LTV and ABSD for Investment Property Guide: Key Rates for Singapore Investors
For Singapore citizens buying a second investment property in 2025, the maximum LTV is 45% (or 25% if tenure exceeds 30 years or past age 65), requiring a 55% downpayment with 25% in cash, while ABSD is 20% of the purchase price or market value.[2][1]
This cluster article dives deep into these rules, helping investors calculate costs accurately. It connects to our pillar guide on LTV for Investment Property Singapore for full coverage. Homejourney prioritizes your safety with verified data from IRAS and MAS, ensuring trusted decisions.
What is LTV for Investment Property?
Loan-to-Value (LTV) ratio is the maximum loan amount banks can offer as a percentage of the property's value. For investment properties (second or subsequent homes), LTV limits curb speculation per MAS guidelines.[4]
Singapore's rules differ by existing loans:
- No outstanding loans: 75% LTV (55% if tenure >30 years/age >65)
- 1 outstanding loan: 45% LTV (25% if tenure >30 years/age >65)
- 2+ outstanding loans: 35% LTV (15% if tenure >30 years/age >65)
Minimum cash downpayment is 25% for second properties.[2] Use Homejourney's mortgage calculator to check eligibility instantly with Singpass.
Investor LTV Limit Example
Buying a $1.5M condo as a second property with one existing loan: Max loan = 45% ($675,000). Downpayment = 55% ($825,000), with $375,000 (25%) cash and rest via CPF.[2]
If tenure exceeds 30 years, LTV drops to 25% ($375,000 loan), total downpayment 75% ($1.125M cash component $375,000). Compare rates from DBS, OCBC, UOB on Homejourney bank rates.
ABSD Rates for Second Property and Investors
Additional Buyer's Stamp Duty (ABSD) is a tax on residential purchases beyond the first, calculated on purchase price or market value (higher).[1][3]
2025 rates (effective since April 2023, unchanged):
| Buyer Type | 1st Property | 2nd Property | 3rd+ |
|---|---|---|---|
| Singapore Citizens | 0% | 20% | 30% |
| PRs | 5% | 30% | 35% |
| Foreigners | 60% | 60% | 60% |
| Entities | 65% | 65% | 65% |
Source: IRAS.[1][3] For a $1M second property, SC pays $200,000 ABSD.[2]
Loan to Value Investment and Down Payment Investor Strategy
Combine LTV and ABSD: For $1.5M second condo (SC), ABSD $300,000 + BSD ~$22,600 + 55% downpayment $825,000 (25% cash $375,000). Total upfront: ~$1.5M.[1][2]
Actionable Tip: Sell first property first to reset to 75% LTV and 0% ABSD, but check HDB minimum occupation period (MOP). Homejourney verifies timelines for safe transactions.
Practical Steps: Calculate Your Second Property LTV and ABSD
- Assess Profile: Count existing residential loans and properties via Singpass on IRAS portal.
- Estimate Costs: Use purchase price/market value for ABSD (IRAS e-Stamping). Factor TDSR (60% debt-to-income).
- Check CPF: OA usage limited post-BRS ($106,500 in 2025).[2]
- Compare Loans: View DBS, OCBC, UOB, HSBC rates on Homejourney. Apply multi-bank via Singpass.
- Search Properties: Filter budgets on Homejourney search.
Example: $2M investment in Tanjong Pagar condo. SC second property: ABSD 20% ($400K), LTV 45% ($900K loan), cash down 25% ($500K). Total cash outlay high—plan via Homejourney calculator.
Homejourney Tips for Safe Investment Property Purchases
At Homejourney, trust starts with transparency. Track live SORA rates, auto-fill apps with MyInfo, and get WhatsApp support. Avoid pitfalls like entities at 65% ABSD—stick to personal names.[3]
- Insider Tip: Time buys post-MOP expiry for HDB-to-private upgrades, maximizing CPF refunds.
- Refinance first loan via Homejourney to free equity.
- Consult pros for ABSD remission (rare, time-bound).[1]
Disclaimer: Rules per MAS/IRAS 2025; consult advisor. Homejourney provides tools, not advice.
FAQ: LTV and ABSD for Investment Property
What is the LTV investment property limit for second property?
Singapore citizens get 45% LTV with one existing loan (25% if extended tenure).[2]
How much down payment investor needs for $1.2M second condo?
55% total ($660K), 25% cash ($300K) + CPF/ABSD 20% ($240K).[1][2]
Can I avoid ABSD on second property?
Sell first property before buying to qualify as first-time (proof required).[1]
Investor LTV limit for PRs?
Same LTV as citizens, but ABSD 30% on second property.[1][2]
Where to compare loan to value investment options?
Homejourney's bank rates page for DBS to Maybank.
Master your investment with Homejourney—compare rates, calculate eligibility, and search properties safely today. Link back to our pillar for full LTV details: LTV for Investment Property Singapore Guide.