2018 Cooling Measures: How More Much Stamp Duty And Down Payment Will You Have To Fork Out?

2018 Cooling Measures: How More Much Stamp Duty And Down Payment Will You Have To Fork Out?

Soaring home prices have once again prompted the government to introduce certain cooling measures to the property market. If you were planning to purchase a property with a bank home loan, these measures can mean forking out considerably more in stamp duties, especially if it isn’t your first property purchase.

Here are the measures that have been imposed:

Measure 1: Higher Additional Buyer Stamp Duty (ABSD) rates

Liable buyers will now have to pay an additional 5% in ABSD.

The ABSD is an additional stamp duty that liable buyers will have to pay, on top of the existing Buyer’s Stamp Duty (BSD). Whether or not and how much ABSD you’ll have to pay depends on your residency status and how many residential properties you already own.

Measure 2: Lower Loan-to-value (LTV) limit

LTV limits have been reduced by 5% for all housing loans granted by financial institutions. This means that if you’re taking out a bank loan to buy a private or HDB property, your LTV will be reduced – however, HDB loans are not affected by this cooling measure.

The LTV refers to the amount of loan you can take out in relation to the property value. For example, a LTV of 75% means that you can borrow S$750,000 to purchase a property with a value of S$1,000,000. The remaining S$250,000 will be your down payment.

Here’s a summary of how these cooling measures will affect property buyers:

Citizenship
ABSD on first residential property
ABSD on second residential property
ABSD on third or subsequent residential property
Singapore citizens
0% (Old: 0%)
12% (Old: 7%)
15% (Old: 10%)
Singapore permanent residents
5% (Old: 5%)
15% (Old: 10%)
15% (Old: 10%)
Foreigners
20% (Old: 15%)
20% (Old: 15%)
20% (Old: 15%)
Entities
25% (Old: 15%)
25% (Old: 15%)
25% (Old: 15%)

Individual borrowers
First loan
Second loan
Third or subsequent loan
Loan-to-value limits (for bank loans)
New:

75%; or 55% if the loan tenure is more than 30 years* or extends past age 65

Old:

80%; or 60% if the loan tenure is more than 30 years* or extends past age 65
New:

45%; or 25% if the loan tenure is more than 30 years* or extends past age 65

Old:

50%; or 30% if the loan tenure is more than 30 years* or extends past age 65
New:

35%; or 15% if the loan tenure is more than 30 years* or extends past age 65

Old:

40%; or 20% if the loan tenure is more than 30 years* or extends past age 65
Minimum cash down payment
5%; or 10% if the loan tenure is more than 30 years* or extends past age 65 (no change)
25%
(no change)
25%
(no change)

Entity borrowers
First loan
Second loan
Third or subsequent loan
Loan-to-value limits
15% (Old: 20%)

*25 years, where the property purchased is a HDB flat
Source: MOF

How will these measures affect you?

Here’s how much more stamp duty and down payment (CPF and cash) you may have to fork out to buy a property in Singapore, if you’re taking out a bank loan with a loan tenure of 30 years or less:

Scenario 1: Buying your first residential property

Stamp duty (BSD and ABSD) and down payment (CPF and cash) payable
Property price
Singapore
citizens
Singapore
permanent residents
Foreigners
S$800,000
S$218,600

(Old: S$178,600)
S$258,600

(Old: S$218,600)
S$378,600

(Old: S$298,600)
S$1,000,000
S$274,600

(Old: S$224,600)
S$324,600

(Old: S$274,600)
S$474,600

(Old: S$374,600)
S$1,500,000
S$419,600

(Old: S$344,600)
S$494,600

(Old: S$419,600)
S$719,600

(Old: S$569,600)
S$3,000,000
S$854,600

(Old: S$704,600)
S$1,004,600

(Old: S$854,600)
S$1,454,600

(Old: S$1,154,600)

Scenario 2: Buying your second residential property

Stamp duty (BSD and ABSD) and down payment (CPF and cash) payable
Property price
Singapore
citizens
Singapore
permanent residents
Foreigners
S$800,000
S$554,600

(Old: S$474,600)
S$578,600

(Old: S$498,600)
S$618,600

(Old: S$538,600)
S$1,000,000
S$694,600

(Old: S$594,600)
S$724,600

(Old: S$624,600)
S$774,600

(Old: S$674,600)
S$1,500,000
S$1,049,600

(Old: S$899,600)
S$1,094,600

(Old: S$944,600)
S$1,169,600

(Old: S$1,019,600)
S$3,000,000
S$2,114,600

(Old: S$1,814,600)
S$2,204,600

(Old: S$1,904,600)
S$2,354,600

(Old: S$2,054,600)

Scenario 3: Buying your third or subsequent residential property

Stamp duty (BSD and ABSD) and down payment (CPF and cash) payable
Property price
Singapore
citizens
Singapore
permanent residents
Foreigners
S$800,000
S$658,600

(Old: S$578,600)
S$658,600

(Old: S$578,600)
S$698,600

(Old: S$618,600)
S$1,000,000
S$824,600

(Old: S$724,600)
S$824,600

(Old: S$724,600)
S$874,600

(Old: S$774,600)
S$1,500,000
S$1,244,600

(Old: S$1,094,600)
S$1,244,600

(Old: S$1,094,600)
S$1,319,600

(Old: S$1,169,600)
S$3,000,000
S$2,504,600

(Old: S$2,204,600)
S$2,504,600

(Old: S$2,204,600)
S$2,654,600

(Old: S$2,354,600)

Unfortunately, you’ll now have to fork out considerably more if you’re planning on taking out a bank home loan. Keep in mind that the estimations above are assume that any previous mortgage has been fully paid; if you take out an additional home loan while you’re still servicing your previous mortgage(s), your LTV limit will be even lower.

On the other hand, if you’re a Singapore citizen or permanent resident buying a property for the first time, you can rest easy for now. You won’t be liable to pay any ABSD, although you’ll need to increase your down payment by 5% if you’re taking out a bank loan.

Looking for home loan advice? Get in touch with our team of experts today.
(Visited 352 times, 5 visits today)

Leave your comment

Comments