Financing options for foreign buyers in Singapore are mainly Singapore bank home loans, overseas financing from your home country, and cash or equity-based structures, with loan-to-value (LTV) for foreigners typically capped around 55–75% and higher cash downpayments than locals.[1][3][5] As a foreigner, you must also plan for high Additional Buyer’s Stamp Duty (ABSD), unless you qualify for special treatment under schemes like the EFTA FTA Singapore framework for certain nationalities, where ABSD remission or reduced rates may apply.[2][7]
This cluster guide sits under Homejourney’s main pillar on foreign ownership – see the full overview in the Step-by-Step Property Buying Process for Foreigners | Homejourney Singapore Step-by-Step Property Buying Process for Foreigners | Homejourney Singapore . Here, we go deep into just one critical piece: how foreigners can realistically finance a Singapore property safely and sustainably in 2025.
Why financing for foreign buyers in Singapore works differently
On the ground, when you sit down with a banker at Raffles Place or along Orchard Road, you quickly realise that foreign buyers face tighter limits than Singapore Citizens and PRs. Banks focus heavily on:
- Your residency and employment status (expat working in Singapore vs overseas-based investor)
- Income source and currency stability
- Existing global debts
- Property type and remaining lease[3]
As of 2025, most local banks still cap maximum LTV around 75% for strong profiles, but foreigners often see lower practical LTVs (around 55–70%) depending on risk and documentation.[1][3][5] Foreigners also cannot use CPF, so every dollar of downpayment and monthly instalments must come from cash or overseas funds.[5][7]
In the current market, with mortgage rates around 2.5–2.75% pegged mainly to SORA (Singapore Overnight Rate Average), financing remains manageable but no longer ultra-cheap, so prudent stress-testing is essential.[5] Homejourney’s role is to help you see the full picture upfront so you avoid over-leverage and unpleasant surprises.
Key financing terms foreign buyers must understand
Before running numbers, it helps to clarify a few Singapore-specific terms you’ll hear in bank meetings and from your lawyer:
- Loan-to-Value (LTV): Maximum percentage of the property price or valuation (whichever is lower) that the bank will lend. For private homes, LTV can be up to 75% in ideal cases, but often lower for foreigners.[3][5]
- TDSR (Total Debt Servicing Ratio): MAS rule that caps your total monthly debt repayments (including car loans, credit cards, overseas mortgages) to a fixed percentage of your gross monthly income. This applies to foreigners as well and directly limits how much loan you can take.
- BSD (Buyer’s Stamp Duty): A progressive tax payable on all property purchases in Singapore.
- ABSD (Additional Buyer’s Stamp Duty): Extra tax on property purchases. As of April 2023, foreigners generally face 60% ABSD on residential property, which must be paid upfront and cannot be financed with a bank loan.[2]
- SORA-based loans: Floating-rate packages pegged to the SORA benchmark, now the main reference for Singapore mortgage rates.[5]
For a detailed breakdown of BSD and ABSD slabs and examples, refer to Homejourney’s ABSD Stamp Duty Calculator & Guide 2025 | Homejourney ABSD Stamp Duty Calculator & Guide 2025 | Homejourney .
Main financing options for foreign buyers
1. Local Singapore bank home loans
For most foreign buyers, the primary route is a mortgage from a Singapore bank. There is no special legal barrier to foreigners getting a mortgage, but documentation and risk assessment are stricter.[5]
Typical features in 2025 include:
- LTV: Up to about 75% for strong profiles; often 55–70% in practice for foreigners, subject to age, income, and loan tenure.[1][3][5]
- Rates: Around 2.5–2.75% p.a. for SORA-linked packages, with fixed-rate periods often limited to 2–5 years before reverting to floating.[3][5]
- Tenure: Commonly up to 30 years, but subject to age + tenure not exceeding 65–75, and possibly shorter for older borrowers.[3]
- Property conditions: Banks are cautious with older leasehold properties; many will not lend if remaining lease is 30 years or less.[3]
Insider tip: In practice, bankers in CBD branches (e.g. around Raffles Place and Marina Bay) are more used to handling complex expat profiles with overseas income. It’s worth booking an appointment and bringing all income proof for at least the last 12 months.
Before you visit a bank, you can use Homejourney’s financing tools and compare packages on our bank rates page Bank Rates or mortgage-rates page Mortgage Rates to set a realistic budget.
2. Overseas home country financing
Some foreign buyers, especially from Europe or the US, explore financing from banks in their home country, secured against:
- Existing properties back home (equity release / refinancing)
- Personal credit facilities or investment-backed loans
This route can offer familiarity and potentially better rates, but has trade-offs:
- Exposure to FX risk between SGD and your home currency
- Slower approval timelines when coordinating across time zones
- Possible difficulty aligning loan disbursement with Singapore completion deadlines
From experience with buyers who wired funds from Europe to complete a new condo in the East Coast, the key is to lock in FX rates early and ensure your lawyer is comfortable working with foreign-bank disbursements.
3. Cash purchases and equity-based strategies
Some foreigners, particularly ultra-high-net-worth individuals buying in districts like Orchard, Nassim, or Sentosa Cove, opt to buy in cash. Even in these cases, Homejourney strongly recommends proper cashflow planning due to ABSD and ongoing costs (maintenance fees, taxes, renovation, aircon servicing).
Others use:
- Equity release from overseas properties
- Corporate or trust structures (subject to MAS and IRAS rules)
These can be useful but introduce legal and tax complexity. Always seek independent legal and tax advice; Homejourney does not provide personalised tax structuring advice.
LTV, downpayment and cash requirements for foreigners
Foreign buyers face higher cash requirements at every stage:
- Minimum downpayment: Commonly at least 25% of the property price in cash for those who qualify for local housing loans; if not eligible for a bank loan, the required cash may go up to 50%.[2][5]
- No CPF usage: Foreigners cannot tap Singapore CPF savings, so the entire downpayment must be in cash.[7]
- ABSD in cash: ABSD must be paid upfront; it cannot be financed by the mortgage and is often the largest single cash outlay.[2]
On the ground, a typical foreign buyer purchasing a S$2 million new condo unit in River Valley in 2025 might need:
- Downpayment (25–45% depending on LTV): S$500,000–S$900,000 cash
- BSD: Progressive, payable in cash
- ABSD (if at 60%): Up to S$1.2 million, payable upfront
Use the Homejourney ABSD Stamp Duty Calculator & Guide 2025 Singapore | Homejourney ABSD Stamp Duty Calculator & Guide 2025 Singapore | Homejourney to run your numbers before placing any booking fee.
EFTA FTA Singapore: EFTA property benefits and ABSD treatment
One of the most important nuances for foreign buyers is how European free trade agreements interact with Singapore’s stamp duty rules. Under the EFTA FTA Singapore framework, certain nationals are accorded the same stamp duty treatment as Singapore Citizens.[7]
As of 2025, citizens of Switzerland, Liechtenstein, Norway, Iceland and the United States enjoy the same BSD and ABSD treatment as Singapore Citizens for residential property purchases.[7] This effectively means:
- They do not
References
