Additional Buyer's Stamp Duty (ABSD) in Singapore: 5 Mistakes to Avoid
Calculates ABSD by buyer profile and the number of residential properties owned, using the rates in force since 27 April 2023. The maths is not complicated, but a handful of errors come up again and again in this and related property & hdb calculations. Here is what to watch for.
Most Singaporeans live in HDB flats, which can be financed with an HDB concessionary loan at 0.1% above the CPF Ordinary Account rate or with a bank loan. Private property must be financed with a bank loan, and banks offer fixed, floating and SORA-pegged packages.
CPF Ordinary Account savings can pay for the downpayment, stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.
1. Using the advertised interest rate for affordability
Banks apply a stress-test rate to TDSR and MSR calculations.
2. Overlooking other costs
Legal fees, valuation, fire insurance, renovation and agent fees all add to the total outlay.
3. Forgetting the cash portion
Part of the downpayment must be in cash, and CPF cannot be used for it.
4. Forgetting ABSD on a second property
Citizens pay 20% ABSD on a second residential property, which can be hundreds of thousands of dollars.
5. Assuming the bank will lend 75%
LTV falls to 45% for a second loan and is reduced further for long tenures or older borrowers.
The correct method
Citizens: 0% / 20% / 30%. PRs: 5% / 30% / 35%. Foreigners: 60%. Entities: 65%.
For example, with these inputs:
- Purchase price or market value, whichever is higher (S$): 1,200,000
- Buyer profile: Singapore Citizen
- Which residential property is this?: First
the calculator returns:
- ABSD rate: 0.00%
- ABSD payable: S$0.00
Related calculations
- Rental Yield Calculator: Measures the return from rent before and after costs such as property tax, maintenance fees and agent fees.
- Home Loan Refinancing Calculator: Compares your current mortgage with a new rate to show the monthly saving and how long switching costs take to recover.
- Property Downpayment Calculator: Splits the downpayment into cash and CPF and shows the remaining loan.
- Buyer's Stamp Duty (BSD) Calculator: Calculates Buyer's Stamp Duty on a Singapore residential property using the tiered rates from 1% to 6%.
The Additional Buyer's Stamp Duty (ABSD) Calculator applies the formula consistently, so it is a quick way to double-check your own working.
Run your own numbers: Additional Buyer's Stamp Duty (ABSD) Calculator