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RES exam question on Taxes & Duties: Ms Fong, a Singapore Citizen, takes a $1,200,000 bank loan to buy her second…

MediumProperty Taxes (BSD, ABSD, SSD) · Paper 2

Ms Fong, a Singapore Citizen, takes a $1,200,000 bank loan to buy her second condominium, secured by a legal mortgage over the unit. She also pledges a flat she owns in Kuala Lumpur, by a document signed under hand, as extra security. Her lawyer explains the mortgage duty. (i) Duty on the legal mortgage is 0.4% of $1,200,000, which comes to $4,800. (ii) An equitable mortgage would attract duty at 0.2% of the loan, capped at $500. (iii) Mortgage duty is separate from the BSD and ABSD charged on her purchase of the unit. (iv) The document pledging the Kuala Lumpur flat, signed under hand, is exempt from stamp duty. Which of the statements above is/are correct?

  1. A(ii), (iii) and (iv) only
  2. B(i), (ii) and (iii) only
  3. C(iii) and (iv) only
  4. D(i) and (iv) only
Show answer & explanation

Answer

A. (ii), (iii) and (iv) only

Explanation

Answer: (ii), (iii) and (iv) only. Mortgage duty is capped at $500, so the $4,800 figure is wrong.(ii) True. An equitable mortgage attracts 0.2% of the loan, also capped at $500.(iii) True. Mortgage duty is charged on the mortgage, separately from the BSD and ABSD on the purchase document.(iv) True. A document signed under hand that uses property outside Singapore as security is exempt.Rule: From 22 Feb 2014 a mortgage attracts duty of 0.4% of the loan, and an equitable mortgage 0.2%, each capped at $500. A document signed under hand over property outside Singapore is exempt.Source: IRAS, Mortgage Duty, checked Oct 2026

Why the other options are wrong

  • (i) False. $4,800 ignores the cap. The duty is 0.4% of the loan capped at $500, so it is $500.

Study the concept behind this question: Stamp Duties Explained: BSD, ABSD & SSD (Singapore, 2026)

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Original study material mapped to the public CEA RES syllabus. Verify any rate-based figures against current IRAS/CPF/MAS rules before relying on them.