Financing Options for Foreign Buyers in Singapore | Homejourney
Foreign buyers in Singapore can finance properties through local bank loans with up to 75% Loan-to-Value (LTV) ratio for first-time purchases, though higher down payments and stricter terms apply compared to locals.
Homejourney prioritizes your safety by verifying the latest regulations from URA and MAS, ensuring you make informed decisions in a trusted environment.
Why Financing Matters for Foreign Buyers in 2025
Navigating financing options for foreign buyers in Singapore requires understanding LTV limits, Total Debt Servicing Ratio (TDSR), and Additional Buyer's Stamp Duty (ABSD). In 2025, rising interest rates around 2.5%-2.75% pegged to SORA make planning essential.[3]
This cluster article dives deep into tactical advice, linking back to our pillar guide on Step-by-Step Property Buying Process for Foreigners. Homejourney's transparent tools help you compare options securely.
Key Financing Restrictions for Foreigners
Foreigners face a maximum 75% LTV for new private residential purchases, meaning at least 25% cash down payment.[1][2] Refinancing allows up to 90% of property value or 100% of outstanding loan, whichever is lower.[1]
TDSR caps debt payments at 55% of gross income, and loans cannot exceed 30 years or age 65. HDB flats are off-limits; focus on condos or non-landed properties.[3][5]
- No CPF usage: Foreigners pay 100% cash down payments, unlike locals.[5]
- Leasehold limits: Banks avoid financing if under 30 years remaining.[2]
- No trust purchases: Properties held in trust for children ineligible.[2]
Homejourney's bank rates comparison verifies current LTV and TDSR for your profile.
Local Bank Loan Types Available
Singapore banks offer fixed, variable, and hybrid loans. Fixed rates lock for 2-5 years, then revert to floating SORA-based rates (avg. 2.5%-2.75% in 2025).[2][3]
Variable rates fluctuate with market; hybrids blend both for flexibility. Major banks like UOB and OCBC provide packages with min. S$500,000 loans.[1]
| Loan Type | Key Features | Foreigner LTV |
|---|---|---|
| Fixed | 2-5 years lock-in | Up to 75% |
| Variable | SORA-pegged | Up to 75% |
| Hybrid | Fixed + floating | Up to 75% |
Compare via Homejourney's verified mortgage rates tool for real-time insights.
Special Exemptions: Liechtenstein ABSD Benefits
Liechtenstein ABSD exemption under EFTA treats citizens like Singaporeans for stamp duties—no 60% ABSD on first purchases.[5] Liechtenstein property Singapore buyers enjoy 0% ABSD, same as locals, plus standard BSD.[9]
EFTA Liechtenstein nationals (Iceland, Liechtenstein, Norway, Switzerland) access this via IRAS rules. Pair with 75% LTV for optimal financing. See Homejourney's Liechtenstein Citizens’ Guide for details.
Step-by-Step Financing Process
- Check eligibility: Verify income, credit via bank pre-approval (1-2 weeks).
- Gather documents: Passport, employment pass, income proofs, 6 months bank statements.
- Apply for HOC/OTP: Secure property via Homejourney's property search.
- Submit loan app: Banks assess TDSR/LTV (2-4 weeks).
- Pay down payment: 25% cash + ABSD/BSD.
- Legal completion: 8-12 weeks total.
Insider tip: Apply loans post-OTP to lock rates; use Homejourney for verified projects in projects directory.
Costs Breakdown and Hidden Fees
Expect 25-55% down payment cash. ABSD: 60% for most foreigners (30% for PRs), waived/remitted for EFTA like Liechtenstein. BSD: 1-6% tiered.[9][5]
Other costs: Legal fees (S$2,000-5,000), valuation (S$500-1,500). Total upfront: 30-70% for foreigners. Use ABSD Calculator on Homejourney.
Common Mistakes and How to Avoid Them
- Underestimating TDSR: Example: S$10,000 monthly income limits loan to ~S$5,500 payments. Pre-assess via Homejourney tools.
- Ignoring lock-ins: 2-3 year penalties (1-1.5% of loan). Compare packages first.
- Overlooking ABSD: Liechtenstein buyers save millions—confirm EFTA status early.[5]
Real example: A foreigner in Orchard Road condo (S$2M) paid S$1.2M ABSD without exemption; EFTA saved it all.
Alternatives: Overseas Financing or Brokers
OCBC offers overseas loans, but for Singapore properties, local banks preferred. Brokers shop rates but Homejourney verifies independently for trust.[3][4]
No CPF; cash or remittance only. Post-purchase, maintain via aircon services.
FAQ: Financing Options for Foreign Buyers in Singapore
What is the max LTV for foreigners?
75% for first purchase, lower for subsequent or long tenures.[1][2]
Do Liechtenstein citizens get ABSD exemption?
Yes, under EFTA—no 60% ABSD, treated as locals.[5]
Current average rates?
2.5%-2.75% SORA-based in 2025.[3]
Can I finance HDB as foreigner?
No, only private properties.[3]
Down payment amount?
Min. 25% cash, up to 75% loan.[1][5]
Ready to explore? Start with Homejourney's property search and bank rates for safe, verified financing options. Link back to our pillar: Step-by-Step Guide for Foreigners. Homejourney ensures transparency—your trusted partner.
