Buyer's Stamp Duty (BSD) in Singapore: 5 Mistakes to Avoid
Calculates Buyer's Stamp Duty on a Singapore residential property using the tiered rates from 1% to 6%. 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.
Stamp duties are paid upfront. Buyer's Stamp Duty applies to every purchase at tiered rates up to 6%, while ABSD depends on the buyer's residency status and how many residential properties they already own. Sellers who dispose of a property within the holding period pay Seller's Stamp Duty.
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.
1. Assuming the bank will lend 75%
LTV falls to 45% for a second loan and is reduced further for long tenures or older borrowers.
2. Forgetting ABSD on a second property
Citizens pay 20% ABSD on a second residential property, which can be hundreds of thousands of dollars.
3. Using the price instead of the higher valuation
Stamp duty is charged on the higher of price or market value.
4. Overlooking other costs
Legal fees, valuation, fire insurance, renovation and agent fees all add to the total outlay.
5. Using the advertised interest rate for affordability
Banks apply a stress-test rate to TDSR and MSR calculations.
The correct method
1% on the first S$180,000, 2% on the next S$180,000, 3% on the next S$640,000, 4% on the next S$500,000, 5% on the next S$1.5 million and 6% above S$3 million.
For example, with these inputs:
- Purchase price or market value, whichever is higher (S$): 1,200,000
the calculator returns:
- Buyer's Stamp Duty: S$32,600.00
- BSD as % of price: 2.72%
Related calculations
- Loan-to-Value (LTV) Calculator: Shows the maximum bank loan and the minimum downpayment under MAS loan-to-value limits for loans up to 30 years (25 years for HDB flats).
- Property Affordability Calculator: Estimates the biggest loan and property price your income supports under TDSR, using the stress-test rate banks apply.
- 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.
The Buyer's Stamp Duty (BSD) Calculator applies the formula consistently, so it is a quick way to double-check your own working.
Run your own numbers: Buyer's Stamp Duty (BSD) Calculator