Financing options for foreign buyers in Singapore mainly revolve around Singapore bank home loans, international/private bank financing, and bridging or alternative loans, with strict rules on Loan-to-Value (LTV), Total Debt Servicing Ratio (TDSR), and Additional Buyer’s Stamp Duty (ABSD). As a foreigner, you can usually borrow up to around 75% of the purchase price from local banks for your first housing loan, subject to income assessment and property type, while funding the balance and the 60% ABSD entirely in cash or overseas funds.[1][3][6]
This cluster guide fits into Homejourney’s broader foreign buyer pillar on "Foreigners Buying Property in Singapore", complementing step-by-step buying guides and ABSD-focused articles such as Step-by-Step Property Buying Process for Foreigners | Homejourney , Is Singapore Property Worth Buying with 60% ABSD? Homejourney’s 2025 Guide , and Types of Properties Foreigners Can Buy in Singapore | Homejourney . Here, we zoom in specifically on financing options, how banks assess foreign borrowers, and how to decide if paying 60% ABSD is worth it for your investment strategy.
1. Overview: How Foreign Buyers Finance Property in Singapore
In practice, most foreign buyers I’ve advised in areas like River Valley, Orchard, and East Coast rely on three main financing routes:
- Local bank housing loans from major Singapore banks, pegged to SORA or fixed packages.[2][3]
- International/private bank financing (often for high-net-worth clients buying prime CCR units or landed homes).[5]
- Bridging or private lenders for short-term funding or complex cases (e.g., offshore income, multiple overseas properties).[1]
Unlike Singaporeans, foreigners:
- Cannot use CPF savings for downpayment or monthly instalments.[6]
- Face higher cash downpayments due to LTV limits and stricter risk assessment.[2][3]
- Pay 60% ABSD for residential property unless exempt under specific Free Trade Agreements (FTA) or holding certain citizenships.
Homejourney’s role is to give you transparent, verified information, including realistic cost breakdowns and bank rules, and then guide you safely to bank rate comparisons via Bank Rates and curated project insights via Projects Directory .
2. Key Financing Concepts for Foreign Buyers (Explained Simply)
2.1 Loan-to-Value (LTV) Limits for Foreigners
LTV is the percentage of the property price or value that a bank will lend you. The rest must be paid in cash (and for Singaporeans/PRs, sometimes CPF). For foreigners, typical LTV guidelines at Singapore banks are:
- Up to 75% LTV for your first housing loan, if the loan tenure is within MAS guidelines and your age fits within limits.[1][3]
- Lower LTV (45% or 35%) if you already have one or more existing housing loans or if tenures are long.[1][3]
- Further reductions depending on bank credit assessment, property type (e.g., very old leasehold), or irregular income.[3]
For example, for a S$2.5 million freehold condo in River Valley, a first-time foreign buyer might secure 75% financing (~S$1.875 million), with S$625,000 cash down plus Buyer’s Stamp Duty and 60% ABSD on top.
2.2 Total Debt Servicing Ratio (TDSR)
TDSR caps your total monthly debt obligations (including the new property loan) at a fixed percentage of your gross monthly income. MAS rules apply equally to foreigners and locals, though some private lenders for accredited investors may structure loans differently.[1]
In practice, banks convert foreign currency income into SGD at a conservative rate and apply haircuts (e.g., 20–30%) to variable or overseas income. This reduces your qualifying income and therefore your maximum loan.
2.3 Additional Buyer’s Stamp Duty (ABSD) – 60% for Foreigners
Foreign buyers of residential property generally pay 60% ABSD, on top of Buyer’s Stamp Duty, payable within 14 days of exercising the Option to Purchase. Singapore has FTA carve-outs granting Singaporean-equivalent ABSD treatment for some nationalities, so check IRAS or seek tax advice for your specific citizenship.[6]
For a deeper breakdown and live calculations, Homejourney’s dedicated ABSD content at ABSD Stamp Duty Calculator & Guide 2025: Homejourney Singapore helps you estimate ABSD in seconds, while ABSD for Taiwanese Citizens: 60% Stamp Duty Guide | Homejourney focuses on Taiwanese citizens facing 60% ABSD.
3. Main Financing Options for Foreign Buyers
3.1 Local Bank Home Loans (Most Common Route)
Most foreign buyers in areas like Newton, Novena, and the CBD finance via Singapore banks, which offer:
- Floating SORA-pegged packages, revising periodically based on the Singapore Overnight Rate Average.[2][3]
- Short fixed-rate packages (e.g., 2–5 years) that later convert to floating, not permanent fixed rates.[3]
As of 2025, average mortgage rates in Singapore are about 2.5%–2.75%, though this fluctuates with SORA and bank promotions.[2] Banks will typically:
- Assess your income (local or overseas), tax returns, and employment history.[1][2]
- Check your credit record, including international bureau data where possible.[1]
- Apply LTV and TDSR caps in line with MAS rules.[1][3]
Insider tip: if you’re working in Singapore on an EP or S Pass and receiving salary in SGD, some banks can be more generous on LTV than if all your income is purely overseas, as they see you as an onshore client with local credit footprint.
3.2 International / Private Bank Financing
Private and international banks (such as private banking arms of local banks or global names like HSBC Premier) provide more bespoke solutions for high-net-worth foreign buyers.[5]
- Minimum loan sizes can start from S$1 million or more for premier or private banking packages.[5]
- May allow cross-collateralisation with overseas assets or investment portfolios.
- Can structure loans in different currencies, which adds FX risk but may align with your income.[4][5]
In practice, many foreign investors purchasing luxury units in Orchard Boulevard or Marina Bay choose these relationships for integrated wealth management and sometimes more flexible underwriting (though often at a pricing premium or with higher AUM requirements).
3.3 Bridging Loans and Alternative Lenders
Some foreign buyers use bridging loans or private funders, especially when:
- They are in between selling an overseas property and buying in Singapore.
- They have complex income structures (e.g., business owners, multiple jurisdictions).
- They are accredited investors able to tap private lenders with more flexible TDSR treatment.[1]
Private funders may rely more heavily on the property collateral and less on standard TDSR, but this usually comes with:
- Higher interest rates and shorter tenures (e.g., 3–18 months).[1]
- Stricter conditions and legal fees.
Given Homejourney’s commitment to user safety, we strongly recommend seeking independent legal and financial advice before using non-bank or private funding structures.
4. Practical Step-by-Step Financing Process
4.1 Before You Shortlist Properties
- Define your budget including ABSD. Use Homejourney’s ABSD guide at ABSD Stamp Duty Calculator & Guide 2025: Homejourney Singapore to model 60% ABSD scenarios, then factor in BSD, legal fees, and renovation.
- Check indicative bank rates. Visit Bank Rates to see current floating and fixed packages from multiple banks.
- Get In-Principle Approval (IPA). Banks can usually process an IPA within a few working days, setting your maximum loan amount and tenure.[1]
