LTV & ABSD for Investment Property: Homejourney Guide

For Singapore investors eyeing a second or subsequent property, LTV limits drop to 45% for bank loans on investment properties, while ABSD starts at 20% for Singapore Citizens on their second residential property. These rules from MAS and IRAS significantly impact your financing and total costs for buy-to-let or rental properties.[1][2][3][5]

This cluster article dives deep into LTV and ABSD for investment property, providing actionable steps for property investment financing. It connects to our pillar guide, Property Investment Financing Complete Guide Singapore, for full coverage on investor mortgages and rental property financing.

What is LTV and Why It Matters for Investment Properties

Loan-to-Value (LTV) ratio is the percentage of the property's purchase price or market value (whichever is higher) that banks will lend you. For investment properties in Singapore, LTV is stricter to curb speculation.[4][5]

Singapore Citizens or PRs buying a first property get up to 75% LTV. But for a second property or investment (treated as subsequent), it drops to 45% maximum for bank loans up to 30 years.[5][6] HDB loans offer even lower LTV at 25% for second properties.

Real example: For a $1.5M condo in Tanjong Pagar as your second property, maximum bank loan is $675,000 (45% LTV). You'll need $825,000 cash or CPF for the downpayment, plus other costs.[5]

Homejourney tip: Use our mortgage eligibility calculator to check your borrowing power instantly with Singpass integration for verified income and CPF data.

Current ABSD Rates for Investment Properties (2025)

Additional Buyer's Stamp Duty (ABSD) is a tax on top of standard BSD, aimed at cooling residential demand. Rates were last updated 27 April 2023 and remain in 2025.[1][2][3]

ABSD applies to residential properties (HDB flats, condos, landed homes) based on your profile and existing properties owned, using purchase price or market value (higher).[1]

Buyer Profile	1st Property	2nd Property	3rd+ Properties
Singapore Citizens	0%	20%	30%
PRs	5%	30%	35%
Foreigners	60%	60%	60%
Entities (Companies/Trusts)	65%	65%	65%

Source: IRAS and cooling measures.[1][2][3]

Example: Singapore Citizen buying a $1.2M investment condo as second property pays $240,000 ABSD (20%). Add BSD (~$30,000) for total stamp duties over $270,000.[1]

Insider tip: For resale HDB, pay ABSD in cash initially via lawyer, then refund from CPF after ownership. New properties allow CPF upfront.[2] Always verify on IRAS portal.

How LTV and ABSD Combine for Investment Property Loans

Investment property financing requires blending LTV downpayment with ABSD cash needs. Banks assess under TDSR (Total Debt Servicing Ratio, max 55%) and MSR for HDB.[4]

Step-by-step calculation for $1M second condo:

LTV downpayment: 55% ($550,000) – first 5% cash/CPF, rest 50% cash or CPF.
ABSD: 20% ($200,000) – cash or CPF (post-ownership for resale).
BSD: ~$23,000.
Total upfront cash/CPF needed: ~$773,000. Loan: $450,000 (45% LTV).

Compare rates from DBS, OCBC, UOB, HSBC on Homejourney's bank rates page to find the best investment property loan.

For multiple properties, LTV stays at 45% but TDSR tightens. See our guide Financing Multiple Investment Properties: Singapore LTV Guide.

Strategies to Optimize LTV and Manage ABSD for Investors

1. Joint names with spouse/child: If spouse has no property, it counts as their first (0% ABSD for Citizens), but LTV still 45% for second-timer.[2]

2. Commercial property pivot: No ABSD on shophouses/offices, higher LTV possible (up to 60-80%), ideal for buy-to-let without residential taxes.[2]

3. Decouple for HDB upgrade: One spouse sells HDB share for cash, buys private as first-timer (75% LTV, lower ABSD).[8]

4. Refinance existing: Boost equity for downpayment on new investment. Homejourney simplifies with multi-bank comparisons.

5. Time your buy: Track SORA for low-rate locks. Homejourney offers real-time SORA tracking.

Disclaimer: Rules change; consult IRAS/MAS/IRAS and a professional. Homejourney verifies data for trust but is not financial advice.

Homejourney: Safe Financing for Property Investors

At Homejourney, user safety and transparency drive everything. Compare buy to let mortgage options from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank securely via one Singpass login. Apply to multiple banks instantly – no endless forms.

Search investment properties matching your budget on Homejourney property search. Post-purchase, maintain value with aircon services.

FAQ: LTV and ABSD for Investment Properties

1. Can I use CPF for ABSD on investment properties?
Yes, for new launches upfront; resale requires initial cash, then CPF refund application within 14 days.[2]

2. What's the max LTV for a third investment property?
45% for bank loans, same as second, subject to TDSR.[4][5]

3. Do foreigners get any ABSD relief for rentals?
No, flat 60% ABSD on any residential, making commercial alternatives attractive.[1][2]

4. How does ABSD affect rental yield calculations?
Increases upfront costs, lowering net returns. Factor into cash flow; use Homejourney calculator.[1]

5. When to apply for ABSD remission?
For entities/developers under strict IRAS conditions, like building ≤4 units.[3]

Ready to invest safely? Visit Homejourney bank rates for LTV and ABSD for investment property guide tools, rate comparisons, and expert WhatsApp support. Link back to our pillar for complete property investment financing strategies.