Decoupling Calculator
Use our decoupling calculator to estimate costs and potential savings when restructuring property ownership in Singapore. This service applies only to private properties, including Executive Condominiums (ECs) that have completed their Minimum Occupation Period (MOP).
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In most joint property ownership arrangements, two parties — often spouses — co-own a residential property. If one party wishes to purchase a second property as a first-time buyer (and thus benefit from lower Additional Buyer's Stamp Duty, or ABSD), they may consider selling their share of the existing property to the other party.
This process is commonly known as property decoupling. Once completed, one person becomes the sole legal owner, while the other is considered a non-owner in the eyes of ABSD regulations — which can lead to substantial cost savings in their next property purchase.
Decoupling isn't just a paperwork process. It involves legal fees, stamp duties, CPF refunds, and possibly refinancing a home loan — all of which should be estimated before you commit. Our Decoupling Calculator allows you to:
- Understand the financial structure for both the seller (outgoing owner) and buyer (incoming sole owner)
- Estimate the loan commitment under the new single ownership
- Calculate the potential cash surplus or shortfall from the part-sale transaction
- View a breakdown of the estimated miscellaneous costs involved
This is especially helpful if you are planning your finances for a second property purchase and want to understand what the restructuring process might involve.
There are several strategic reasons why Singapore homeowners opt for decoupling:
Reducing ABSD Payable on a Second Property
Singapore imposes ABSD on second and subsequent residential property purchases. By decoupling, one party can purchase another property under their name as a first-time buyer, and potentially save on ABSD, especially for high-value homes.
Property Portfolio Planning
Some couples or families aim to build a diversified property portfolio. Holding properties under separate names allows each party to invest independently, while managing risk and ownership more flexibly.
Estate and Succession Planning
For some, decoupling allows clearer asset distribution across generations. It can simplify future planning for wills, inheritance, or gifting property to children.
Financial Independence
In certain cases, one party may want to take full ownership of the property to reflect their financial contribution or prepare for individual financial planning.
While the long-term benefits can be attractive, it's essential to understand the financial and procedural commitments required for decoupling:
CPF Refunds
If CPF savings were used in the original purchase, the outgoing party must refund the principal amount used along with accrued interest back to their CPF account.
Buyer's Stamp Duty (BSD)
The transfer of ownership is treated as a sale between two parties, which means BSD is payable based on the market value of the share being transferred.
Legal & Valuation Fees
You'll need a lawyer to draft the sale and purchase agreement, facilitate the property title transfer, and handle the transaction with CPF and IRAS. A professional valuation of the property will also be required.
Loan Refinancing
If the property has an outstanding mortgage, the remaining owner will need to refinance the home loan under their sole name. This involves bank assessments of income, Total Debt Servicing Ratio (TDSR), and credit standing.
Get a clearer picture of your costs with our comprehensive calculator.
Decoupling is not universally allowed for all property types in Singapore.
HDB Flats
Decoupling is not permitted solely for financial reasons. It is only allowed under specific life events, such as divorce, death of an owner, or under HDB-approved circumstances. Using decoupling purely to restructure ownership for investment or ABSD-related reasons is not allowed under current policies.
Private Properties
For private residential properties (condominiums, landed homes), the process is more flexible. Decoupling is generally allowed, as long as both parties are agreeable and the transaction complies with CPF and IRAS requirements.
While tools like our Decoupling Calculator provide a helpful starting point, every homeowner's situation is unique. From refinancing eligibility to CPF refunds and legal nuances — small differences can lead to very different outcomes.
Understand how decoupling applies to your specific property, financials, and long-term goals.
Evaluate if the savings from decoupling outweigh the legal, stamp duty, and refinancing costs.
We walk you through CPF refund rules, accrued interest, and how they affect your next purchase.
Need to take over the loan? We assess your borrowing eligibility and recommend options.
Schedule a free consultation with our mortgage specialists to see how decoupling could work for your specific situation.
Book Your Free ConsultationFrequently Asked Questions About Property Decoupling in Singapore
Property decoupling involves one co-owner transferring their share of a jointly owned property to the other, resulting in sole ownership. This strategy is often employed to enable the transferring party to purchase another property without incurring Additional Buyer’s Stamp Duty (ABSD).
Yes, decoupling is a legal process. However, it's crucial to ensure that the transaction reflects genuine ownership changes. The Inland Revenue Authority of Singapore (IRAS) scrutinizes arrangements that appear artificial or are solely intended to circumvent ABSD.
Decoupling HDB flats is generally restricted. Transfers of ownership are permitted only under specific circumstances, such as divorce, death, or financial hardship. For private properties, decoupling is more straightforward and commonly practiced.
By transferring one party's share of the property to the other, the transferring party is no longer considered a property owner. This status allows them to purchase another property without being subjected to ABSD, which is levied on individuals owning multiple properties.
Decoupling can entail several costs, including:
Buyer’s Stamp Duty (BSD) on the transferred share
Legal and conveyancing fees
Property valuation fees
CPF refunds with accrued interest
Refinancing costs, if applicable
Seller’s Stamp Duty (SSD), if the property is sold within the stipulated holding period
Yes, potential risks include:
Financial strain on the sole owner due to increased loan obligations
Legal complications if not properly executed
Potential scrutiny from IRAS if the transaction appears artificial
It's advisable to consult professionals before proceeding.