Financing Options for Foreign Buyers in Singapore | Homejourney Guide

Financing options for foreign buyers in Singapore mainly consist of bank home loans from local and international banks, typically up to around 55%–75% Loan-to-Value (LTV) depending on your profile, with higher cash downpayments and stricter income assessment than for Singapore Citizens.[1][2][3][4] As a foreign investor, you cannot use CPF to fund your purchase, and you must also budget for Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD), which significantly affect your overall return on investment (ROI) as a foreign buyer in Singapore.[6]

This focused guide is part of Homejourney’s Foreign Buyer series and supports our main pillar, "Singapore Property Investment Strategies for Foreign Investors" Singapore Property Investment Strategies for Foreign Investors | Homejourney Gui... . Here, we go deep into financing options for foreign buyers in Singapore, so you can structure your property investment foreigner strategy safely, confidently and in line with current Monetary Authority of Singapore (MAS) rules.

What Financing Options Do Foreign Buyers Have in Singapore?

Foreigners buying private property in Singapore generally rely on four broad financing routes:

Local bank home loans (most common; SGD‑denominated, SORA-pegged)[3][4]
International or home-country bank loans (use foreign banks that also lend on Singapore property)
Leveraging assets / equity financing (e.g. pledging financial assets for better terms, or equity term loans on existing property)[2]
Short-term / bridging facilities to match cashflow between sale and purchase[7]

In practice, most foreign buyers I’ve met in areas like Orchard, River Valley and Marina Bay end up using a local bank mortgage because of:

Transparent MAS rules on LTV and Total Debt Servicing Ratio (TDSR)
Competitive interest rates (often around 2.5%–2.75% in recent years, pegged to SORA)[4]
Clear documentation requirements and predictable approval timelines

Homejourney’s Bank Rates page helps you monitor current home loan packages in one trusted place, without needing to jump between bank websites.

Key Financing Rules Foreign Buyers Must Understand

1. Loan-to-Value (LTV) Limits for Foreign Buyers

Singapore does not have a separate LTV table just for foreigners, but in reality banks often apply a more conservative LTV band – typically around 55% to 75% of the purchase price or market value, whichever is lower, subject to your income, age and existing loans.[1][2][3][4] MAS sets the overall LTV cap framework, and banks can tighten further based on their risk assessment.

From local bank examples and MAS guidelines:

For a first housing loan, some banks advertise up to 75% LTV for foreigners with strong onshore income and credit profiles.[2][3]
LTV can drop to around 45%–55% if you already have existing housing loans, if your income is fully overseas, or if the property is older leasehold or higher risk.[1][3][4]
If the loan tenure exceeds 30 years or loan tenure plus your age goes beyond 65, LTV is typically reduced further.[3]

On the ground, clients buying a two‑bedroom condo in District 9 or 10 (e.g. around River Valley or Bukit Timah) sometimes expect 75% financing, but end up with 60%–65% because their income is fully overseas or variable bonus‑heavy. Planning for a more conservative 55%–60% LTV is safer for foreign investor strategy.

2. TDSR: How Much of Your Income Can Go to Debt?

MAS’s Total Debt Servicing Ratio (TDSR) limits your total monthly debt obligations (including the new property loan) to a fixed percentage of your gross monthly income. While the exact percentage is set by MAS, banks must also apply a minimum stress-test interest rate when calculating your TDSR to ensure you can still repay even if interest rates rise.[4]

For foreign buyers, banks

Discount or haircut variable income or overseas income
Include all existing debts – e.g. overseas mortgages, car loans, personal loans, and even some business loans tied to you personally
Stress-test your loan at a higher notional rate than the headline package rate

If you are self-employed and paid in USD or CNY, it is common to see your usable income cut down after bank haircuts and exchange rate buffers. Homejourney’s CNY to SGD Exchange Guide for Singapore Property Buyers | Homejourney is especially useful if you are bringing in funds from CNY, as FX rates directly affect your real borrowing capacity.

3. CPF Usage Rules for Foreign Buyers

Foreigners cannot use CPF to finance property purchases in Singapore or to service the monthly instalments.[6][8] Only Singapore Citizens and Permanent Residents may use their CPF Ordinary Account (OA) for eligible properties under CPF Board rules.

This means as a foreign buyer:

Your entire downpayment (typically 25%–45% of the purchase price) must be in cash.[4][6]
All monthly loan repayments must also be funded from cash or overseas income.

For high-value purchases along Orchard Boulevard or Marina Bay where units easily exceed SGD 3–4 million, this cash requirement alone becomes a major strategic decision in your Singapore investment foreign plan.

4. Stamp Duties: BSD and ABSD for Foreigners

When you buy residential property in Singapore, you must pay:

Buyer’s Stamp Duty (BSD) – a tiered tax on the purchase price or market value, whichever is higher, for all buyers.
Additional Buyer’s Stamp Duty (ABSD) – an extra percentage on top of BSD. Foreigners are subject to a significantly higher ABSD rate than Singapore Citizens, unless they are eligible for specific nationality-based reliefs.[6]

ABSD is one of the biggest drivers of ROI foreign buyer calculations. For an in-depth breakdown of current BSD and ABSD rates, worked examples and calculators, refer to Homejourney’s dedicated guide: ABSD Stamp Duty Calculator & Guide 2025 | Homejourney .

These stamp duties are payable in cash and cannot be financed by your bank loan. This is a common surprise for first-time foreign investors who only plan for the downpayment and overlook ABSD in their cash flow.

Main Financing Options in Detail

1. Local Bank Home Loans (SORA-Based)

Most foreign purchasers use local banks such as DBS, OCBC, UOB and foreign banks that operate in Singapore branches. According to recent guides, home loans in Singapore usually offer either floating packages pegged to SORA, or fixed-rate packages that are only fixed for 2–5 years before converting to floating.[3][4]

Key features for foreign buyers:

Loan currencies: Primarily SGD; some banks may offer USD or other currencies for select clients.[5]
Interest type: SORA-pegged floating or short fixed periods; no truly perpetual fixed home loans in Singapore.[3]
Maximum tenure: Often up to 30 years, but capped by your age – banks may reduce tenure if loan tenure + age exceeds 65.[3]
LTV: Up to about 75% if this is your first housing loan and you have strong income documentation, otherwise lower.[2][3][4]

Insider tip: When you walk out of Raffles Place MRT Exit I during lunch hour and see bankers queuing at the Lau Pa Sat side stalls, that’s usually when rates chatter is loudest. But instead of relying on rumours, always check verified rates through trusted tools like Homejourney’s Bank Rates page and MAS publications.