ABSD & LTV Limits (2018) SIngapore

Additional Buyer's Stamp Duty (ABSD) and
Loan-To-Value (LTV) Limits (2018)

With effect from 6th July 2018:
Adjustments to ABSD Rates for Residential Property &
Revised LTV Limits on Housing Loans Granted by Financial Institutions

How does it affect you?

The adjustments to ABSD rates will affect:
1) SC/SPR buyers who intend to purchase their 2nd & subsequent residential property

2) Foreign buyers who intend to purchase any residential property in Singapore

The revised LTV Limits will affect:
3) All buyers as they now have a lower LTV limit for their loans from financial instituitions to finance their property purchase.

ABSD

Note:

ABSD is an additional stamp duty on top of the prevailing Buyer’s Stamp Duty for residential properties.
Below are the prevailing rates of Buyer’s Stamp Duty from 20 February 2018:

Example

With the revised rates, here’s how much more buyers would be paying (i.e. BSD + ABSD)
(Before and after the new cooling measures)

1) Singapore Citizens (SCs) buying a second residential property at $2 million.

This translates to an increase of $100,000 in stamp duties payable if you were to purchase a unit priced at $2million.

2) Singapore Permanent Residents (PRs) buying a second residential property at $1.4 million.

This translates to an increase of $70,000 in stamp duties payable for a $1.4 million property.

3) Foreigners buying any residential properties at $4 million.

This translates to an increase of $200,000 in stamp duties payable if a foreign investors were to purchase a $4million property.

Loan-To-Value (w.e.f. 6th July 2018)

All housing loans granted by financial institutions will henceforth have a 5% lower LTV limit. HDB loans are not affected by this revision. The new LTV rates are presented in the table below.

All buyers including those who take a loan to finance their 1st residential private property will be affected.