LTV & ABSD for Singapore Investment Properties: 2026 Guide | Homejourney

LTV (Loan-to-Value) limits how much you can borrow for investment properties in Singapore, while ABSD (Additional Buyer's Stamp Duty) adds hefty costs based on your buyer profile and property count. For investors, Singapore Citizens face 45% LTV and 20% ABSD on a second property, dropping to 35% LTV for third properties with higher ABSD.[1][2][3] This LTV and ABSD for Investment Property Guide from Homejourney breaks it down with 2026 calculations, real examples, and steps to finance smartly while prioritizing your safety and trust.

Investment properties demand careful planning amid MAS regulations and IRAS stamp duties. Homejourney verifies data from official sources like MAS and IRAS, ensuring you make confident decisions in a trusted environment.[1][3] This cluster focuses on LTV and ABSD tactics, linking back to our Property Investment Financing: Complete Singapore Guide | Homejourney ">Property Investment Financing: Complete Singapore Guide pillar for full coverage.

What is LTV and Why It Matters for Investors

The Loan-to-Value (LTV) ratio is the maximum loan amount banks approve as a percentage of the property's value, set by the Monetary Authority of Singapore (MAS) to curb debt risks.[1][5] For investment properties, LTV tightens with each existing loan: 75% for your first property (no outstanding loans), 45% for a second, and 35% for third or more.[1]

Extended tenure LTVs are lower (55%, 25%, 15%) for loans over 30 years, but most investors stick to standard for better rates.[1] Foreign investors get no CPF downpayment option, requiring full cash for the minimum.[1] Use Homejourney's mortgage calculator to test scenarios instantly.

ABSD Rates Breakdown for Singapore Investors (2026)

Additional Buyer's Stamp Duty (ABSD) is an extra tax on top of Buyer's Stamp Duty (BSD), calculated on the higher of purchase price or market value, payable within 14 days.[1][3] Rates depend on your profile:

• Singapore Citizens (SC): 0% first property, 20% second, 25-30% third+.[2][3][4]
• Singapore Permanent Residents (SPR): 5% first, 25-30% second, 30-35% third+.[2][3]
• Foreigners: Flat 60% on any property.[1][2][4]
• Entities/Companies: 65%.[3]

For joint buys, the highest profile rate applies to the whole property.[3] ABSD can't use CPF; it's pure cash.[1] Check IRAS for updates, as rates rose post-2023.[3]

Real Example: Buying a $2M Condo as Second Investment Property

Consider a Singapore Citizen investor buying a $2M condo in District 15 (e.g., near Katong, high rental demand) as their second property.[1]

• LTV: 45% max loan = $900,000. Downpayment: $1.1M (25% cash min $100k + CPF).[1]
• BSD: ~$69,600 (progressive: 1-6%).[1]
• ABSD: 20% = $400,000.[2][4]
• Total upfront cash: ~$1.57M (downpayment + duties, excluding fees).

For foreigners: ABSD jumps to $1.2M, total cash ~$2.07M + no CPF loan aid.[1] This impacts rental yield mortgage viability—aim for yields covering payments via Rental Yield vs Mortgage Payments: Singapore Investment Guide | Homejourney ">Rental Yield vs Mortgage Payments guide.

Actionable Steps: Calculate Your LTV and ABSD

Follow this framework for investment decisions:

1. Assess profile: Count existing properties via Singpass on IRAS portal.[3]
2. Estimate costs: Use formula: ABSD = Rate x Higher(Purchase Price, Market Value). Add BSD via IRAS tiered table.[1][3]
3. Check LTV: Loans count all residential mortgages. View limits on Homejourney bank rates.[1][5]
4. Factor TDSR: Total debt ≤60% income; MSR for HDB.[5]
5. Compare loans: DBS, OCBC, UOB offer competitive rates for investors—apply multi-bank via Homejourney with Singpass.Best Bank Loans for Property Investors in Singapore 2026 | Homejourney

Pro tip: Target properties with positive cash flow property potential, where rental income loan payment offsets mortgage. Search budgets on Homejourney property search.

Financing Tips for Multiple Investments

For third+ properties, 35% LTV means larger cash needs.[1] Banks like HSBC and Standard Chartered assess investment return mortgage viability, factoring rental offsets under TDSR.[5] Foreigners face 60% ABSD barrier, pushing joint SC buys (but highest rate applies).[3]

Homejourney's tools verify eligibility safely: Compare DBS vs OCBC rates, submit one app to UOB, Maybank, CIMB via Singpass for instant pre-approvals. Link to Financing Multiple Investment Properties: Singapore 2026 Guide | Homejourney ">Financing Multiple Investment Properties guide for more.

Disclaimer: Rates per MAS/IRAS Feb 2026; consult professionals. Homejourney provides info, not advice.

FAQ: LTV and ABSD for Investment Properties

1. What's the ABSD for a Singaporean's second investment property?
Singapore Citizens pay 20% ABSD on their second residential property.[2][4]

2. Can rental income reduce my LTV downpayment?
No, LTV is fixed by MAS based on loans owned; rentals help TDSR affordability.[1][5] Calculate rental yield mortgage on Homejourney.

3. Do foreigners pay ABSD on HDB investments?
Foreigners can't buy HDB resale without approval; condos attract 60% ABSD.[1][3]

4. How does joint ownership affect ABSD?
Highest buyer profile rate applies to full value (e.g., SC + Foreigner = 60%).[3]

5. Where to check current LTV limits?
MAS site or Homejourney's bank rates page for verified updates.[1][5]

Master LTV and ABSD for Investment Property Guide essentials with Homejourney's trusted tools. Start with our bank rates comparison for DBS, OCBC, UOB offers, or explore properties on property search. For full strategies, read our pillar: Property Investment Financing: Complete Singapore Guide | Homejourney ">Property Investment Financing Guide. Your safe investment journey begins here.

References

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