Govt will make calibrated adjustments to the Seller’s Stamp Duty (SSD) and Total Debt Servicing Ratio (TDSR) framework.
Adjustments to take Effect from 11 March 2017
a) SSD holding period is adjusted to 3 years, down from the current 4 years;
b) Lower the SSD rate by four percentage points for each tier. The new SSD rates will range from 4% (for properties sold in the third year) to 12% (for those sold within the first year).
This will apply to all residential property purchased on and after 11 March 2017.
Additional Buyer’s Stamp Duties (ABSD) and Loan to Value (LTV) Limits
1. The Government is retaining the current ABSD rates and LTV limits so as to encourage prudent borrowing by households. Under the current TDSR framework, property loans extended by a bank cannot exceed a TDSR threshold of 60 per cent.
2. However, this 60 per cent threshold will no longer apply to mortgage equity withdrawal loans with LTV ratios of 50% and below. These refer to loans where borrowers in their retirement years will borrow against the value of their properties to obtain more cash. This move is expected to affect only a small group of owners.
Closing the loophole for stamp duties for share transfer through equities.
Significant owners of residential property-holding entities (PHEs) will be subject to the usual stamp duties when they transfer equity interest in such entities, similar to what would happen if they were to buy or sell the properties directly.
The Stamp Duties (Amendment) Bill will be tabled in Parliament today to give effect to this policy intent.
Source: Ministry of National Development, Ministry of Finance and Monetary Authority of Singapore
10 MARCH 2017