Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
Overview: Singapore’s Cooling Measure Framework
Singapore’s government has used property market cooling measures since the 1990s to prevent speculative excess and ensure housing remains accessible to residents. The current framework consists of four main tools:
- Additional Buyer’s Stamp Duty (ABSD): Differential stamp duty on property purchases based on the buyer’s citizenship, residency status, and number of existing properties. ABSD is the primary demand-side cooling tool and targets investors, second and subsequent property purchases, and foreign buyers.
- Loan-to-Value (LTV) limits: Caps on the maximum mortgage a buyer can obtain as a proportion of the property value. LTV limits are lower for subsequent housing loans, discouraging leveraged investment in multiple properties.
- Total Debt Servicing Ratio (TDSR): A borrower’s total monthly debt obligations (including the new mortgage) must not exceed 55% of gross monthly income. TDSR applies to all property loans and prevents over-leveraged purchases.
- Seller’s Stamp Duty (SSD): Payable by sellers who dispose of residential property within 3 years of purchase. SSD discourages short-term speculation by imposing a holding cost on quick resales.
Additional Buyer’s Stamp Duty (ABSD) — Current Rates
ABSD was introduced in 2011 and has been revised multiple times. As of 2026, the key ABSD rates for residential property are:
- Singapore Citizens: 0% on first property; 20% on second property; 30% on third and subsequent properties.
- Permanent Residents: 5% on first property; 30% on second and subsequent properties.
- Foreigners: 60% on any residential property purchase.
- Entities (companies, trusts): 65% on any residential property purchase, plus 35% additional for housing developers (ABSD for developers is partially remissible on completion of development within the prescribed timeframe).
ABSD is calculated on the higher of the purchase price or the market value. It is payable within 14 days of the date of the instrument of transfer or exercise of the option.
Loan-to-Value (LTV) Limits — Current Framework
LTV limits govern the maximum loan a financial institution can extend for a property purchase, expressed as a percentage of the property value:
- First housing loan (bank): 75% LTV. Buyer must fund the remaining 25% from cash and/or CPF, with a minimum 5% in cash.
- Second housing loan (bank): 45% LTV. Buyer must fund the remaining 55% from cash and/or CPF, with a minimum 25% in cash.
- Third and subsequent housing loans (bank): 35% LTV. Buyer must fund the remaining 65% from cash and/or CPF, with a minimum 25% in cash.
- HDB concessionary loan: 80% LTV for first-time HDB flat buyers who have not previously owned a property or taken an HDB loan; 80% for eligible buyers purchasing HDB resale flats.
“Housing loan” includes mortgages on all types of residential property in Singapore and overseas. A buyer with an outstanding mortgage on an overseas property counts as having one existing housing loan for LTV purposes.
Total Debt Servicing Ratio (TDSR)
TDSR requires that a borrower’s total monthly debt obligations (all loans, including the new mortgage being applied for) do not exceed 55% of their gross monthly income. Key TDSR mechanics:
- All recurring debt obligations are included: credit card balances (2% of outstanding balance per month), car loans, personal loans, student loans, and the new housing loan.
- Variable or rental income is subject to a haircut (typically 30%) before being included in the income calculation.
- Joint borrowers have their combined income and debt assessed for TDSR.
- TDSR applies to all property loans from financial institutions in Singapore — HDB concessionary loans are subject to the Mortgage Servicing Ratio (MSR) framework (30% of gross monthly income for HDB loans and EC loans), not the 55% TDSR.
Seller’s Stamp Duty (SSD)
SSD applies to residential property disposed of within the holding period below. Two regimes apply depending on purchase date.
Regime A — Properties purchased before 4 July 2025 (3-year holding period):
- Sold within Year 1: 12% of the higher of selling price or market value.
- Sold within Year 2: 8%.
- Sold within Year 3: 4%.
- Sold after Year 3: No SSD.
Regime B — Properties purchased from 4 July 2025 (4-year holding period):
- Sold within Year 1: 16% of the higher of selling price or market value.
- Sold within Year 2: 12%.
- Sold within Year 3: 8%.
- Sold within Year 4: 4%.
- Sold after Year 4: No SSD.
SSD applies to both private residential property and HDB flats. For HDB flats, the MOP (typically 5 years) effectively prevents resale within the first 5 years, making SSD less immediately relevant — but agents should still check the purchase date when advising on any early resale.
Frequently Asked Questions
Q: Do cooling measures apply to commercial or industrial property purchases?
A: ABSD and SSD apply to residential property only. Commercial properties (offices, retail, F&B), industrial properties, and mixed-use units where the residential component is not separately titled are not subject to ABSD or residential SSD. Different stamp duty regimes apply to these property types. LTV limits for investment properties vary — commercial property loans are not subject to the residential LTV framework, though lenders apply their own LTV criteria.
Q: Are cooling measures the same for inherited property?
A: Property acquired through inheritance is generally not subject to ABSD at the time of inheritance. However, the inherited property counts toward the inheritor's property count for ABSD purposes on future purchases. An SC who inherits a first property and then purchases a second property will pay 20% ABSD on the purchase. The inherited property is treated the same as a purchased property for ABSD counting purposes from the date of transmission.
Q: Can cooling measures be negotiated or reduced for specific buyers?
A: No. ABSD, BSD, and SSD are statutory taxes administered by IRAS. They are not negotiable and cannot be reduced by agreement between the buyer and seller. Agents should not represent to clients that stamp duty obligations can be avoided or reduced through structuring the transaction (e.g., splitting ownership to reduce ABSD) — IRAS has actively pursued cases of ABSD avoidance arrangements, including the well-known 99-to-1 arrangements. Buyers seeking legitimate remissions must satisfy the prescribed eligibility conditions.
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.