Lease Stamp Duty

0.4% x Average Annual Rent x number of years (cap at 4)

All stamp duty (SSD, BSD etc) are to be rounded DOWN to the nearest dollar. Basically IRAS asking you to keep the change.

SSD

Sold within	Residential Rate	Industrial Rate
<= 1y	12%	15%
<= 2y	8%	10%
<= 3y	4%	5%

BSD

Purchase Price/Market Value	Residential BSD Rate
First $180k	1%
Next $180K	2%
Next $640k	3%
Next $500k	4%
Next $1.5m	5%
Excess of $3m	6%

For Non-residential BSD rate, the difference is “Excess of $1.5m, 5%”

ABSD

Category	1st	2nd	3rd and more
SC	0%	20%	30%
PR	5%	30%	35%

Category
Foreigners	60%
Entity/Trust	65%
Developer	5% + 35% remittable

• Developer 35% remittable upon condition: Sell ALL within 5 years of land purchase
• Married couple can refund when sold 1st property within 6 months
• Remission of ABSD (Trust), for individual and without condition
• SC + PR/FR 1st matrimonial home can refund
  • All others take the higher rate
• FR from Switzerland, Norway, America/USA, Iceland & Liechtenstein (SNAIL) will be treated as SC, due to Free Trade Agreements

Qualifying Certificate (QC)

• Imposed on foreign developers and listed company, excluding Sentosa Cove
• Completed within 5 years -> obtain TOP
• Thereafter TOP, must sell ALL within 2 years
  • Can extend up to 3 years with charges: 8/16/24% of land price
  • Pro-rated to number of unsold units
• Loophole: delist or sale to associate company
• ABSD supersedes QC
  • More punitive, no pro-rate

Property Tax

Annual Value x Progressive Rate

• Commercial & Industrial is 10%
• Residential is progressive rate, with a big table..
  • Different owner occupied or not
  • With changes in 2023, 2024.. Refer to IRAS

For 2024, owner occupied:

Annual Value	Rate
1st $8k	nothing
Next $22k	4%
Next $10k	6%
Next $15k	10%
Next $15k	14%
Next $15k	20%
Next $15k	26%
Exceeds $100k	32%

• Paid by 31 Jan, in advanced for the year
  • If HDB has 3m extension of stay, it is non-owner occupied for that 3m
  • When sold, buyer to privately reimburse to seller
• Addition & alteration (A&A) works
  • Continue owner occupied
• Demolition
  • AV = 5% of market freehold value of land
  • Rate = 10% (as if non-residential)
  • Remission to owner-occupied rate for max 2y
• Lease
  • When lease starts and paid stamp duty, IRAS will auto update
  • When lease end, must manually apply

Mortgage

	1st Loan	2nd Loan	3rd Loan
Cash downpayment	5%	25%	25%
LTV -20% if >30y or past 65yo	75%	45%	35%

• The rest with CPF/Cash
• Private max tenor is 35y
  • When LTV is -20%, the cash downpayment for 1st Loan is 10%
• HDB Specials!
  • Max LTV 80%
  • Max tenor 25y for HDB Loan, 30y for Bank Loan
• Stress testing interest rate
  • 4% for residential, 5% for commercial
  • HDB loan 3% (actual interest 2.6%)
• Total Debt Servicing Ratio (TDSR)
  • Max 55% of income for paying all debts
  • Haircut of 30% for all variable income
  • Less other debts eg car loan etc = New loan max repayment
• Mortgage Servicing Ratio (MSR)
  • Max 30% of income for property loan(s)
  • For BTO, new EC, and resale HDB (all has MOP)
  • Unlike TDSR, does not consider other debts; MSR only consider property loans
  • More stringent than TDSR
• Rights of the Mortgagee (Lender): Possession, Insure, consolidate loans, foreclose
• Rights of the Mortgagor (Borrower): Redemption, Sell, Inspect Title Deeds, Compel Transfer of Mortgage, Enjoyment

Income Weighted Average Age

Rounded up of (Age1 x Income1) + (Age2 x Income2) / (Income1 + Income2)

Mortgage Repayment Formula

m = Pr(1+r)^n / ((1+r)^n - 1)

• m is monthly repayment amount
• P is the principal sum
• r is the monthly interest rate (yearly / 12)
• n is the number of payments (year x 12)

Mortgage Duty

0.4% x loan amount, cap at max $500

Max CPF Usage

(Remaining Lease - 20) / (95 - 20 - youngest age) x Valuation Limit

Floor Area

sqm x 10.764 = sqft