The money rules of buying property
Before the emotion of a viewing, the maths decides what you can buy and what it really costs. This is every cost and rule for Singapore private residential property — stamp duties, loan limits, tax and CPF — each with a calculator you can run. Rates are summarised from IRAS, MAS and CPF and verified as at 12 Jul 2026; policy changes, so confirm the current figure before you commit.
Stamp duty when you buy
Every buyer pays Buyer’s Stamp Duty (BSD). On top of it, Additional Buyer’s Stamp Duty (ABSD) applies based on your residency and how many residential properties you already own — it is the single biggest swing in your entry cost.
Buyer’s Stamp Duty (BSD) — residential, from 15 Feb 2023
| Portion of price / value | Marginal rate |
|---|---|
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Next $1,500,000 | 5% |
| Amount above $3,000,000 | 6% |
Additional Buyer’s Stamp Duty (ABSD) — from 27 Apr 2023
| Buyer profile | 1st property | 2nd | 3rd & beyond |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Permanent Resident | 5% | 30% | 35% |
| Foreigner | 60% on any residential purchase | ||
| Entity / Trust | 65% | ||
Stamp duty calculator
How is this worked out? — formula, tiers & sources
Seller’s Stamp Duty (SSD) when you sell
Sell a residential property within four years of buying it and you pay SSD on the way out. The clock and rates were both increased for purchases made on or after 4 July 2025 — the holding period went from 3 to 4 years and each tier rose 4 percentage points.
| Sold within… | SSD rate |
|---|---|
| 1 year of purchase | 16% |
| >1 to 2 years | 12% |
| >2 to 3 years | 8% |
| >3 to 4 years | 4% |
| More than 4 years | 0% |
SSD calculator
How is this worked out? — formula, tiers & sources
How much you can borrow — TDSR, MSR & LTV
Two limits cap your loan. TDSR caps all your monthly debt at 55% of gross income; MSR (HDB flats and ECs only) caps the housing loan at 30%. Both are stress-tested at a 4% medium-term rate, not today’s promo rate. Separately, LTV caps the loan as a share of the property price.
Loan-to-Value (LTV) — bank loan, private property
| Which housing loan | Max LTV | Min cash |
|---|---|---|
| 1st loan | 75% | 5% |
| 2nd loan | 45% | 25% |
| 3rd or subsequent | 35% | 25% |
Maximum-loan calculator
How is this worked out? — formula, tiers & sources
Property tax — the annual holding cost
Property tax is charged yearly on the Annual Value (AV) — IRAS’s estimate of your property’s yearly rent, excluding furniture and maintenance. If you rent it out (non-owner-occupier), the rates are markedly higher — a real drag on net yield.
Non-owner-occupier (rented out) rates
| Portion of Annual Value | Rate |
|---|---|
| First $30,000 | 12% |
| Next $15,000 | 20% |
| Next $15,000 | 28% |
| Above $60,000 | 36% |
Property-tax estimator
How is this worked out? — formula, tiers & sources
Using CPF for your purchase
You can use your CPF Ordinary Account (OA) for the down-payment (beyond the minimum cash portion) and the monthly instalments — but there are ceilings, and CPF used is not free money: it must be refunded with accrued interest when you sell.
| Rule | What it means |
|---|---|
| Minimum cash | The first 5% (1st loan) / 25% (2nd+) of price must be paid in cash; CPF can cover the rest of the down-payment. |
| Valuation Limit (VL) | CPF OA usage is capped at the lower of price or valuation. Beyond it you may keep using CPF up to the Withdrawal Limit only if you’ve set aside the Basic Retirement Sum. |
| Withdrawal Limit (WL) | Absolute cap on CPF used = 120% of the Valuation Limit for private property. |
| Accrued interest | On sale you must return the CPF used plus the interest it would have earned (2.5% p.a., compounded) to your CPF — it reduces your cash proceeds. |
| Lease cover | Full CPF use requires the remaining lease to cover the youngest buyer to age 95; short leases restrict CPF. |
Advanced: legally sidestepping the 20% ABSD
For a couple who want a second property, the 20% ABSD on a citizen’s second home is often the deciding number. Two legitimate structures reduce or avoid it. Both carry real costs and risks — take legal and tax advice; these calculators show only the headline ABSD arithmetic.
1. Decoupling
One spouse buys out the other’s share of the existing home, so that spouse owns it 100% and the other owns nothing — freeing them to buy the next property as a ‘first’ home at 0% ABSD. The cost is BSD on the transferred share (and legal/valuation fees).
Decoupling calculator
How is this worked out? — formula, tiers & sources
2. Sell one, buy two
Sell the jointly-owned home, split the proceeds, and each spouse separately buys a property in their sole name — each a ‘first’ property at 0% ABSD. Versus keeping the home and buying a second (20% ABSD), the headline saving is large; weigh it against selling costs, SSD (if within the holding period) and two smaller budgets.