# Raising Additional Buyer’s Stamp Duty Rates and Tightening Loan-to-Value Limits to Promote a Stable and Sustainable Property Market - **Source:** Ministry of National Development - **Published:** 2018-07-05T11:00:00.000Z - **Author:** Ministry of National Development - **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/raising-additional-buyer-s-stamp-duty-rates-and-tightening-loan-to-value-limits-to-promote-a-sable-and-sustainable-property-market - **Topics:** Private Residential, Government & Policy, Transactions & Deals ## Featured rationale Higher acquisition costs and larger equity requirements may temper investment demand and transaction volumes, potentially keeping price growth closer to economic fundamentals. ## AI summary Following a 9.1% annual private-home price increase, the Government raised most ABSD rates and tightened financial-institution housing-loan LTV limits by 5 percentage points. ## Original article The Government announced today adjustments to the Additional Buyer’s Stamp Duty (ABSD) rates and Loan-to-Value (LTV) limits on residential property purchases, to cool the property market and keep price increases in line with economic fundamentals. Status of the Private Housing Market After declining gradually for close to 4 years, private residential prices began rising in 3Q2017. Prices have increased sharply by 9.1% over the past year. Demand for private residential property has also seen a strong recovery, as transaction volumes continue to rise. The sharp increase in prices, if left unchecked, could run ahead of economic fundamentals and raise the risk of a destabilising correction later, especially with rising interest rates and the strong pipeline of housing supply. The Government has therefore decided to raise ABSD rates and tighten LTV limits for residential property purchases. Raising ABSD Rates The current ABSD rates for Singapore Citizens (SC) and Singapore Permanent Residents (SPR) purchasing their first residential property will be retained at 0% and 5% respectively. The Government will make the following changes to ABSD rates: a. Raise ABSD by 5%-points for all other individuals; and b. Raise ABSD by 10%-points for entities; and c. Introduce an additional ABSD of 5% that is non-remittable under the Remission Rules1 (payable on the purchase price or market value, as applicable) for developers purchasing residential properties for housing development. Table 1 summarises the adjustments to the ABSD rates. Table 1: Adjustments to ABSD Rates for Residential Property # As entities, developers will also be subject to the ABSD rate of 25% for entities. Developers may apply for remission of this 25% ABSD, subject to conditions (including completing and selling all units within the prescribed periods of 3 years or 5 years for non-licensed and licensed developers respectively). Details are provided under the Stamp Duties (Non-licensed Housing Developers) (Remission of ABSD) Rules and the Stamp Duties (Housing Developers) (Remission of ABSD) Rules. ^ Developers refer to entities which engage in the business of construction and sale of housing units. * This new 5% ABSD for developers is in addition to the 25% ABSD for all entities. This 5% ABSD will not be remitted, and is to be paid upfront upon purchase of residential property. For purchases made jointly by two or more parties of different profiles, the highest applicable ABSD rate will apply. However, full ABSD remission will continue to be provided for joint purchases of the first residential property by married couples with at least one SC spouse. Married couples with at least one SC spouse, who jointly purchase a second residential property, can continue to apply for a refund of ABSD, as long as they sell their first residential property within 6 months after (a) the date of purchase of the second residential property, or (b) the issue date of the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) of the second residential property, whichever is earlier (if the property was uncompleted at the time of purchase). There will be a transitional provision for cases where an Option to Purchase (OTP) has been granted by sellers to potential buyers on or before 5 July 2018, and this OTP has not been varied on or after 6 July 2018. For such cases, the current ABSD rates, instead of the revised ABSD rates, will apply if the OTP is exercised within 3 weeks of this announcement (i.e. exercised on or before 26 July 2018) or the OTP validity period, whichever is earlier. Tightening of LTV Limits LTV limits will be tightened by 5%-points for all housing loans granted by financial institutions. These revised LTV limits do not apply to loans granted by HDB. Table 2 summarises the adjustments to the LTV limits: Table 2: Revised LTV Limits on Housing Loans Granted by Financial Institutions * 25 years, where the property purchased is a HDB flat. The tightened LTV limits will apply to loans for the purchase of residential properties where the OTP is granted on or after 6 July 2018. In line with the tightening of LTV limits for housing loans, LTV limits for mortgage equity withdrawal loans (MWLs) will be tightened as follows: a. 75% for a borrower with no outstanding housing loan for the purchase of another residential property; and b. 45% for a borrower with an outstanding housing loan for the purchase of another residential property. The tightened LTV limits will apply to MWL applications made on or after 6 July 20182. The Government will continue to monitor the property market and adjust our policies as necessary, to maintain a stable and sustainable property market. 1 Stamp Duties (Non-licensed Housing Developers) (Remission of ABSD) Rules and Stamp Duties (Housing Developers) (Remission of ABSD) Rules 2 For refinancing of existing MWLs, the current LTV limits of 80%, or 60% (for borrowers with an outstanding housing loan for the purchase of another residential property), will continue to apply. Existing MWLs refer to those which were applied before 6 July 2018. ## Chinese translation > Translation model: grok_cli ### 上调额外买方印花税税率并收紧贷款与估值比率上限，以促进稳定且可持续的房地产市场 政府今日宣布调整住宅物业购买的额外买方印花税（ABSD）税率及贷款与估值比率（LTV）上限，以冷却房地产市场，并使价格升幅与经济基本面保持一致。 私人住房市场现况 私人住宅价格在经历近4年的逐步下跌后，于2017年第三季度开始回升。过去一年价格大幅上涨9.1%。私人住宅物业需求也明显复苏，交易量持续上升。 若放任价格急剧上涨而不加以遏制，可能超前于经济基本面，并增加日后出现破坏性调整的风险，尤其是在利率上升且住房供应充足的情况下。 因此，政府决定上调额外买方印花税税率，并收紧住宅物业购买的贷款与估值比率上限。 上调额外买方印花税税率 新加坡公民（SC）及新加坡永久居民（SPR）购买首套住宅物业的现行额外买方印花税税率将分别维持在0%及5%。 政府将对额外买方印花税税率作出以下调整： a. 对所有其他个人上调额外买方印花税5个百分点；以及 b. 对实体上调额外买方印花税10个百分点；以及 c. 引入额外5%的额外买方印花税，该税款根据减免规则1不可获减免（按购买价格或市值（视情况适用）支付），适用于为住房开发而购买住宅物业的发展商。 表1汇总了额外买方印花税税率的调整。 表1：住宅物业额外买方印花税税率调整 # 作为实体，发展商亦须按实体适用的25%额外买方印花税税率缴税。发展商可申请减免该25%额外买方印花税，惟须符合条件（包括在规定期限内完成并售出所有单位：非持牌发展商为3年，持牌发展商为5年）。详情见《印花税（非持牌住房发展商）（额外买方印花税减免）规则》及《印花税（住房发展商）（额外买方印花税减免）规则》。 ^ 发展商指从事住房单位建造与销售业务的实体。 * 针对发展商的此项新增5%额外买方印花税，是在所有实体须缴的25%额外买方印花税之外额外征收。该5%额外买方印花税不予减免，须在购买住宅物业时预先缴付。 由两个或以上不同身份买方联名购买的，将适用其中最高的额外买方印花税税率。不过，至少有一方为新加坡公民配偶的已婚夫妇联名购买首套住宅物业，将继续获得额外买方印花税全额减免。 至少有一方为新加坡公民配偶的已婚夫妇，联名购买第二套住宅物业的，可继续申请退还额外买方印花税，前提是他们在以下较早日期起计6个月内售出其首套住宅物业：（a）购买第二套住宅物业之日，或（b）第二套住宅物业的临时入伙准证（TOP）或法定完工证书（CSC）签发之日（若购买时该物业尚未竣工）。 对于卖方已于2018年7月5日或之前向潜在买方授予购房期权（OTP），且该期权在2018年7月6日或之后未作修改的个案，设有过渡安排。对此类个案，若期权在本宣布后3周内行使（即于2018年7月26日或之前行使）或在期权有效期内行使（以较早者为准），则适用现行额外买方印花税税率，而非经修订的税率。 收紧贷款与估值比率上限 金融机构发放的所有住房贷款的贷款与估值比率上限将收紧5个百分点。经修订的贷款与估值比率上限不适用于建屋发展局（HDB）发放的贷款。表2汇总了贷款与估值比率上限的调整： 表2：金融机构住房贷款的经修订贷款与估值比率上限 * 若所购物业为组屋，则为25年。 经收紧的贷款与估值比率上限，将适用于购房期权于2018年7月6日或之后授予的住宅物业购买贷款。 配合住房贷款贷款与估值比率上限的收紧，按揭资产套现贷款（MWL）的贷款与估值比率上限将收紧如下： a. 借款人没有为购买其他住宅物业而尚未还清的住房贷款：75%；以及 b. 借款人有为购买其他住宅物业而尚未还清的住房贷款：45%。 经收紧的贷款与估值比率上限，将适用于2018年7月6日或之后提交的按揭资产套现贷款申请2。 政府将继续密切关注房地产市场，并在必要时调整政策，以维持稳定且可持续的房地产市场。 1 《印花税（非持牌住房发展商）（额外买方印花税减免）规则》及《印花税（住房发展商）（额外买方印花税减免）规则》 2 对于现有按揭资产套现贷款的再融资，将继续适用现行贷款与估值比率为80%，或60%（适用于有为购买其他住宅物业而尚未还清住房贷款的借款人）的上限。现有按揭资产套现贷款指于2018年7月6日之前申请的贷款。