Question 1

What is Buyer's Stamp Duty (BSD), and how is it calculated?

Accepted Answer

Buyer's Stamp Duty is a tax every buyer pays on the purchase price or market value of a property, whichever is higher. It applies to everyone — citizens, PRs and foreigners alike. For residential property it is tiered: 1% on the first $180,000, 2% on the next $180,000, 3% on the next $640,000, 4% on the next $500,000, 5% on the next $1,500,000, and 6% on any amount above $3,000,000. As a rough guide, BSD on a $1,000,000 home is about $24,600. BSD is payable in cash or CPF within 14 days of signing.

Question 2

What is ABSD, and who has to pay it?

Accepted Answer

Additional Buyer's Stamp Duty is an extra tax on top of BSD, charged on the property price and driven by your residency and how many residential properties you already own. A Singapore citizen pays no ABSD on a first home, 20% on a second, and 30% on a third or subsequent property. A Permanent Resident pays 5% on a first property, 30% on a second, and 35% thereafter. Foreigners pay a flat 60% on any residential purchase — though nationals of countries with a relevant free trade agreement (the United States, Iceland, Liechtenstein, Norway and Switzerland) are charged at citizen rates.

Question 3

I already own a home — how much ABSD will I pay on a second property?

Accepted Answer

For a Singapore citizen, a second residential property attracts ABSD of 20% of the price. On a $1,500,000 property that is $300,000, payable upfront in cash or CPF — usually the single largest cost of a second purchase. A Permanent Resident pays 30% on a second property. ABSD counts the properties you own at the time of purchase, so timing matters: if you are upgrading and will sell your current home, see the question on selling first versus buying first.

Question 4

What is TDSR, and how does it limit my loan?

Accepted Answer

The Total Debt Servicing Ratio caps your total monthly debt repayments at 55% of your gross monthly income. "Total debt" means everything — the new home loan plus car loans, credit card minimums, personal loans and any other property loans. Lenders also apply a haircut to variable income such as bonuses and commissions, typically recognising about 70% of it. TDSR is usually the first ceiling on how large a loan you can take: the more existing debt you carry, the smaller the home loan that fits under the 55% limit.

Question 5

What is MSR, and how is it different from TDSR?

Accepted Answer

The Mortgage Servicing Ratio caps your monthly home loan repayment at 30% of gross monthly income, and it applies only to HDB flats and Executive Condominiums. Unlike TDSR, MSR looks at the property loan alone, not your other debts. When you buy an HDB flat or EC, both limits apply at once and the lower of the two sets your borrowing ceiling — so MSR often binds first for buyers with little other debt, while TDSR binds first for those carrying car or personal loans. Private condos and landed property are subject to TDSR only.

Question 6

How much can I borrow — what is the loan-to-value (LTV) limit?

Accepted Answer

LTV is the share of the property price a bank will lend. For a buyer with no other home loan, the limit is 75% from a bank, leaving 25% as downpayment — of which at least 5% must be in cash and the rest can be CPF. The limit drops sharply for further properties: a second housing loan is capped at 45%, and a third at 35%, with much larger minimum cash portions. The lower LTV bands also apply if the loan tenure runs past 30 years or extends beyond the borrower's 65th birthday. Your actual loan is the lower of the LTV ceiling and what your income supports under TDSR or MSR.

Question 7

How much cash do I actually need upfront to buy a property?

Accepted Answer

The cash and CPF you need on completion is more than the downpayment. It is the downpayment (price minus loan), plus Buyer's Stamp Duty, plus any ABSD, plus legal and valuation fees. For a citizen buying a $1,500,000 first condo with a 75% loan, that is roughly $375,000 downpayment, about $44,600 BSD, no ABSD, and a few thousand in fees — well over $400,000, of which at least 5% of the price must be physical cash. Buyers often plan for the downpayment alone and are caught out by the duties.

Question 8

What is Seller's Stamp Duty (SSD), and when do I pay it?

Accepted Answer

Seller's Stamp Duty is a tax on selling a residential property within a holding period after buying it — designed to discourage short-term flipping. For a property bought on or after 4 July 2025 the holding period is four years, with rates of 16% if sold within the first year, 12% in the second, 8% in the third and 4% in the fourth; sell after four years and no SSD is due. Properties bought before that date follow the earlier three-year regime at 12%, 8% and 4%. SSD is based on the sale price or market value, whichever is higher.

Question 9

When I sell, how much money will I actually walk away with?

Accepted Answer

Far less than the sale price. From the sale proceeds you must first redeem the outstanding loan, then refund to your CPF Ordinary Account every dollar of CPF you used — plus the accrued interest that money would have earned, which is the figure sellers most often forget. After that come Seller's Stamp Duty if you are still within the holding period, any resale levy on an HDB flat, agent commission and legal fees. The cash you keep is what remains. A healthy headline price can leave thin proceeds once the CPF refund and loan redemption are taken out.

Question 10

What is rental yield, and what counts as a good yield in Singapore?

Accepted Answer

Rental yield expresses annual rent as a percentage of the property's value. Gross yield is simply annual rent divided by price; net yield subtracts holding costs — MCST or maintenance, property tax, insurance, agent fees and a vacancy allowance — before dividing. Net yield is the figure that matters. Singapore residential yields are typically modest: gross yields commonly fall in the 3% to 4% range and net yields lower still. A separate question is cashflow: even a property with a reasonable yield can require a monthly top-up once the loan instalment is included.

Question 11

As an upgrader, should I sell my current home first or buy first?

Accepted Answer

It changes the cash you need. If you buy before selling, you briefly own two properties, so ABSD applies to the new purchase in full and is paid upfront — you then claim it back as a remission if you sell the original home within the qualifying window, which for a married couple's matrimonial home is commonly six months for a completed property. If you sell first, you own only one property at the point of purchase and avoid ABSD altogether, but you may face a gap between homes or need a bridging loan. Selling first is cleaner on cost; buying first is easier on logistics.

Question 12

Does ABSD apply to commercial or industrial property?

Accepted Answer

No. Additional Buyer's Stamp Duty applies to residential property only — no ABSD is payable on an office, shop, factory, warehouse or other non-residential purchase, whatever your citizenship and however many properties you already own. That is one reason investors priced out by residential ABSD look at commercial property. The one trap is mixed-use: on a shophouse with living quarters upstairs, the residential portion is assessed as residential and can attract ABSD, while the shop below does not. Non-residential buyers pay BSD on a slightly different scale (capped at 5% rather than 6%) and, usually, GST.

Question 13

Is there Seller's Stamp Duty on commercial or industrial property?

Accepted Answer

Commercial property has no SSD at all — an office, shop or commercial shophouse can be sold the day after you buy it with no seller's stamp duty. Industrial property is different: it has its own regime, separate from the residential one. For industrial property acquired on or after 12 January 2013, selling within a year costs 15%, within the second year 10%, and within the third year 5%; after three years, nothing. Industrial property acquired before that date carries no SSD. Neither schedule tracks the residential rules — the 4 July 2025 residential change did not touch industrial rates.

Question 14

Do I pay GST when buying or renting a commercial property?

Accepted Answer

Usually, yes — and it is often the largest single upfront line. The sale or lease of non-residential property by a GST-registered seller or landlord attracts GST at 9%. On a $2,000,000 commercial purchase that is $180,000 — more than double the $69,600 stamp duty. If your business is GST-registered you can generally claim it back as input tax, making it a cashflow item rather than a permanent cost; if not, it is a real cost to budget. A seller who is not GST-registered charges no GST. Residential property is exempt either way.

Question 15

Are these figures official, or financial advice?

Accepted Answer

No. Everything here and in the calculators is an estimate for planning and comparison only — not financial, legal, tax or regulatory advice. Stamp duty rates, loan limits and CPF rules are revised by the authorities from time to time, and your actual position depends on details a calculator cannot see. Always verify figures with the bank, CPF Board, IRAS, HDB, a conveyancing lawyer or a qualified property professional before committing.

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