Financing Options for Foreign Buyers in Singapore: Your 2026 Guide
Foreign buyers in Singapore can secure bank mortgages up to 75% Loan-to-Value (LTV) for their first property, subject to Total Debt Servicing Ratio (TDSR) checks and minimum 25% cash down payments, though rates vary by lender and borrower profile.[2][3][4]
At Homejourney, we prioritize your safety by verifying the latest regulations from MAS and URA, helping you navigate financing options for foreign buyers in Singapore with transparency. This cluster article dives deep into tactical financing strategies, linking back to our pillar guide on Step-by-Step Property Buying Process for Foreigners. Whether you're from Hong Kong or China, understand how ABSD vs BSD HK impacts your decision.
Why Financing Matters for Foreign Buyers in 2026
Singapore's property market remains resilient in 2026, with private home prices up 5-7% year-on-year per URA data. Foreigners face stricter rules than locals—no HDB access, higher ABSD at 60% for first private properties (up from 30% pre-2023), and LTV caps.[2]
Compare to Hong Kong: Singapore's ABSD (60%) dwarfs HK's BSD (up to 15% for non-residents), but SG offers stable appreciation and no capital gains tax. Chinese buyers prefer SG for Singapore vs Hong Kong property due to lower volatility.[3]
Homejourney's verified data ensures you avoid pitfalls, unlike unverified listings elsewhere. Check our projects directory for real-time pricing in areas like Orchard or Sentosa Cove.
Key Financing Options Available
All major Singapore banks (DBS, OCBC, UOB) offer mortgages to foreigners for private condos, landed homes (with approval), and executive condos after MOP. Private lenders provide alternatives for those with weaker credit.[2][3]
- Bank Mortgages: Up to 75% LTV for first-time buyers (no prior loans), dropping to 45% with one existing loan, 35% for two.[2]
- Private Bridging Loans: 60-80% LTV, short-term (weeks), ideal for equity release on landed properties worth S$7M+.[1][8]
- Accredited Investor Exemption: Bypass TDSR via MAS-licensed private funders if net worth exceeds S$2M.[3]
No CPF for foreigners, so full cash downpayment required: 5-25% upfront, rest via loan.[2][4] Use Homejourney's bank rates tool to compare live packages.
Loan-to-Value (LTV) and Downpayment Breakdown
| Scenario | Max LTV | Min Cash Downpayment |
|---|---|---|
| First property, no loans | 75% | 25% |
| One existing loan | 45% | 55% |
| Foreigners (general) | 55-75% | 25-45% |
Source: MAS guidelines 2026. Higher age/tenure reduces LTV.[2][4]
Step-by-Step Financing Process for Foreigners
Follow these actionable steps for a smooth application:
- Pre-Approval (1-2 weeks): Submit income proofs (6-month payslips, NOA, bank statements) via bank portals. Onshore foreigners need Credit Bureau Singapore score >1600.[2][3]
- Property Selection: Use Homejourney's property search for foreigner-eligible condos. See Types of Properties Foreigners Can Buy.
- OTP and Loan Offer: Secure Option to Purchase; banks issue Letter of Offer (valid 3 weeks).
- ABSD Payment: 60% on first buy—use our ABSD Calculator. Compare ABSD vs BSD HK: SG's higher but offset by yields.
- Completion (8-12 weeks): Pay downpayment; loan disburses at key collection.
Timeline: 2-4 months total. Insider tip: Apply pre-OTP for leverage in hot districts like D10 (Tanglin).[2]
Costs and Eligibility: What Foreigners Must Know
TDSR limits debt payments to 55% of income; foreigners often face 4-5% interest rates (vs 3% for locals).[2][4] Documents: Passport, employment pass, income verification, net worth statement for offshore buyers.
Chinese Buyer Comparison: In property investment HK SG, HK non-residents pay 15% BSD + 7.5% on second homes, but face vacancy taxes. SG's 60% ABSD deters flips, favoring long-term holds. Reference our Singapore vs Hong Kong Guide.
Hidden costs: Legal fees (S$2-3K), valuation (S$500), fire insurance. Total upfront: 65-85% for first buys.[2]
Common Mistakes and How Homejourney Protects You
Avoid: Underestimating ABSD (e.g., S$1.2M on S$2M condo), ignoring TDSR (rejections spike at 50%+ ratios), or using unverified agents. Real example: A HK investor overlooked LTV drop, paying 60% cash extra.[1][3]
- Red flag: Lenders promising >75% LTV—illegal per MAS.
- Tip: Verify via Homejourney's trusted network; we flag non-compliant deals.
Disclaimer: This is general info; consult licensed advisors. Homejourney verifies data for your confident decisions.
Decision Framework: Is Financing Right for You?
Weigh pros (leverage, tax-free gains) vs cons (high ABSD, LTV caps). Ideal if income >S$20K/month, targeting 4-6% yields in D21 (Upper Changi).
| Factor | Bank Loan | Private Loan |
|---|---|---|
| Speed | 4 weeks | 2 weeks |
| LTV Max | 75% | 80% |
| Rate | 3.5-5% | 6-9% |
FAQ: Financing Options for Foreign Buyers in Singapore
Can foreigners get 100% financing in Singapore?
No, minimum 25% cash downpayment required per MAS rules.[2][4]
What's the ABSD rate for my first Singapore property?
60% for foreigners in 2026, payable at purchase.[2]
How does Singapore financing compare to Hong Kong for Chinese buyers?
SG has higher ABSD (60% vs HK 15%) but better stability and no cooling measures like HK's vacancy tax.[3]
Do I need a Singapore credit score?
Yes for onshore; offshore need income proofs.[2][3]
Where to compare bank rates safely?
Use Homejourney's mortgage rates
