For foreign buyers, the main financing options in Singapore are local bank mortgages, international/overseas loans, and short-term bridging or equity loans, combined with careful planning for stamp duties like ABSD and BSD. Because foreigners cannot use CPF and face stricter Loan-to-Value (LTV) limits and higher Additional Buyer’s Stamp Duty (ABSD), you typically need at least 25–50% cash downpayment and must structure your financing safely with verified banks and professional advice.[1][3][6]
This guide zooms into Financing Options for Foreign Buyers in Singapore, as part of Homejourney’s broader foreign buyer series alongside topics like property types and the step-by-step process for foreigners Types of Properties Foreigners Can Buy in Singapore | Homejourney Guide Step-by-Step Property Buying Process for Foreigners | Homejourney Guide . If you are a first-time foreign buyer, an investor, or a Singaporean co-buying with a foreign spouse, understanding your safe financing limits and ABSD exposure is just as important as choosing the right condo.
Key Financing Concepts for Foreign Buyers in Singapore
Foreign buyers often hear a lot of jargon in Singapore: LTV, TDSR, BSD, ABSD, ABSD Taiwan, and more. Homejourney’s approach is to break these into clear, practical concepts so you can run your numbers confidently before you even schedule a viewing via our property search tool Property Search .
Loan-to-Value (LTV) Limits for Foreigners
In Singapore, LTV is the maximum loan a bank will give as a percentage of the lower of the property price or value. For foreigners, banks generally follow the same MAS LTV framework as for locals, but in practice may be more conservative, especially if your income is overseas.[2][6]
- If you have no existing housing loan, typical maximum LTV is up to about 75% with local banks, depending on age, tenure, and income profile.[2][6]
- If you already have existing property loans, your effective LTV can fall to around 45% or 35%.[6]
- Some banks apply stricter internal caps for foreigners, or lower LTV for older leasehold properties or unusual assets.[2]
In real life, foreigners planning to buy a mass-market condo in areas like Pasir Ris or Tampines will often be quoted LTV around 60–70% if their income is fully overseas, even if MAS rules permit 75%. It is wise to budget assuming a slightly lower LTV than the maximum and use Homejourney’s bank rate comparison tool Mortgage Rates to test multiple scenarios.
TDSR and MSR: How Much You Can Borrow
Total Debt Servicing Ratio (TDSR) limits your monthly total debt obligations (including housing loans, car loans, credit cards) to a percentage of your gross monthly income. MAS currently caps TDSR at 55% for property loans, and this applies to foreigners as well.[3]
The Mortgage Servicing Ratio (MSR) applies to HDB flats and Executive Condominiums (ECs) but, in practice, most foreigners cannot buy HDB and often cannot buy new ECs, so MSR usually does not apply.[3] Almost all foreign buyers will be using bank loans on private condominiums or approved landed properties.
Stamp Duties: BSD, ABSD, and Taiwanese ABSD Rate
When you buy any Singapore residential property, you pay:
- Buyer’s Stamp Duty (BSD) – tiered tax based on property price.
- Additional Buyer’s Stamp Duty (ABSD) – varies by residency and nationality.
After the April 2023 cooling measures, most foreigners pay an ABSD rate of 60% on residential property purchases.[1] This heavy rate must be paid in cash (or cashier’s order) within 14 days of exercising the Option to Purchase and cannot be financed by a bank loan.[1]
This is especially critical for Taiwanese buyers. Under current rules, citizens of the Republic of China (Taiwan) are treated as foreign buyers for ABSD purposes, so the Taiwanese ABSD rate is effectively the standard foreigner rate of 60% on the purchase price. Many Taiwanese investors casually refer to this as ABSD Taiwan or ask about Taiwan stamp duty Singapore or ROC buyer stamp duty; from IRAS’ perspective, it is simply the foreigner ABSD tier, separate from BSD.
There are exceptions. Citizens and PRs of certain FTA partner countries (for example, the US, Norway, Switzerland, Iceland and Liechtenstein) enjoy the same stamp duty treatment as Singapore citizens and thus do not pay 60% ABSD if they qualify.[5] For a deeper breakdown of all ABSD tiers and remissions, refer to Homejourney’s dedicated ABSD guide and Taiwanese ABSD explainer ABSD for Taiwanese Citizens: 60% Stamp Duty Guide | Homejourney .
Core Financing Options for Foreign Buyers
For safety and transparency, Homejourney recommends that foreign buyers work only with MAs-regulated local banks and reputable international lenders. This ensures your financing is fully compliant and your funds are protected.
1. Local Singapore Bank Mortgages
Most foreign buyers in 2024–2025 use a local bank mortgage from major Singapore banks. These loans are usually pegged to the Singapore Overnight Rate Average (SORA) or bank fixed deposit rates, with average mortgage interest around 2.5–2.75% in 2025.[3]
- Typical interest rate: ~2.5–2.75% p.a. floating, or fixed for 2–5 years before reverting to a floating package.[2][3]
- Tenure: Up to 30 years for foreigners is common, subject to age and income.
- Downpayment: At least 25% of property value, but banks may require more for foreigners or special cases.[1][3]
- Cash requirement: Unlike Singapore citizens, foreigners cannot use CPF, so your entire downpayment and all stamp duties must be funded in cash.[5]
From experience walking clients through showflats from Punggol to West Coast, the practical difference between a 60% and 70% LTV is huge. On a S$2 million CCR condo, that 10% band is S$200,000 extra in cash. Before even booking a VVIP preview for a new launch you find through Homejourney’s projects directory Projects Directory , it is crucial to confirm your personal LTV with at least one bank and stress-test against higher interest rates.
Documents Foreign Buyers Typically Need
- Passport and employment pass (or proof of overseas residency/income).
- Latest 3–6 months’ payslips and employment letter.
- Latest 6–12 months’ bank statements showing salary credits.
- Income tax assessment (e.g., IRAS Notice of Assessment if you pay tax in Singapore, or overseas tax documents).
- Existing loan statements and credit cards for TDSR assessment.
Insider tip: foreign buyers working in CBD offices around Raffles Place or Tanjong Pagar often rush from bank meetings to showflat previews. If you are only in Singapore for a short trip, arrange early in the week to meet at your bank’s branch and secure an approval-in-principle (AIP) before serious viewings. This avoids disappointment when a unit you like at River Valley or Novena is snapped up while your loan is still unapproved.
2. International & Offshore Loans
Some foreign buyers prefer to borrow from banks in their home country or from international private banks with a Singapore presence. This is more common for high-net-worth individuals placing assets under management.
- Pros: Potentially more flexible income documentation, ability to borrow in your home currency, relationship-based pricing.
- Cons: Currency risk (if your income and property are in different currencies), more complex legal documentation, and sometimes lower LTV.
You should discuss foreign exchange risk carefully with the bank. A Taiwanese buyer borrowing in TWD to buy a Singapore condo priced in SGD, for instance, must be prepared for currency swings that can effectively increase repayments. Homejourney strongly recommends getting independent financial advice before using complex cross-border structures.
3. Bridging Loans & Equity Term Loans
For foreigners upgrading or re-allocating their portfolio (for example, selling a condo in Novena to buy a larger unit in Bukit Timah), bridging loans
