LTV and ABSD for Investment Property: Homejourney’s Safe Financing Guide

For Singapore property investors, the two rules that shape every investment purchase are Loan-to-Value (LTV) and Additional Buyer’s Stamp Duty (ABSD). Together, they decide how much you can borrow and how much extra tax you must pay when you buy your next investment property.

This LTV and ABSD for Investment Property Guide explains the latest MAS and IRAS rules in clear terms, shows how they apply to multiple property financing and portfolio financing, and gives practical examples so you can plan several properties loan strategies safely. Homejourney’s tools let you check your borrowing power, compare bank rates, and apply safely to multiple banks in one place, with full transparency.

How LTV and ABSD Shape Your Investment Property Strategy

In simple terms, LTV is the maximum percentage of a property’s price or valuation that banks can lend you, while ABSD is an extra tax on top of normal Buyer’s Stamp Duty when you buy additional residential properties in Singapore.[3][5]

For investors trying to build a property empire financing plan, these two rules decide:

How much cash and CPF you must put in as downpayment
How many properties you can hold under your name before hitting loan and tax limits
Whether it is safer to buy now, wait, or restructure ownership (for example, spouse or trust)

This cluster article supports our main pillar guide on investment property financing LTV and ABSD for Investment Property: Homejourney’s 2026 Guide , by going deeper into tactical decisions around LTV, ABSD, multiple property financing, and portfolio financing strategies.

Core Concepts: LTV for Investment Property in Singapore

Under MAS macroprudential rules, banks must follow strict LTV limits depending on how many property loans you already have and your loan tenure.[5] For residential investment properties financed with banks (not HDB loans), the broad pattern is:

First housing loan: up to about 75% LTV if tenure ≤ 30 years and loan does not extend beyond age 65[1]
Second and subsequent loans: much lower LTV bands (often 45% or 35% depending on MAS guidelines and tenure)[5]

On top of LTV, banks must also apply:

Total Debt Servicing Ratio (TDSR): usually capped at 55% of your gross monthly income for private property loans
Mortgage Servicing Ratio (MSR): applies mainly to HDB and EC purchases, not typical private investment condos

In practice, this means that if you already own one condo in, say, Punggol or Queenstown, your second private condo in areas like Tampines or Pasir Panjang will likely attract both a lower LTV and higher ABSD.

ABSD for Investment Properties: Latest Rates and Profiles

Additional Buyer’s Stamp Duty (ABSD) is charged on top of normal Buyer’s Stamp Duty (BSD) whenever you buy residential property, based on your citizenship and how many properties you already own. The official rates are published by IRAS and were most recently revised in April 2023, remaining in force through 2025–2026.[2][3]

For individual buyers, the key ABSD bands (as at 2025–2026) are:[2][3]

Singapore Citizens: 0% on first property, 20% on second, 30% on third and subsequent[2]
Singapore PRs: 5% on first property, 30% on second, 35% on third and subsequent[2]
Foreigners: 60% on any residential property[1][2][6]
Entities & trustees: 65% ABSD; housing developers pay 35% + 5% non-remittable[3]

IRAS also applies the highest applicable profile when there are multiple buyers: if you co-purchase three properties with a co-buyer of a different profile, IRAS treats each property separately and applies the highest ABSD profile for that specific count of properties.[3]

For example, if you are a Singapore Citizen already owning one condo in Sengkang and you buy a second condo in Hougang for investment, the additional purchase will attract 20% ABSD plus BSD, and probably a lower LTV than your first loan.[2][3]

How LTV and ABSD Interact for Multiple Property Financing

When planning multiple property financing or portfolio financing, you must consider LTV and ABSD together. A common mistake I see among investors in mature estates like Toa Payoh or Bishan is to focus only on rental yield and forget the upfront ABSD and reduced LTV.

Here is how they interact in practice:

The more properties you own, the lower your LTV and the higher your ABSD rate.
Lower LTV means a higher cash/CPF outlay on each additional property.
Higher ABSD significantly raises your all-in entry cost, which affects your true return on equity.

If your goal is a several properties loan or “property empire financing” strategy, it is often more sustainable to:

Pay down existing loans to improve your TDSR position
Stagger purchases so you do not hit multiple ABSD tiers too quickly
Consider spouse ownership planning (within legal and tax rules) to manage ABSD exposure

For deeper strategies across many units, refer to our investor-focused playbooks: and Rental Yield vs Mortgage Cash Flow: Homejourney’s 2026 Investor Playbook .

Real-World Example: Second Investment Condo Purchase

Consider a Singapore Citizen who already owns a fully paid 3-room HDB in Ang Mo Kio and now wants to buy a S$1.8 million investment condo near Tanjong Pagar MRT to rent to CBD tenants.

Step 1: ABSD and BSD Calculation

Because this is the buyer’s second property, ABSD is 20% of the higher of purchase price or valuation.[2][3]

Assume price = S$1,800,000, valuation = S$1,800,000
ABSD = 20% × S$1,800,000 = S$360,000

Buyer’s Stamp Duty (BSD) is tiered (as at 2025–2026):[1][2]

1% on first S$180,000 = S$1,800
2% on next S$180,000 = S$3,600
3% on next S$640,000 = S$19,200
4% on remaining S$800,000 = S$32,000
Total BSD ≈ S$56,600

Total stamp duties payable upfront ≈ S$416,600 (ABSD + BSD), usually within 14 days of exercising the Option to Purchase.[1][3]

Step 2: LTV and Cash/CPF Outlay

Assume this is financed with a bank loan from DBS or OCBC, tenure 25 years, and the buyer has no outstanding housing loan (because the HDB is fully paid). MAS allows up to about 75% LTV on this first housing loan with a bank.[1][5]

Maximum loan at 75% LTV ≈ S$1,350,000
Minimum equity (cash + CPF) = 25% × S$1,800,000 = S$450,000

On top of that, the investor needs ≈ S$416,600 for BSD + ABSD. If part of the ABSD is funded by CPF (subject to CPF Board rules), the cash flow improves, but the CPF used will reduce retirement savings. Many local investors I speak with in the heartlands tend to underestimate how large this upfront amount feels when you are also budgeting for renovation and a few months of vacancy.

This is why it is critical to run the full numbers using Homejourney’s mortgage calculator at Bank Rates before committing to an Option.

Interest Rates, TDSR and Safe Debt Levels

Beyond LTV and ABSD, your actual borrowing capacity is constrained by TDSR and interest assumptions. MAS requires banks to stress-test your income at a higher interest rate buffer when computing TDSR, and banks in Singapore typically peg floating-rate loans to SORA or offer fixed packages.

The chart below shows recent interest rate trends in Singapore:

Homejourney tracks live 3M and 6M SORA and fixed package rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and others so you can see how your monthly instalment might change over time. Use Bank Rates to compare current bank offers and estimate repayments safely.

Practical Steps to Plan Multiple Investment Properties Safely

If you intend to own more than one investment property – whether two condos in the East Coast and CBD, or a mix of EC and resale condo – take a structured approach to LTV and ABSD.

1. Map Out Your Property Sequence

List out your planned purchases over the next 5–10 years, including:

Target price range for each property
Intended holding period and exit plan (sell, hold, refinance)
Whether you might sell an existing unit before buying the next

This lets you see where ABSD will spike and how LTV will fall as you add more loans. Our detailed strategy guides such as Financing Multiple Investment Properties in Singapore: Homejourney’s 2026 Strate... can help frame these decisions.

2. Check TDSR and LTV Early

Before you even start shortlisting units on Property Search , use Homejourney’s eligibility calculator at to:

Estimate your maximum loan based on current income and debt
See how a new loan will impact your TDSR
Test different scenarios (e.g. paying down credit cards, car loans)

Because MAS rules are strict, what feels affordable monthly may still fail the bank’s TDSR test, especially for self-employed or commission-based income earners.

3. Optimise Loan Structure, Not Just Rate

For portfolio financing, the “cheapest rate” is not always the safest. Consider:

Whether a slightly shorter tenure improves your long-term interest cost without over-straining cash flow
Staggering repricing/refinancing dates across properties to avoid interest shocks all at once
Splitting loans across different banks (e.g. DBS for first property, UOB or HSBC for second) to diversify package risk

Homejourney’s multi-bank application at Bank Rates lets you submit once and receive offers from multiple banks, so you can compare structure, not just headline rates.

4. Stress-Test Rental and Cash Flow

Especially in areas with more volatile rents like city-fringe OCR projects, always test:

Monthly instalment at +1% and +2% interest
3–6 months of vacancy per year for conservative planning
Additional costs such as maintenance, property tax, and aircon servicing

For ongoing costs like aircon maintenance in humid estates such as Punggol or Pasir Ris, use Aircon Services to budget realistic servicing expenses. Then cross-check your rental yield versus mortgage cash flow with Rental Yield vs Mortgage Cash Flow: Homejourney’s 2026 Investor Playbook .

CPF Usage, HDB vs Bank Loans and Upgraders

For HDB upgraders turning their first flat into an investment property, rules get more complex. If you keep your HDB and buy a private condo, you will likely face ABSD and stricter LTV limits, depending on whether you take an HDB loan or bank loan and whether you dispose of the flat within the ABSD remission window.

Key points for upgraders:

HDB loans have their own LTV caps (usually lower than bank loans) and MSR rules.
ABSD remission may be available for married couples upgrading, but only if conditions are strictly met and existing property is sold within the stipulated period (check IRAS/HDB rules directly).
CPF usage for ABSD depends on the property type and timing; for new launches you can often use CPF to pay ABSD once you are legal owner, while resale may require initial cash.[2]

Because these rules are updated periodically, always verify the latest conditions on HDB and IRAS websites and speak with a solicitor. Homejourney’s role is to help you model the numbers safely, but final legal and tax advice should come from licensed professionals.