LTV & ABSD for Singapore Investment Properties: 2026 Guide | Homejourney
LTV limits for investment properties in Singapore cap bank loans at 45% for a second property and 35% for third or subsequent ones, while ABSD starts at 20% for Singapore Citizens' second properties and reaches 60% for foreigners. These rules from MAS and IRAS significantly impact property investment financing costs and leverage. This Homejourney cluster guide breaks down calculations, real examples, and strategies for investors, linking back to our Property Investment Financing: Complete Singapore Guide | Homejourney ">Property Investment Financing: Complete Singapore Guide.
What Are LTV and ABSD in Investment Property Context?
Loan-to-Value (LTV) ratio is the maximum loan amount banks can offer as a percentage of the property's value, set by the Monetary Authority of Singapore (MAS) to ensure prudent borrowing[1][6]. For investment property loans, LTV drops sharply with each additional property to curb speculation.
Additional Buyer's Stamp Duty (ABSD) is an extra tax on top of Buyer's Stamp Duty (BSD), applied based on buyer profile and property count, per IRAS rules[3]. Unlike BSD, ABSD cannot be paid with CPF funds and must be settled in cash within 14 days of signing[1].
Understanding these is crucial for buy to let mortgage planning, as they dictate down payments and total costs. Homejourney verifies all data from official sources like MAS and IRAS to help you invest safely.
Current LTV Limits for Investment Properties (2026)
MAS enforces stricter LTV for properties beyond your first home. Here's the breakdown for residential loans:
| Number of Outstanding Loans | Max Standard LTV | Max Extended Tenure LTV |
|---|---|---|
| 1st property (0 loans) | 75% | 55% |
| 2nd property (1 loan) | 45% | 25% |
| 3rd+ properties | 35% | 15% |
Data from MAS guidelines[1][6]. Extended tenure applies to loans over 30 years.
For a S$2M condo as your second property: Max loan at 45% LTV is S$900,000, requiring S$1.1M down payment (at least 5-10% cash, rest CPF if eligible)[1]. Foreigners pay full cash down payments without CPF access.
ABSD Rates for Different Investor Profiles
ABSD rates as of 2026 (unchanged from late 2023 per IRAS):
- Singapore Citizens: 0% (1st), 20% (2nd), 30% (3rd+)[2][5]
- PRs: 5% (1st), 30% (2nd), 35% (3rd+)[2][4]
- Foreigners: 60% (any property)[1][2]
- Entities/Companies: 65%[3]
In joint purchases, the highest rate applies to the full value[3]. Example: S$1.5M condo for a Citizen with one property: ABSD = S$300,000 (20%), plus BSD ~S$50,000[1].
These rates make rental property financing costlier for investors, but Homejourney's tools help model scenarios accurately.
Real Example: Financing a S$2M Condo in Tanjong Pagar
Consider buying a 2-bedroom condo in Tanjong Pagar (near MRT Exit A, ~S$2M market value). As a Singapore Citizen with an HDB flat:
- LTV: 45% max loan = S$900,000 from banks like DBS or OCBC[1]. Check Homejourney bank rates for latest investor mortgage offers.
- Down payment: S$1.1M (S$200K cash min + CPF).
- ABSD: S$400,000 (20%).
- BSD: ~S$70,000[1].
- Total upfront: ~S$1.57M cash/CPF.
Monthly repayment under TDSR (60% of income) limits further. Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator to test affordability. Insider tip: Tanjong Pagar yields 3-4% rentals, offsetting costs—verify via Projects Directory .
Actionable Steps for Investment Property Buyers
Follow this framework for safe investing:
- Assess profile: Count existing properties via Singpass on IRAS portal.
- Calculate costs: Use LTV/ABSD calculators; factor TDSR/MSR.
- Compare loans: View DBS, OCBC, UOB rates on Homejourney's bank rates page. Apply via Singpass for multi-bank offers.
- Budget extras: Legal fees (S$3K), maintenance—link to Aircon Services for post-purchase.
- Search properties: Filter budgets on Homejourney property search.
Disclaimer: This is general info; consult professionals. Rates per MAS/IRAS 2026[1][3].
Strategies to Optimize LTV and Manage ABSD
For multiple properties, explore interest-only loans (see Best Bank Loans for Property Investors: Interest-Only & IO Loans Explained ). Sell existing assets to reset ABSD tier, but watch SSD (up to 12% if under 4 years)[1].
Refinance via Homejourney: Compare Best Bank Loans for Property Investors in Singapore 2026 | Homejourney for 2026 deals. Foreign investors: LDAU needed for landed; condos only[1].
FAQ: LTV and ABSD for Investment Properties
Q: Can I use CPF for ABSD on investment properties?
A: No, ABSD requires cash. BSD allows partial CPF[1][3].
Q: What's the LTV for my third investment condo?
A: 35% standard, so 65% down payment min[1]. Use Homejourney calculator.
Q: How does joint buying affect ABSD?
A: Highest profile rate applies fully, e.g., Citizen + Foreigner = 60%[3].
Q: Are there ABSD remissions for investors?
A: Limited; check IRAS for trusts/developers[3]. Citizens/PRs have no general remission.
Q: Best banks for investment loans?
A: Compare DBS, OCBC, UOB on Homejourney for competitive investment property loan rates.
Ready to invest safely? Start with Homejourney bank rates for verified rates and applications. Explore our pillar guide Property Investment Financing: Complete Singapore Guide | Homejourney for full LTV and ABSD for Investment Property Guide.
