Investing in Singapore
Everything you ever need to know about Investing in Singapore.
FAQ
FREQUENTLY ASKED QUESTIONS ABOUT INVESTING IN SINGAPORE
The Total Debt Servicing Ratio (TDSR) is a framework to ensure that people borrow, and banks lend, responsibly. In a nutshell, the TDSR limits the amount borrowers can spend on debt repayments to 60 per cent of their gross monthly income
Buyer’s Stamp Duty (BSD) in Singapore
BSD rates are calculated based on the value of the property, as follows:
| Purchase Price or Market Value of the Property | BSD Rates for residential properties | BSD Rates for non-residential properties |
| First $180,000 | 1% | 1% |
| Next $180,000 | 2% | 2% |
| Next $640,000 | 3% | 3% |
| Remaining Amount | 4% | 3% |
| If you are… | ABSD rate |
| Singapore citizen buying your first residential property | 0% |
| Singapore citizen buying a second residential property | 12% |
| Singapore citizen buying a third and subsequent residential property | 15% |
| PR buying a first residential property | 5% |
| PR buying a second and subsequent residential property | 15% |
| Foreigner buying any residential property | 20% |
MSR Rules
Mortgage servicing ratio (MSR) refers to the portion of a borrower’s gross monthly income that goes towards repaying all property loans, including the loan being applied for.
MSR is capped at 30% of a borrower's gross monthly income.
It applies only to housing loans for the purchase of an HDB flat or an executive condominium bought directly from a developer.
Calculating MSR
When calculating MSR, FIs are to take into consideration:
- All the borrower’s property loans.
- At least 20% of the monthly debt obligation for any property loan where the borrower is a guarantor.
To calculate a borrower’s MSR, use the following formula:
(Monthly repayment instalments for all property loans / Gross monthly Income) x 100% ≤ 30%
TDSR Rules
Total debt servicing ratio (TDSR) refers to the portion of a borrower’s gross monthly income that goes towards repaying the monthly debt obligations, including the loan being applied for.
A borrower's TDSR should be less than or equal to 60%.
Decoupling happens when one partner's share in a property is transferred to the other person. This creates a sole owner, leaving the other half of the pair free to buy another home without having to pay the ABSD, as that purchase will be seen as his or her first. The savings can be substantial.