Lease Stamp Duty

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

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