GuidesHow To Avoid ABSD For Singapore Properties (Legally)

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Ryan J Ong

Ryan is an old school print journalist gone digital. He's lived in almost every type of housing in Singapore, from flats to landed homes. Over the past 18 years, he's been a content developer for companies large and small, a co-founder in an education business, and sometimes a voice on the radio. He also spends too much time and money on painting little plastic soldiers.

Baba boy
Baba boy

Hi, I am interested to learn more about your last method. What you are referring to is called the Owner-Essential Occupier Scheme. What do you think is the bare minimum income (or best combination for H&W) to get the best loan?

For an average 4k income on 1 person, HDB will only loan you about 50% LTV. So the alternative is the bank loan. Do you think an average 4k income on 1 person will be able to get a full LTV of 75% from the bank, despite the fact that both H&W are servicing the loan?

Stacked Homes
Stacked Homes

Hi Baba Boy, thanks for your question. For HDB loan, the LTV is 90% regardless if 1 person or 2 persons are servicing it. If 1 person is servicing the loan, then a lower cost HDB has to be purchased. All your CPF monies in your OA account will be used first. Beyond that, the Mortgage Servicing Ratio (MSR) of 30% must be met. This is the maximum proportion your monthly mortgage payment can be to your income. Going by that, someone earning $4K a month can have a maximum monthly mortgage payment of $1,200. For this amount in monthly… Read more »


Hi, would like to know, how to avoid ABSD, if I would like to purchase another resale private property . Currently, We own HDB n private condo.

Stacked Homes
Stacked Homes

Hi Sharon, considering that you currently own an HDB, it would be quite difficult to avoid ABSD if you still want to purchase residential properties without using a Trust – this is because you cannot decouple an HDB. One option is to sell your HDB and decouple your private condo to free up one buyer to purchase another private property.

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