Financing Options for Foreign Buyers in Singapore | Homejourney Guide

Financing Options for Foreign Buyers in Singapore: Quick Overview

If you are a foreigner buying property in Singapore, your main financing options are local bank mortgages, selected international banks’ cross-border packages, and in limited cases private lenders, all subject to Singapore’s Loan-to-Value (LTV) limits, Total Debt Servicing Ratio (TDSR) and Additional Buyer’s Stamp Duty (ABSD). Foreign buyers generally need at least 25% to 40% of the purchase price in cash upfront, as CPF cannot be used and foreigner LTVs are often more conservative than for Singapore Citizens.[1][3][6]

This guide is a focused cluster article under Homejourney’s main pillar on the Complete Guide for Foreigners Buying Property in Singapore Step-by-Step Property Buying Process for Foreigners | Homejourney . Here we zoom in specifically on Financing Options for Foreign Buyers in Singapore, including practical, on-the-ground tips for UAE buyers in Singapore, Dubai residents exploring investment units near Orchard or Marina Bay, and Emirati investors building a Middle East–Singapore property portfolio.

1. What Financing Options Do Foreign Buyers Really Have?

Based on day‑to‑day experience helping foreign clients on Homejourney, the realistic financing landscape in 2024–2025 looks like this:

Local Singapore bank home loans – Main option for most foreign buyers (including UAE buyer Singapore and Dubai resident property investors).
International banks’ “Premier / International” mortgages – For higher‑net‑worth clients with sizeable assets under management (e.g. HSBC Premier International).[4]
Private lenders / boutique financiers – Short‑term or bridging loans with stricter conditions and usually higher rates; suitable only for experienced investors.[1]
Offshore financing in your home country – Some Emirati investors arrange loans from UAE banks secured against assets back home, then pay cash in Singapore; this is external to Singapore’s banking system and still subject to MAS rules on the Singapore loan side if any.

Singapore does not have special mortgage schemes just for foreigners; instead, you access largely the same bank products as locals, but with tighter internal credit assessment and the same Monetary Authority of Singapore (MAS) regulatory caps on LTV and TDSR.[1][2][3]

2. Key Concepts: LTV, TDSR, ABSD and CPF (Explained Simply)

2.1 Loan-to-Value (LTV) for Foreign Buyers

Loan-to-Value (LTV) is the maximum percentage of the property price or valuation (whichever is lower) that banks can lend you. For many first‑time buyers, this is the single most important number.

MAS caps typical LTVs at up to 75% for borrowers with no outstanding housing loans, assuming loan tenure and age limits are met.[1][2]
If you already have one or more housing loans, the LTV cap steps down (e.g. 45% or 35%).[1]
Foreigner status itself does not change the MAS cap, but banks often apply stricter internal limits (e.g. 60–70% LTV) depending on your profile and where your income is earned.[1][3]

Insider observation: In practice, an employed foreign professional working in Raffles Place on an Employment Pass, with salary paid in SGD, often gets closer to the 70–75% bracket. Offshore income only (for example a Dubai-based salary with no Singapore tax record) might see offers nearer 60–65% and more document checks.

2.2 Total Debt Servicing Ratio (TDSR)

Total Debt Servicing Ratio (TDSR) is a MAS rule that caps your total monthly debt obligations (including your new home loan, car loans, personal loans and credit cards) at a fixed percentage of your gross monthly income. As at 2024–2025, the TDSR limit is generally 55%, and it applies to all borrowers, including foreigners.[3]

Important nuance for foreign buyers:

Overseas income is often haircut (discounted) by banks when computing TDSR to account for FX and verification risk.
MAS also requires banks to stress‑test your loan at a higher interest rate (usually 3.5% or more for residential) when assessing TDSR, even if the headline rate is much lower.

2.3 Additional Buyer’s Stamp Duty (ABSD)

ABSD is an extra stamp duty payable on top of Buyer’s Stamp Duty (BSD) when you buy residential property. Foreigners pay a significantly higher ABSD rate than Singapore Citizens.[6][8]

As at 2024–2025:

Most foreigners buying any residential property (including a first property) face an ABSD rate much higher than locals.[6][8]
Certain nationals (e.g. citizens of the USA, Switzerland, Norway, Iceland and Liechtenstein) receive the same stamp duty treatment as Singapore Citizens due to Free Trade Agreements, and thus do not pay the foreigner ABSD rate.[6][8]

For exact, updated ABSD percentages, always refer to IRAS’ official page on Additional Buyer’s Stamp Duty.[8] Homejourney’s ABSD Stamp Duty Calculator and Guide (2025) provides worked examples and comparisons: ABSD Stamp Duty Calculator and Guide (2025) | Homejourney Singapore .

2.4 CPF Usage Rules – Why Foreigners Need Full Cash

Foreigners cannot use Singapore’s Central Provident Fund (CPF) to pay for property purchases. That means:

Downpayment must be fully in cash.
Legal fees, stamp duties (BSD + ABSD) and most other costs are also paid in cash.

For example, PropertyGuru estimates that foreigners buying a condo should budget the entire minimum downpayment in cash, since no CPF OA savings can be used.[6]

3. Typical Financing Structures for Different Foreign Profiles

3.1 Employed Foreign Professional in Singapore

Profile: An EP holder working in the CBD, renting in Tanjong Pagar, now buying a S$1.6M new launch near Outram Park MRT.

Likely option: Local bank loan (e.g. DBS, UOB, OCBC, HSBC) using income in SGD.
Indicative LTV: Up to ~75% if this is your first housing loan and you pass TDSR and age / tenure conditions.[1][2][3]
Indicative downpayment: At least 25% in cash, plus BSD and ABSD in cash.[3][6]
Interest: 2.5–2.75% p.a. floating (SORA‑pegged) is a common range in 2025, with short fixed‑rate options for 2–5 years.[2][3]

Local tip: Banks are fussier about older leasehold units with less than 30 years left on the lease. Many lenders will either reduce LTV sharply or decline the loan altogether.[2]

3.2 UAE Buyer Singapore & Dubai Resident Property Investor

Profile: Dubai‑based entrepreneur, exploring a S$2.2M two‑bedder at Marina Bay or River Valley as part of a Middle East Singapore property diversification plan.

You can still apply for a Singapore bank loan, but your overseas income will be more heavily scrutinised and often haircut for TDSR.[1][3]
Some international banks (e.g. HSBC Premier International) offer packages targeted at global clients, especially if you keep significant assets with them.[4]
Expect lower effective LTV than a local salary earner in Singapore; planning for 30–40% cash equity plus ABSD is safer.

For UAE and Dubai residents, Homejourney’s specialised guide is a useful companion reading: UAE & Dubai Residents Buying Property in Singapore: Homejourney Guide UAE & Dubai Residents Buying Property in Singapore: Homejourney Guide .