Co-buying with a parent is common in Singapore, to pool incomes or to help a parent onto the ladder. The ABSD mechanics catch out more families than anything else in the process.
The ABSD trap
Where there is more than one buyer on the same purchase, IRAS applies the highest applicable ABSD rate among all of them to the entire price. If you are a Singapore Citizen with no property, co-buying with a parent who already owns one, your parent's second-property rate, 20% for a Citizen, 30% for a Permanent Resident, applies to the whole purchase, not just their portion of it. Know each co-buyer's exact property count and citizenship profile before you commit.
Joint tenancy or tenancy in common?
Co-owned property is held either as joint tenants, a single undivided whole with automatic survivorship on death, or as tenants in common, with defined shares that pass under a will rather than automatically. For a parent and child purchase, the choice should reflect the family's succession intentions, decided deliberately with a lawyer, not defaulted into.
How financing and liability work
A joint mortgage makes co-owners jointly and severally liable, the bank can pursue either party for the full outstanding amount regardless of any private arrangement on who pays what. An older co-owner on the loan can also shorten the maximum loan tenure, since tenure is constrained by the oldest borrower's age.
Plan the exit before you buy
The hardest part of a family co-purchase is rarely the buying, it is what happens years later if one party wants out, or circumstances change. Document how a buyout works, who has first right of refusal, and how disputes are resolved, before you sign, not after a disagreement has already started.
Frequently asked questions
If my parent already owns a property, will I pay ABSD on a joint purchase?
Yes. IRAS applies the highest applicable rate among all buyers to the entire purchase. If your parent's profile triggers the second-property rate, that rate applies to the whole price, not just their share of it.
Can a parent and child co-own and avoid ABSD entirely?
Not automatically. ABSD depends on each co-owner's profile and property count; there is no family exemption. If every co-buyer is genuinely buying their first property, the first-property rate applies, but a single existing owner among them raises the rate for everyone.
What if one co-owner stops paying the mortgage?
A joint mortgage makes both borrowers jointly and severally liable. The bank can pursue either co-owner for the full outstanding amount; a private agreement on who pays does not bind the bank.
Planning to co-buy with a parent or sibling?
Winfred works through each co-buyer's ABSD position, the manner of holding, and the financing before you sign, so there are no expensive surprises.
Book a free 30 minute callWinfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Rates and rules reflect the position as at 5 Aug 2026; verify current figures with IRAS, HDB, or MAS before making any decision.