List of Real Estate Definitions

Definitions for your convenience.

ABSD = Additional Buyer Stamp Duty

an additional property tax for your 2nd residential property purchase.

Asset Based Lending

qualifying for a loan based on what the bank determines as 'Liquidable Assets'.

BSD = Buyer Stamp Duty

a property tax for your 1st residential property purchase.

Cash Flow

as a landlord, cashflow this is the amount you have remaining after receiving rental and covering expenses—property tax, MCST, mortgage—for your leased property.

Capital Appreciation

the difference of property price from the date of purchase to the date of selling; typically referring to the change in value of a property when purchased for investment reasons.

Credit Bureau Report

a detailed breakdown of an individual's credit history prepared by a credit bureau


if you are self-employed or earn a variable income, the banks will only assess 70% of your income when qualifying for a loan.

Income Based Lending

qualifying for a loan based on your income.

IPA = In-Principle Approval

an estimate given by mortgage lenders to prospective buyers before finalising any property or to existing property owners before deciding on a refinancing.


a person who owns a property and rent it out to a tenant.

Liquidable Assets

i.e. Cash, Gold Stocks, Fixed Deposits

Loan Tenure

the total number of years you are allowed to loan for from the bank; the maximum loan tenure in Singapore is 30 years.

LTV = Loan To Value

the percentage amount you are eligible to loan out of the price of the property.

Monthly Mortgage

the monthly sum you pay to the bank for taking up the loan for your property, this is calculated by adding the monthly 'Principal' and 'Interest'.

Mortgage 'Principal'

the sum you take up for your property.

Mortgage 'Interest'

the interest charged on the loan you take up for your property; may be 'Fixed' or 'Compounding'.

NOA = Notice of Assessment

an IRAS document listing your income and taxes; this will be used to qualify for loan requirements.

Offer To Purchase

an official document from a buyer certifying their interest for your property.

Option To Purchase

an official document from a seller certifying their acceptance of the Offer To Purchase.

PSF = Per Square Foot

the property price divided by the unit area in square foot, signifying the value of the unit per square foot.

SSD = Seller's Stamp Duty

a property tax that a seller has to pay when they sell a property within the 3-year holding period

TDSR = Total Debt Servicing Ratio

the TDSR limits the amount borrowers can spend on debt repayments to 60 percent of their gross monthly income.

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