Financing Options for Foreign Buyers in Singapore: Your Complete Guide
Foreign buyers in Singapore, including Taiwanese buyers and ROC nationals, can finance property purchases through bank loans, private lenders, or cash, but face strict limits like 75% maximum LTV and 25% minimum cash downpayment.
At Homejourney, we prioritize your safety by verifying all financing data from official sources like MAS and URA, helping you make confident decisions in a trusted environment.
This cluster article focuses on tactical financing strategies, linking back to our pillar guide on Step-by-Step Property Buying Process for Foreigners. Whether you're a Taiwan citizen exploring properties or an investor, understanding these options ensures transparent, secure transactions.
Why Financing Matters for Foreign Buyers in 2025
In Singapore's competitive 2025 market, foreign buyers pay 60% ABSD on residential properties, making efficient financing crucial.
Current average mortgage rates hover at 2.5% to 2.75% based on SORA, replacing SIBOR[4]. Taiwanese buyers purchasing in prime areas like Orchard or Marina Bay must plan for high upfront costs, as ABSD cannot be financed via loans[1].
Homejourney's bank rates comparison tool provides real-time verified rates, empowering you with data-backed insights while we listen to user feedback for continuous improvements.
Key Financing Rules for Foreigners
Foreigners cannot use CPF for purchases and face MAS regulations on LTV, TDSR, and downpayments.
- Loan-to-Value (LTV) Limit: Up to 75% for first-time buyers with no existing loans; drops to 45% with one loan, 35% with two[2].
- Downpayment: Minimum 25% cash for financed purchases; 50% if no loan eligibility[1].
- Loan Tenure: Capped at 35 years or until age 75[2].
- TDSR: Limits debt servicing to 55% of income; accredited investors may qualify for exemptions via private lenders[2].
These rules from MAS ensure market stability. For Taiwan buy Singapore property deals, verify your status—onshore foreigners need strong credit, offshore need income proof[2].
ABSD and Other Costs
Expect 60% ABSD on top of BSD, paid upfront. Use Homejourney's ABSD Calculator for precise estimates, verified against IRAS guidelines[10]. Insider tip: Factor in legal fees (1-2% of price) and agent commissions.
Available Financing Options
Choose from these vetted paths tailored for Taiwanese buyer Singapore investors.
1. Singapore Bank Loans
Banks like DBS, OCBC, and HSBC offer mortgages pegged to SORA or fixed deposits, with initial fixed rates for 3-5 years[3]. LTV up to 75%, but banks assess credit rigorously—offshore Taiwan citizens submit net worth statements[2].
Actionable step: Secure In-Principal Approval (IPA) first via Homejourney's mortgage rates page. Example: For a S$2M condo, borrow S$1.5M at 2.6% over 30 years, monthly ~S$6,000 (use our calculator).
2. Private Lenders and Bridging Loans
For faster approval, private funders offer up to 70% LTV with 24-hour IPAs, ideal for bungalows or condos[2]. Accredited investors bypass TDSR[2]. Rates higher (3-4%), terms 3-18 months.
Pro: Flexible for ROC national Singapore buyers; con: Costlier. Homejourney verifies lender credentials for your safety.
3. Cash Purchases or Overseas Financing
Many foreigners opt for full cash to avoid LTV caps, especially for non-eligible properties. Singapore banks like OCBC finance overseas but not vice versa easily[5].
| Option | LTV Max | Downpayment | Best For |
|---|---|---|---|
| Bank Loan | 75% | 25% cash | Credit-strong buyers |
| Private Loan | 70% | 30% cash | Quick closes |
| Cash | 100% | 0% | High-net-worth |
Step-by-Step Financing Process
- Assess Eligibility: Check LTV/TDSR via Homejourney tools. Gather passport, income proofs, credit report.
- Get IPA: Apply to 3-5 banks; expect 1-3 days[2].
- Property Hunt: Use Homejourney property search for verified listings like condos in District 10.
- Submit OTP: Pay 1% option fee; finalize loan within 2 weeks.
- Complete Purchase: Pay downpayment, ABSD; collect keys in 8-12 weeks.
Timeline: 4-8 weeks total. For Taiwanese buyers, reference our Taiwan Nationals Guide.
Common Mistakes and Insider Tips
Avoid these pitfalls real foreign buyers face:
- Misjudging ABSD: A S$1.5M condo adds S$900K tax[1]. Prevent: Use our calculator.
- Poor credit prep: Offshore buyers rejected without net worth proof[2]. Tip: Build Singapore credit 6 months prior.
- Ignoring lease decay: Banks reject <30-year leases[3].
Local insight: Target new launches in non-landed (e.g., The Sail @ Marina Bay) for better LTV. Post-purchase, maintain with Homejourney aircon services.
Financial Breakdown Example
For S$2M condo (Taiwan buyer):
- ABSD: S$1.2M (60%)
- Downpayment: S$500K (25%)
- Loan: S$1.5M @2.6% = ~S$6,200/month
- Total upfront: ~S$1.82M
Disclaimer: Rates fluctuate; consult professionals. Homejourney provides estimates, not financial advice.
FAQ: Financing for Foreign Buyers
Can Taiwanese buyers get bank loans in Singapore?
Yes, up to 75% LTV with strong credit and income proof[2]. Check Homejourney bank rates.
What is the downpayment for foreign buyers?
Minimum 25% cash; 50% without loans[1].
Do ROC nationals pay ABSD?
Yes, 60% on residential properties[1]. See our ABSD guide.
How to compare financing options?
Use Homejourney's verified tools and consult IPA from multiple banks.
Are there TDSR exemptions?
Accredited investors via private lenders[2].
Ready to finance safely? Start with Homejourney's property search and our pillar Types of Properties for Foreigners. Contact us for personalized, transparent guidance—your trusted partner in Singapore property.
