LTV & ABSD for Investment Property: Homejourney Guide

LTV (Loan-to-Value) limits for investment properties in Singapore cap bank loans at 45% for second properties and lower for subsequent ones, while ABSD starts at 20% for Singapore citizens' second homes and rises sharply for others. This LTV and ABSD for Investment Property Guide breaks down these rules to help investors plan financing accurately. At Homejourney, we prioritize your safety with verified data and tools like our bank rates page for comparing DBS, OCBC, UOB, and more.

Why LTV and ABSD Matter for Property Investment Financing

Investment property loans, often called buy-to-let mortgages or rental property financing, face stricter rules than owner-occupied homes to cool the market. Singapore's Monetary Authority (MAS) sets LTV limits, while IRAS enforces ABSD on top of standard Buyer's Stamp Duty (BSD).[3] These impact your cash outlay significantly—for a $1.5M condo as a second property, expect 55% downpayment plus 20% ABSD ($300,000).

Homejourney verifies this data from official sources, helping you avoid surprises. Link this to our pillar guide on Property Investment Financing Complete Guide for full coverage.

Current LTV Limits for Investment Properties (2025)

Loan-to-Value (LTV) is the maximum loan amount as a percentage of property value. For investor mortgages:

First property (bank loan): Up to 75% LTV.[4]
Second property or with existing loan: 45% LTV (up to 30-year tenure).[4][6]
Third or subsequent: 25% or lower, depending on outstanding loans (15-25% per MAS).[5]

HDB loans offer slightly higher LTV but cap at 75% for first-timers and exclude investment flats beyond resale rules. Use Homejourney's mortgage calculator to test scenarios instantly.

Real Example: Financing a $1.2M Condo as Second Property

For a $1.2M investment condo in Tanjong Pagar (near MRT Exit A, 5-min walk):

45% LTV = $540,000 max loan from banks like HSBC or Standard Chartered.
Downpayment: $660,000 (55%), payable 25% cash + 30% CPF.
Monthly repayment under TDSR (55% of income) limits servicing to ~$2,500 at 3.5% SORA-based rate.

Insider tip: Time purchases post-SORA dips; track via Homejourney for real-time rates.

ABSD Rates for Investors: Who Pays What?

Additional Buyer's Stamp Duty (ABSD) applies from your second residential property, calculated on purchase price or market value (higher).[1][2][3] Rates as of 2025 (post-April 2023 cooling measures):

Buyer Profile	2nd Property	3rd+ Properties
Singapore Citizens	20%	30%
Permanent Residents	30%	35%
Foreigners	60%	60%
Entities (Companies/Trusts)	65%	65%

Housing developers pay 40% (35% remittable + 5% non-remittable).[3] Pay within 14 days of S&P agreement via cash or CPF (new properties).[2]

Actionable Calculation: $1M Investment Property

Singapore Citizen buying second condo:

BSD: ~$23,200 (tiered 1-6%).
ABSD: 20% = $200,000.
Total upfront: $223,200 + LTV downpayment.

PRs face $300,000 ABSD—factor this into rental yield projections. See our Rental Yield vs Mortgage guide.

Strategies to Manage LTV and ABSD Costs

Minimize impact legally:

Joint names: Spouses buy as first for each if neither owns—0% ABSD, 75% LTV (but check MSR/TDSR).
Commercial pivot: No ABSD on shophouses; higher yields in areas like Jalan Besar.
Refinance existing: Boost equity for better LTV on next buy via Homejourney's multi-bank tool.
CPF timing: Use Ordinary Account post-ownership for ABSD refunds in some cases.[2]

Disclaimer: Rules change; consult IRAS/MAS. Homejourney ensures transparency—apply via Singpass for verified submissions to DBS, OCBC, UOB, HSBC, etc.

Homejourney Tools for Investor Mortgage Success

Compare investment property loans safely:

View live rates from 10+ banks on Homejourney bank rates.
One-click multi-bank applications with MyInfo auto-fill.
Search budget-fit properties on Homejourney property search.

For multiple properties, read Financing Multiple Investment Properties guide.

FAQ: LTV and ABSD for Investment Properties

1. What's the LTV for a third investment property?
Typically 25% max if you have prior loans; confirm with MAS rules via your bank.[5]

2. Can I use CPF for ABSD on buy-to-let?
Yes for new launches upfront; resale requires cash first, then CPF refund application.[2]

3. How does ABSD affect foreigners' rental property financing?
60% ABSD makes it costly—consider commercial or wait for policy shifts.[1][7]

4. Best banks for investor mortgages?
Compare DBS, UOB, Maybank on Homejourney—lowest SORA spreads win.

5. Is ABSD refundable for investors?
Limited cases like senior singles downsizing; entities rarely qualify.[2]

Ready to invest? Start with Homejourney's bank rates comparison for trusted, verified property investment financing. Link back to our pillar for full strategies—your safe path to Singapore property success.