by Kenny Lee Historical policy and news archive · Source publication: 2021-12-15 · Implementation: 16 December 2021, subject to the specified application rules. Prepared retrospectively on 3 October 2026; the archive date follows the cited source. Historical rules must be matched to the relevant transaction date.
The announcement
Singapore citizens buying a second home faced 17% ABSD; third and subsequent homes faced 25%. Permanent residents faced 25% for a second and 30% for subsequent homes. Foreigners faced 30%. First-home citizen and PR rates remained 0% and 5%. TDSR tightened from 60% to 55%, and the HDB loan LTV ceiling fell from 90% to 85%. The release included transitional arrangements for qualifying earlier options.
What this means for property planning
The financing threshold is a ceiling rather than a household spending target. The move from 60% to 55% reduced the permitted debt-service share by five percentage points. At an assumed S$10,000 monthly income, that is S$500 less monthly debt-service capacity before applying the lender’s detailed assessment.
A household carrying a car loan or other debts should revisit its mortgage approval before choosing a unit. For buyers retaining a residential property, calculate ABSD separately from mortgage affordability: being eligible for a loan does not eliminate purchase tax. These rates were revised again in 2023, while HDB LTV limits were tightened in subsequent rounds.
Before acting
Establish your household profile, property ownership, financing and transaction dates. Obtain a written eligibility or financing assessment where needed. A historical announcement cannot establish your present eligibility, tax liability or borrowing limit.
Source: Original official release or dated news report. Reviewed 3 October 2026.