Financing Options for Foreign Buyers in Singapore | Homejourney

For foreign buyers in Singapore, financing options are mainly bank home loans from local or international banks, combined with careful cash planning for downpayment, Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD). Foreigners cannot use CPF for property purchases and usually face lower Loan-to-Value (LTV) limits and higher cash requirements than Singapore Citizens.[4]

This guide focuses specifically on Financing Options for Foreign Buyers in Singapore, and supports our main pillar guide on the complete foreign-buyer journey. For a step‑by‑step overview of the entire purchase process, see: Step-by-Step Property Buying Process for Foreigners | Homejourney .

Why financing matters so much for foreign buyers (2024–2025 context)

Singapore’s private home prices remain among Asia’s most resilient, backed by strict lending rules and strong demand from both locals and foreigners.[2] As a foreigner, financing is more complex because:

You usually need a larger cash downpayment (often 40% or more of the price)[4]
You must pay ABSD on any residential property, on top of BSD[7]
You cannot use CPF savings, even if you work in Singapore[4][5]
Banks apply stricter TDSR and may offer a lower LTV than for locals[1][5]

Handled properly, financing lets you safely leverage Singapore’s stable property market. Done poorly, it can strain your cash flow—especially if you are managing CNY–SGD exchange or other foreign currency risks for a Chinese yuan property purchase.

Key financing concepts for foreign buyers in Singapore

1. Loan-to-Value (LTV) limits for foreigners

The LTV limit is the maximum loan allowed as a percentage of the property price (or valuation, whichever is lower). For most foreign buyers, banks in Singapore cap LTV at around 75% in the best case, subject to your income, age, and loan tenure.[1][2]

However, for foreigners, banks often apply a more conservative LTV in practice, especially for:

High-value luxury condominiums (e.g. Orchard, Marina Bay)
Older leasehold properties with less than 60–70 years left on the lease[1]
Buyers with income fully sourced overseas or paid in foreign currency[5]

For example, it is common for a foreign investor buying a S$2.5 million District 9 condo to receive a 60–65% LTV instead of the theoretical maximum, meaning a S$875,000–S$1,000,000 downpayment before stamp duties.

2. Total Debt Servicing Ratio (TDSR)

The TDSR framework, set by MAS, limits your total monthly debt repayments to 60% of gross monthly income.[5] This includes:

All home loans (Singapore and overseas)
Car loans, personal loans, education loans
Credit card minimum payments

For foreigners, banks will typically:

Convert foreign income to SGD with a haircut for currency risk
Apply a stressed interest rate (usually at least 3.5% for residential property)
Include outstanding mortgages in your home country when assessing TDSR[5]

This means if your income is paid in RMB, USD, or EUR, the bank may assume a slightly lower effective income when calculating your borrowing limit.

3. Stamp duties: BSD and ABSD for foreigners

All buyers pay Buyer’s Stamp Duty (BSD) on a sliding scale based on the property price. In addition, most foreigners must pay Additional Buyer’s Stamp Duty (ABSD) on any residential property, on top of BSD.[7]

IRAS regularly updates ABSD rates; foreigners should always verify the latest rates on the official IRAS website before committing.[7] For an in-depth explanation and worked examples, see: ABSD Stamp Duty Calculator & Guide 2025 | Homejourney .

Importantly, ABSD is payable in cash (or CPF for eligible locals), so foreign buyers must plan their liquidity carefully together with their home loan.

Main financing options for foreign buyers

1. Local Singapore bank home loans

For a foreign buyer, the most common option is a housing loan from a local bank such as DBS, OCBC, or UOB.[2] There are two main structures:

Fixed-rate loans – Interest is fixed for an initial lock-in period, usually 2–5 years, then reverts to a floating rate.[1][2]
Floating-rate (variable) loans – Pegged to SORA (Singapore Overnight Rate Average) plus a spread, so monthly payments move with interest rates.[2]

As at 2025, many owner-occupier home loans in Singapore are in the 2.5%–2.75% p.a. range, with investment loans sometimes priced slightly higher.[2] Always check current offers on Homejourney’s bank rates comparison tool: Bank Rates .

Example: Foreign buyer financing a S$2 million condo

Assume a foreign buyer purchasing a new S$2,000,000 freehold condo near Great World MRT for investment:

Bank LTV approved: 65% – loan of S$1,300,000
Cash downpayment: S$700,000 (35%)
BSD + ABSD: significant additional cash outlay to be budgeted[7]
Tenure: 25–30 years, subject to age and TDSR[1][2]

The buyer must show sufficient documented income (e.g., overseas tax returns, employment contract, bank statements) to pass TDSR, and be prepared for future rate hikes after any fixed-rate period expires.[1][2]

2. International / home-country bank loans

Some foreign buyers choose to borrow from a bank in their home country, especially when the bank offers:

Better familiarity with their income and assets
Preferential rates for premium banking clients
Loans denominated in their home currency (e.g., RMB, USD)

However, two key points:

The property is in Singapore, so the security and legal enforcement can be more complex
IRAS, URA and MAS rules (e.g., ABSD, TDSR by local banks) still apply to you as an owner, even if your main loan is overseas[5][7]

For many foreign buyers, a hybrid strategy works: maintain existing facilities with a home-country bank for liquidity, but use a Singapore bank loan secured against the Singapore property for clarity and simplicity.

3. Cash purchase (no financing)

Some high-net-worth foreigners choose to buy fully in cash, especially for units below S$2 million in city-fringe areas like Kallang, Queenstown or Pasir Panjang. While this avoids TDSR issues, you still pay BSD and ABSD as usual.[7]

Even if you have sufficient cash, a modest loan can help preserve flexibility and hedge inflation, as long as you remain well within conservative TDSR limits and are comfortable with interest rate risks.

CNY–SGD exchange, RMB property payment and currency risks

For many foreign buyers, especially from China, a key issue is currency conversion China — how to move and convert funds from CNY to SGD efficiently and safely for a Singapore property purchase.