Current settings of macroprudential policies
The tables below show the current settings of macroprudential policies in Singapore. This includes tax policies set by the Ministry of Finance.
Countercyclical Capital Buffer (CCyB)
As MAS has not observed any broad-based domestic credit overheating in Singapore at this juncture, MAS has maintained the CCyB rate at 0%.Property market-related macroprudential policies
Housing Loan-to-Value (LTV) limit
LTV limits on housing loans granted by financial institutions are tiered according to the number of loans a borrower has.
| No. of loans | LTV Limit |
|---|---|
| 1st housing loan | 75% |
| 2nd housing loan | 45% |
| 3rd housing loan | 35% |
LTV limits for mortgage equity withdrawal loans (MWLs):
| Type of borrower | LTV Limit |
|---|---|
| For a borrower with no outstanding housing loan for the purchase of another residential property | 75% |
| For a borrower with one or more outstanding housing loans for the purchase of another residential property |
45% |
Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR)
- The TDSR cap is set at 55%, which limits the entire monthly debt obligation of borrowers at 55% of their monthly income.
- The MSR cap is set at 30% for housing loans granted by FIs for HDB flats and executive condominium units purchased directly from property developers.
Maximum Tenure Limit
The maximum loan tenure allowed is 35 years for all housing loans granted for private property, and 30 years for public housing. Loans exceeding a tenure of 30 years for private property, and 25 years for public housing, will face tighter LTV limits. For these loans, the LTV limit is (i) 15%-25% for a borrower with one or more outstanding residential property loans and (ii) 55% for a borrower with no outstanding residential property loan.
Seller's Stamp Duty (SSD)
The SSD is imposed on all residential properties sold within three years of purchase. The SSD rate is set at 4%, 8% and 12% for properties sold within 3 years, 2 years and 1 year of purchase respectively.
Industrial properties and land bought and sold within three years of the date of purchase are subject to the following SSD rates:
| Time period in which property is held | SSD Rate |
|---|---|
| If the property is sold in the first year of purchase, i.e. the property is held for one year or less from the date of purchase | 15% |
| If the property is sold in the second year of purchase, i.e. the property is held for more than one year and up to two years from the date of purchase | 10% |
| If the property is sold in the third year of purchase, i.e. the property is held for more than two years and up to three years from the date of purchase | 5% |
Additional Buyer’s Stamp Duty (ABSD)
The ABSD varies, depending on the number of property an individual has and his/her citizenship.
| ABSD Rates | 1st Property | 2nd Property | 3rd and subsequent property |
|---|---|---|---|
| Singapore Citizens | 0% | 17% | 25% |
| Permanent Residents | 5% | 25% | 30% |
| Foreigners | 30% regardless of number of properties owned | ||
| Entities | 35% regardless of number of properties owned plus additional 5% for Housing Developers |
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History of macroprudential policies in Singapore
This table shows the various macroprudential policies which were introduced in Singapore over the years since 1996.
May
Introduction of Housing Loan-to-Value (LTV) limit for Financial Institutions (FIs)
Housing loan quantum not to exceed 80 percent of purchase price or valuation, whichever is lower.
Foreigners disallowed to have SGD loans
Disallowed the granting of Singapore dollar loans to non-Singapore Permanent Resident (SPR) foreigners and non-Singapore companies for the purchase of residential properties.
Introduction of deemed income tax on gains from sale of property
Deemed income tax on gains from the sale of property within 3 years of purchase was introduced to discourage speculation in the residential property market.
Introduction of Seller’s Stamp Duty (SSD)
The SSD was imposed on residential properties sold within three years of
purchase as follows:
- Sold within the first year of purchase, that is, the property is held for 1 year or less from its purchase date – the full SSD rate (1 percent for the first S$180,000 of the consideration, 2 percent for the next S$180,000, and 3 percent for the balance) will be imposed.
- Sold within the second year of purchase, that is, the property is held for more than 1 year and up to 2 years – 2/3 of the full SSD rate.
- Sold within the third year of purchase, that is, the property is held for more than 2 years and up to 3 years – 1/3 of the full SSD rate.
Bring forward stamp duty payment date
Payment of stamp duty was brought forward to the time of agreement to purchase a property. Previously, a buyer who purchased an uncompleted property need not pay stamp duty until the title was transferred to him. This allowed property speculators who bought and sold properties quickly to pay no stamp duty.
November
Suspension of SSD
The SSD was suspended to improve the liquidity of transactions in the market.
July
Cap on banks’ property exposures
Property-related exposure of a bank capped at 35% of total eligible assets.
October
Removal of deemed income tax on gains from sale of property within 3 years of purchase
The Government removed deemed income tax on gains from the sale of property within 3 years.
Foreigners allowed to have SGD loans
The restrictions that foreigners who were not PRs and non-Singapore companies were not allowed to obtain housing loans in Singapore dollars were lifted.
Read moreJuly
Increased LTV limit and decreased minimum cash down payment for housing
The LTV limit applicable to housing loans granted by FIs was raised from 80 to 90 percent, and the minimum cash down payment was decreased from 10 to 5 percent.
September
Disallowed Interest-only housing loans (IOL) and Interest Absorption Scheme (IAS) loans
These are loans in which the developer absorbed interest payments on behalf of the borrower for a period of time.
February
Lowered Housing LTV limitThe LTV limit applicable to housing loans granted by financial institutions was lowered from 90 to 80 percent.
SSD was re-introduced
SSD was imposed on all residential properties and residential lands that are bought on or after February 20, 2010 and sold within one year from the date of purchase. The SSD was levied at 1 percent for the first $180,000 of the consideration, 2 percent for the next $180,000, and 3 percent for the balance.
August
Lowered LTV limit and raised minimum cash down payment
For property buyers with one or more outstanding housing loans: LTV limit was lowered from 80 to 70 percent for housing loans granted by financial institutions and the minimum cash down payment for housing was raised from 5 to 10 percent.
Increased holding period for imposition of SSDFor residential properties bought on or after August 30, 2010, the holding period for the imposition of SSD on residential properties sold was increased from one to three years. The SSD levied on residential properties was revised as follows:
- Sold within the first year of purchase, i.e. the property is held for 1 year or less from its purchase date – the full SSD rate (1 percent for the first $180,000 of the consideration, 2 percent for the next $180,000, and 3 percent for the balance) will be imposed.
- Sold within the second year of purchase, i.e. the property is held for more than 1 year and up to 2 years – 2/3 of the full SSD rate.
- Sold within the third year of purchase, i.e. the property is held for more than 2 years and up to 3 years – 1/3 of the full SSD rate.
January
Lowered Housing LTV limits
- For property buyers who are individuals with one or more outstanding housing loans: LTV limit for housing loans granted by FIs was lowered from 70 to 60 percent.
- For property buyers who are not individuals: LTV limit was lowered from 70 to 50 percent for housing loans granted by FIs.
Increased holding period for imposition of SSD
Holding period for imposition of SSD was increased from three to four years.
Increased SSD rate
SSD rates were raised to 16, 12, 8 and 4 percent for residential properties bought on or after January 14. 2011, and are sold in the in 1st, 2nd, 3rd and 4th year of purchase respectively.
December
Imposition of Additional Buyer's Stamp Duty (ABSD)
ABSD was imposed on the following categories of private residential property purchases:
- 10 percent for foreigners and non-individuals (corporate entities) buying any residential property;
- 3 percent for Singapore Permanent Residents (SPRs) owning one and buying a second and subsequent residential property; and
- 3 percent for Singapore Citizens (SC) owning two and buying a third and subsequent residential property.
October
Introduced Maximum Loan Tenure for housing loans from financial institutions
The new loan tenure rules imposed a limit of 35 years on the tenure of housing loans granted by financial institutions for the purchase of any residential property.Lowered Housing LTV limits
- LTV limits for new housing loans to borrowers who are individuals, if
- (i) the tenure exceeds 30 years; or
(ii) the loan period extends beyond the retirement age of 65 years, were lowered to
(i) 40 percent for a borrower with one or more outstanding residential property loans; and
(ii) 60 percent for a borrower with no outstanding residential property loan.
- The LTV limit for housing loans to non-individual was lowered from 50 to 40 percent.
January
Lowered LTV limits and raised minimum cash down payment for housing
- LTV limits for new housing loans to borrowers who are individuals with one outstanding housing loan and applying for another housing loan were lowered to
- (i) 50 percent if the loan tenure does not exceed 30 years and the loan period does not extend beyond the borrower’s age of 65 years and;
(ii) 30 percent if the loan tenure exceeds 30 years or the loan period extends beyond the borrower’s age of 65 years. - LTV limits for new housing loans to borrowers who are individuals with two or more outstanding housing loans and applying for another housing loan were lowered to
- (i) 40 percent if the loan tenure does not exceed 30 years and the loan period does not extend beyond the borrower’s age of 65 years; and
(ii) 20 percent if the loan tenure exceeds 30 years or the loan period extends beyond the borrower’s age of 65 years. - The LTV limit for housing loans to non-individuals was lowered to 20 percent, regardless of whether the borrower has any outstanding housing loan.
- Raised the minimum cash down payment for individuals applying for a second or subsequent housing loan from 10 to 25 percent.
Introduction of Mortgage Servicing Ratio (MSR) for public housing loans granted by FIs
The MSR was capped at 30 percent of a borrower’s gross monthly income.
Raised ABSD rates
ABSD rates were raised between five and seven percentage points across the board. Imposed ABSD on SPRs purchasing their first residential property and on Singapore citizens purchasing their second residential property.
June
Introduction of Total Debt Servicing Ratio (TDSR) framework
The TDSR framework comprised the standardisation of the methodology for assessing the debt servicing ability of borrowers applying for residential property loans. FIs are required to compute the percentage of total monthly debt obligations to gross monthly income, on a consistent basis and based on a headline threshold of 60 percent.
Read more
FAQ (516 KB)
August
Revised Mortgage Loan Terms for public housing
The maximum tenure of new housing loans and re-financing facilities granted by FIs for the purchase of HDB flats was reduced from 35 years to 30 years. New loans with tenures exceeding 25 years and up to 30 years will be subject to tighter LTV limits.
Lowered LTV limits for public housing
- LTV limits for new housing loans granted for the purchase of public housing to borrowers who are individuals with no outstanding housing loan were lowered to 60 percent if the loan tenure exceeds 25 years or the loan period extends beyond the borrower’s age of 65 years.
- LTV limits for new housing loans granted for the purchase of public housing to borrowers who are individuals with one outstanding housing loan and applying for another housing loan were lowered to
- (i) 50 percent if the loan tenure does not exceed 25 years and the loan period does not extend beyond the borrower’s age of 65 years; and
(ii) 30 percent if the loan tenure exceeds 25 years or the loan period extends beyond the borrower’s age of 65 years.
- LTV limits for new housing loans granted for the purchase of public housing to borrowers who are individuals with two or more outstanding housing loans and applying for another housing loan were lowered to
- (i) 40 percent if the loan tenure does not exceed 25 years and the loan period does not extend beyond the borrower’s age of 65 years; and
(ii) 20 percent if the loan tenure exceeds 25 years or the loan period extends beyond the borrower’s age of 65 years
December
Introduced MSR for Executive Condominiums (ECs)The MSR for housing loans granted by financial institutions for EC units bought directly from property developers is capped at 30 percent of a borrower’s gross monthly income.
January
Implementation of countercyclical capital buffer (CCyB) frameworkImplemented the CCyB in MAS’ macroprudential policy framework with effect from 1 January 2016. The CCyB was set at zero percent.
September
Revisions to the TDSR framework
Disapplied the TDSR framework to borrowers refinancing their owner-occupied housing loan, regardless of when the residential property was bought. The refinancing of all investment property loans would be subject to the TDSR threshold, except if they can commit to a debt reduction plan to repay at least 3% of their outstanding property loan over a period of no more than three years, and they meet the lender’s credit assessment.
March
Revisions to TDSR frameworkDisapplied TDSR framework to mortgage equity withdrawal loans with housing LTV ratios of 50 percent and below.
Revisions to SSD
Imposed SSD on holding periods of up to three years, down from four years previously; and lower the SSD rate by four percentage points for each tier. The new SSD rates range from 4 percent (for properties sold in the third year) to 12 percent (for those sold within the first year).
July
Lowered Housing LTV LimitsLowered LTV limits by 5 percentage points for all housing loans granted by FIs.
Raised ABSD Rates- Raised ABSD by 5 percentage points for individuals (excluding SC and SPR purchasing their first residential property), and by 10 percentage points for entities
- Introduced an additional ABSD of 5 percent that is non-remittable under the Remission Rules (payable on the purchase price or market value, as applicable) for developers purchasing residential properties for housing development.
- The ABSD rates for SC and SPR purchasing their first residential property is retained at 0 and 5 percent respectively.
December
Tightened Total Debt Servicing Ratio (TDSR) threshold
TDSR threshold tightened from 60% to 55%. Borrowers’ new mortgages cannot cause their monthly loan repayments to exceed 55% of monthly income.
TDSR for refinancing existing property loans granted before 16 Dec 2021 remains at 60%.
Raised ABSD Rates
ABSD rates were raised by between five and fifteen percentage points across the board, except for first property purchase by Singapore Citizens and Permanent Residents.
Selected macroprudential policy measures since 2009
The table below lists the changes made to the housing loan-to-value (LTV) limits and residential property stamp duty tax rates since January 2009. The dates represent key policy changes to either one of selected policy measures.
Housing LTV and Tax-related Measures
| Housing Loan-to-Value (LTV) limits (%)* (tiered by loan count and borrower type) |
||||
|---|---|---|---|---|
| Date | With no outstanding housing loans | With one outstanding housing loan | With two or more outstanding housing loans | For non-individuals |
| January 2009 | 90 | 90 | 90 | 90 |
| February 2010 | 80 | 80 | 80 | 80 |
| August 2010 | 80 | 70 | 70 | 70 |
| January 2011 | 80 | 60 | 60 | 50 |
| December 2011 | 80 | 60 | 60 | 50 |
| October 2012 | 80 | 60 | 60 | 40 |
| January 2013 | 80 | 50 | 40 | 20 |
| March 2017 | 80 | 50 | 40 | 20 |
| July 2018 | 75 | 45 | 35 | 15 |
*An LTV limit that is 20 percentage points lower is applicable if the loan tenure exceeds 30 years (or 25 years where the property purchased is a HDB flat) or loan period extends beyond the borrower’s retirement age (65 years).
| Seller's Stamp Duty (SSD) rates (%) (tiered by holding period) |
||||
|---|---|---|---|---|
| Date | Sold within the first year of purchase | Sold within the second year of purchase | Sold within the third year of purchase | Sold within the fourth year of purchase |
| January 2009 | 0 | 0 | 0 | 0 |
| February 2010 | 1% for the first S$180,000 of the consideration, 2% for the next S$180,000, and 3% for the balance | 0 | 0 | 0 |
| August 2010 | 1% for the first S$180,000 of the consideration, 2% for the next S$180,000, and 3% for the balance | 2/3 of the full SSD rate | 1/3 of the full SSD rate | 0 |
| January 2011 | 16 | 12 | 8 | 4 |
| December 2011 | 16 | 12 | 8 | 4 |
| October 2012 | 16 | 12 | 8 | 4 |
| January 2013 | 16 | 12 | 8 | 4 |
| March 2017 | 12 | 8 | 4 | 0 |
| July 2018 | 12 | 8 | 4 | 0 |
* For February and August 2010, we used the highest tax rate for each category for the chart.
| Additional Buyer's Stamp Duty (ABSD) rates (%) (tiered by property count and buyer type) |
||||||||
|---|---|---|---|---|---|---|---|---|
| Date | Singapore Citizens (1st property) | Singapore Citizens (2nd property) | Singapore Citizens (3rd and subsequent property) | Permanent Residents (1st property) | Permanent Residents (2nd property) | Permanent Residents (3rd and subsequent property) | Foreigners | Non-individuals (Entities) |
| January 2009 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| February 2010 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| August 2010 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| January 2011 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| December 2011 | 0 | 0 | 3 | 0 | 3 | 3 | 10 | 10 |
| October 2012 | 0 | 0 | 3 | 0 | 3 | 3 | 10 | 10 |
| January 2013 | 0 | 7 | 10 | 5 | 10 | 10 | 15 | 15 |
| March 2017 | 0 | 7 | 10 | 5 | 10 | 10 | 15 | 15 |
| July 2018 | 0 | 12 | 15 | 5 | 15 | 15 | 20 | 25** |
| December 2021 | 0 | 17 | 25 | 5 | 25 | 30 | 30 | 35** |
** Plus an additional 5% for housing developers (non-remittable)
