at each purchase in isolation, you plan your sequence of buys, LTV and ABSD exposures, and refinancing strategy across the next 5–10 years. Our bank rates and calculator tools on Bank Rates and Mortgage Rates are designed specifically for that.

Step‑by‑Step: How to Combine LTV and ABSD for an Investment Purchase

When you are contemplating multiple property financing—for example, keeping your existing HDB in Punggol and buying a Bedok Reservoir condo as a rental—use this 6‑step framework.

1. Confirm Your Property Count and Buyer Profile

First, list all properties you own or have a share in—HDB, EC, private condo, and even small joint shares with family. IRAS counts part-ownership as one property for ABSD.[8]

Next, confirm your status: Singapore Citizen, PR, foreigner, or buying through a company. This determines your baseline ABSD band.[1][2][8]

2. Estimate ABSD and BSD Upfront

Use the IRAS ABSD tables as the primary reference, then plug your numbers into Homejourney’s calculators.[1][5][8] For quick planning:

On a S$1,200,000 second property for a Singapore Citizen: 20% ABSD = S$240,000.[1][2]
BSD on S$1.2M (using IRAS progressive rates) ≈ S$30,000–S$35,000.[5][8]
Total stamp duties ≈ S$270,000–S$275,000, usually due within 14 days of exercising the Option to Purchase.[1][5][8]

Insider tip (resale HDB/EC): for some transactions, lawyers may require ABSD first in cash, then you can apply to use CPF to “refund” yourself within the IRAS timeframe (often 14 days). Always verify the exact process with your conveyancing lawyer and check IRAS guidance; rules can change.[1][8]

3. Apply the Correct LTV Limit

Once you know your ABSD, calculate the maximum loan using the applicable LTV band.[1][4][7]

Second property: up to 45% LTV.
Third property: up to 35% LTV.[1][4]

Example: A Singapore Citizen owning an HDB in Sengkang wants a S$1.2M resale condo along Bedok Reservoir Road as a buy‑to‑let.[1]

ABSD (second property) = 20% × 1,200,000 = S$240,000.[1][2]
BSD ≈ S$30,000+.[5]
Max loan (45% LTV) = 0.45 × 1,200,000 = S$540,000.
Downpayment = S$660,000 (55%). At least 5% (S$60,000) must be cash, remainder can be CPF + cash.[1][4]

You can test multiple scenarios instantly using Homejourney’s mortgage eligibility and affordability calculator on Bank Rates and .

4. Check TDSR and Rental Cashflow

Even if you meet LTV limits, MAS’ Total Debt Servicing Ratio (TDSR) caps your total monthly debt repayments at 55% of gross monthly income. Banks like DBS, OCBC, UOB, HSBC and Standard Chartered must assess your entire loan profile under TDSR, including car loans, credit cards and other mortgages.[1][4][7]

Insider rule of thumb from investors around City Hall and Raffles Place: if your new loan instalment already pushes your TDSR near 50%, any future rate hike or loss of rental could put you under stress. This is where Homejourney’s real‑time SORA tracking and rate comparison across DBS, OCBC, UOB, Maybank, CIMB, RHB, Citibank and more become critical.Bank Rates

5. Decide How to Optimise Your Sequence of Buys

For long‑term investors eyeing several properties loan strategies, the sequence of purchases can change your lifetime tax bill by hundreds of thousands. Common portfolio financing approaches include:[1][2]