LTV and ABSD for Investment Property: Homejourney’s Safe 2026 Playbook

For example, IRAS’ ABSD rules state that when multiple properties are purchased jointly by buyers of different profiles, each property is counted separately and the highest ABSD profile applies to each property.[4] This is critical when couples structure portfolio purchases.

Current LTV Limits for Investment Property Loans

MAS sets different LTV limits depending on how many outstanding housing loans you already have. For borrowers with existing residential property loans, LTV is tighter to reduce systemic risk.[5]

In practice, this means:

• First housing loan: higher LTV (up to around 75% for private properties when tenure and age conditions are met, based on current cooling measures).[1][3]
• Second housing loan: significantly lower LTV band (MAS guidance states 15–25% LTV when one or more loans are outstanding for certain loan types).[5]
• Third and subsequent loans: similarly tight or even lower LTV ranges, with higher cash requirements and full TDSR checks.[5]

Because MAS rules are periodically adjusted, always verify the current official LTV limits with your bank or licensed broker. Homejourney’s bank rates page Bank Rates is updated with the latest lending rules across major banks like DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and others, based on published bank and MAS data.

LTV is also affected by:

• Your loan tenure and whether it extends beyond age 65
• Property type (HDB vs private)
• Whether the loan is in Singapore dollars
• Your total debt servicing ratio (TDSR), which caps your total monthly debt obligations as a share of income

How ABSD Works for Second and Third Properties

ABSD is the main cost hurdle when you move from owning one home to multiple investment properties. IRAS’ ABSD schedule sets different rates for each buyer profile and property count.[4]

In general, for residential properties purchased on or after 27 April 2023, the ABSD table (for individuals) is structured so that:

• Singapore Citizens pay ABSD from the second property onward, with a higher rate from the third property.[4][7]
• Singapore PRs pay ABSD from the first property upward, at increasing rates.[4]
• Foreigners pay a very high ABSD rate on any residential property purchase.[1][4]
• Entities and trustees typically face the highest ABSD rate (65% as per IRAS for entities and trustees buying residential property).[4]

ABSD is computed on the higher of the stated purchase price or market value and rounded down to the nearest dollar, with a minimum of S$1.[4] It must be paid within 14 days of exercising the Option to Purchase for local deals.[4][1]

For example, a foreign buyer purchasing a S$2 million condo faces an ABSD rate of 60%, meaning S$1.2 million in ABSD alone.[1] This rate was introduced in April 2023 and continues to apply through 2026 as part of ongoing cooling measures.[1]

Real-World Example: Buying a Second Investment Condo Safely

Consider a Singapore Citizen couple in their late 30s who currently own a 4‑room HDB flat in Punggol and are looking to buy a second property—a S$1.5 million new launch condo near Lentor MRT as an investment.

Key constraints they face:

• LTV: Because they have an existing HDB loan or bank loan, MAS rules mean their LTV for the second property will be significantly lower than for a first loan (e.g. a 15–45% range depending on circumstances, with at least 25% equity required from cash/CPF, subject to prevailing limits).[5]
• ABSD: As Singapore Citizens buying a second residential property, they must pay ABSD upfront at the rate applicable to citizens’ second properties on the S$1.5 million value.[4][7]
• TDSR: Their total housing and other debt repayments cannot exceed the MAS TDSR threshold (currently 55% of gross monthly income).

A safe approach many local investors use is to:

1. Use Homejourney’s mortgage eligibility calculator Bank Rates to check how much they can borrow safely, taking into account their existing HDB instalment.
2. Estimate ABSD payable using IRAS’ ABSD rates and set aside funds (often in cash, because CPF usage for ABSD can be constrained for some resale scenarios).[4][2]
3. Check rental yields for similar units in the area via project data on the Homejourney projects directory Projects Directory and cash flow analysis guides like Rental Yield vs Mortgage: Cash Flow Analysis | Homejourney Guide Rental Yield vs Mortgage: Cash Flow Analysis | Homejourney Guide .

Living in the North‑East and visiting Lentor during weekends, you’ll notice demand from families due to proximity to good schools and direct MRT access to Orchard and Raffles Place. This on‑ground feel, plus data from URA and HDB transacted prices, gives investors a more realistic rental and price appreciation expectation.

LTV, ABSD and Cash Flow for Multiple Property Financing

When you plan several properties loan strategies—e.g. owning three or more units over time—the interaction between lower LTV, higher ABSD and TDSR can make or break your portfolio.

For example:

• Lower LTV on second and third properties means higher equity per purchase.
• Rising ABSD with each additional property reduces your net return unless rental yields are very strong.
• Monthly instalments across all loans must still fit within your TDSR cap, even if you have solid CPF balances.

This is why Homejourney emphasizes safe portfolio financing. In our investor-focused articles—such as Financing Multiple Investment Properties in Singapore: Homejourney’s Safe Investor Playbook 2026 Financing Multiple Investment Properties in Singapore: Homejourney’s Safe Invest... and Financing Multiple Investment Properties Safely with Homejourney Financing Multiple Investment Properties Safely with Homejourney —we show how to stress-test your mortgage against vacancy, rising rates and policy changes.

Use Homejourney’s eligibility calculator to simulate different scenarios: keep your existing flat versus sell, 75% versus 55% LTV assumptions, and buffer for at least 1.0–1.5 percentage points higher interest rates than today.

Interest Rates, SORA and Their Impact on LTV Affordability

While MAS sets maximum LTV, banks still evaluate your loan based on interest rates, income stability and credit profile. Most bank loans in 2026 are either fixed for a short lock‑in or pegged to 3M or 6M SORA (Singapore Overnight Rate Average), the main benchmark rate published by MAS.

As of 2026, SORA rates have stabilised from the sharp hikes earlier in the decade, but remain higher than the ultra-low levels seen pre‑2020, meaning monthly instalments are still meaningfully above historical averages.[5][6]

The chart below shows recent interest rate trends in Singapore:

Homejourney tracks live 3M and 6M SORA, plus headline package rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and other major lenders on our bank rates page Bank Rates . This helps you time refinancing or new purchases more safely, especially if you are stretching your LTV on a second or third investment property.

Insider Tips from the Ground: How Local Investors Manage LTV and ABSD

Having walked through new launch showflats from Tampines to Queenstown and spoken with many agents and lawyers over the years, a few patterns stand out among cautious Singapore investors:

• Staggered entry: Instead of rushing into two properties within a year, many buy a second unit, stabilise rental and cash flow for 2–3 years, then assess if a third property is still feasible under updated ABSD and LTV rules.
• District selection: Investors often favour areas with proven rental demand—e.g. City Fringe (Geylang, Balestier, Queenstown), Paya Lebar (business hub), or areas within 8–10 minutes walk from MRT interchanges. Walking these neighbourhoods in the evenings gives a clearer sense of tenant demographics and competition.
• Exit strategy first: Before committing to an LTV‑max loan, they consider how easily the property can be sold or refinanced if MAS tightens TDSR or if ABSD rises again.

One very local “insider” habit is to check walking routes at night from MRT exits to the condo, for example from Farrer Park MRT to nearby city-fringe freehold apartments. A well-lit, sheltered 7‑minute walk often commands stronger tenant interest than a 15‑minute walk with multiple road crossings, which materially affects rental assumptions and your ability to service a high‑LTV mortgage safely.

Tactical Steps to Plan Safe Property Empire Financing

If your goal is to build a small property empire financing strategy—say 2–4 investment units over 10–15 years—use this structured approach:

1. Map your property sequence
   Decide the likely order: first home → first investment → possible second investment. For each step, estimate LTV and ABSD using current MAS and IRAS rules.[4][5]


2. Check borrowing power with TDSR
   Use Homejourney’s mortgage eligibility calculator to see how much you can borrow while keeping TDSR below the MAS cap, then build in a safety margin (e.g. target 40–45% instead of the full 55%).


3. Compare multi-bank loan options
   On Homejourney’s bank rates page Bank Rates , compare fixed and SORA‑pegged rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and more. This is particularly important when LTV is tight, because a small difference in interest rate can make or break your cash flow.


4. Plan ABSD funding
   Determine whether ABSD will be funded purely by cash or partially with CPF (where allowed) and whether that still leaves enough CPF for emergencies and retirement. Remember ABSD is due within 14 days of exercising the OTP.[4][1][2]


5. Stress-test with vacancy and maintenance
   Use cash flow guides like Rental Yield vs Mortgage Cash Flow: Homejourney’s 2026 Investor Playbook Rental Yield vs Mortgage Cash Flow: Homejourney’s 2026 Investor Playbook to stress‑test 10–20% vacancy and realistic maintenance costs (e.g. quarterly aircon servicing via Aircon Services ).

If you already hold more than one property and are unsure whether to refinance, partially pay down, or sell before buying again, consider speaking with a licensed adviser. Homejourney’s mortgage brokers (accessible when you apply via our bank rates page Bank Rates ) can help interpret MAS and IRAS rules for your specific profile, but they do not replace independent financial advice.

How Homejourney Supports Safe, Transparent Multiple Property Financing

Homejourney is built around user safety, verification and transparency. For investors exploring multiple property financing, we provide:

• Bank rate comparison: View current home loan packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and others in one place Bank Rates .
• Mortgage eligibility calculator: Instantly see your borrowing power and indicative monthly instalments based on income, existing debts and assumed LTV .
• Multi-bank application: Submit one application through Homejourney and receive offers from multiple banks, using Singpass/MyInfo to auto‑fill income, employment and CPF data for faster, more accurate approvals Bank Rates .
• Verified market data: Explore transacted prices, project details and neighbourhood insights via our projects directory Projects Directory and property search Property Search to ensure your investment assumptions are realistic.

References

1. Singapore Property Market Analysis 5 (2026)
2. Singapore Property Market Analysis 4 (2026)
3. Singapore Property Market Analysis 1 (2026)
4. Singapore Property Market Analysis 3 (2026)
5. Singapore Property Market Analysis 7 (2026)
6. Singapore Property Market Analysis 2 (2026)
7. Singapore Property Market Analysis 6 (2026)