Financing Options for Foreign Buyers in Singapore | Homejourney
Foreign buyers in Singapore, including UAE buyers and Dubai residents, can secure bank mortgages for eligible properties like condominiums, but face strict Loan-to-Value (LTV) limits of 75% for first-time purchases and high Additional Buyer's Stamp Duty (ABSD) of 60% in 2026.[1]
At Homejourney, we prioritize your safety by verifying financing details and market data to help you make confident decisions in a trusted environment. This cluster article dives into tactical financing strategies, linking back to our pillar guide on foreign property buying in Singapore for the full process.Step-by-Step Property Buying Process for Foreigners | Homejourney
Why Financing Matters for Foreign Buyers in 2026
Singapore's property market remains attractive for Emirati investors and Middle East Singapore property seekers due to stable yields and global connectivity. However, financing options for foreign buyers in Singapore are regulated by the Monetary Authority of Singapore (MAS) to ensure prudent lending.[1]
Foreigners cannot use Central Provident Fund (CPF) savings, unlike locals, increasing cash requirements. With ABSD at 60% on residential purchases, a S$2 million condo demands S$1.2 million in ABSD plus down payments, totaling over S$1.7 million upfront.[1] Homejourney's verified data helps you calculate needs accurately via our Bank Rates tool.
Key Eligibility and Limits for Foreign Mortgages
Foreigners on Employment Passes or similar visas qualify for loans from major banks like DBS, OCBC, UOB, HSBC, and Standard Chartered, which have expat desks.[1]
- LTV Ratio: Up to 75% for first property if tenure ≤30 years or age <65; drops to 55% for longer tenures.[1]
- Total Debt Servicing Ratio (TDSR): Monthly installments ≤60% of gross income at 4% stress rate. For S$1.5M loan over 25 years, expect ~S$7,900/month, needing S$14,400+ income.[1]
- Minimum Income: Typically S$10,000+ monthly, verified via payslips, tax returns.[1]
Private lenders offer alternatives but at higher rates, basing approval on property collateral.[3] Always check Homejourney's Projects for current valuations.
ABSD and Cash Outlay Breakdown
ABSD (60%) is payable within 14 days of Option to Purchase (OTP).[1] For a S$2M condo:
| Item | Amount (S$) |
|---|---|
| ABSD (60%) | 1,200,000 |
| Down Payment (25% at 75% LTV) | 500,000 |
| Buyer's Stamp Duty (BSD) | ~70,000 |
| Legal/Fees | 10,000-20,000 |
| Total Upfront | ~1.78M |
Use our ABSD Stamp Duty Calculator & Guide 2026 | Homejourney for precise calculations.
Loan Types and Rates in 2026
Most loans reference 3-month Compounded SORA + spread (0.70% initial, reverting to 1.2-1.5%). Fixed rates: 2.8-3.2% for 2-3 years.[1]
- Floating SORA Packages: Lower initial rates, ideal for Dubai resident property investors expecting rate drops.
- Fixed Packages: Payment stability for conservative Emirati investors.
- Refinancing: Possible post-purchase if equity builds.
Compare via Homejourney's Mortgage Rates . International banks suit complex incomes (e.g., UAE expats).[1]
Step-by-Step Financing Process
Follow these actionable steps for smooth approval:
- Assess Eligibility: Gather passport, EP, 6 months' payslips, tax assessments, bank statements.[1]
- Get In-Principle Approval (IPA): Apply to 2-3 banks; valid 30 days, takes 3-5 days.[1][5]
- Property Hunt: Use Homejourney Property Search for condos. See eligible types in Types of Properties Foreigners Can Buy in Singapore | Homejourney .
- Exercise OTP: Pay 5% deposit; trigger ABSD.[1]
- Valuation & Formal Offer: Bank valuates; sign if matches price.[1]
- Completion: Pay balance, register mortgage (3-6 months total).Step-by-Step Property Buying Process for Foreigners | Homejourney
Insider tip: For UAE buyer Singapore deals, HSBC's expat team processes multi-currency faster—start here if Dubai-based.[1]
Common Mistakes and How to Avoid Them
Avoid these pitfalls based on real cases:
- Underestimating ABSD: A Dubai investor forgot 60% hit, scrambling for funds post-OTP.[1] Solution: Budget via Homejourney tools.
- Single Bank Reliance: Rates vary; shop DBS/OCBC vs. HSBC.[1]
- Ignoring TDSR: Variable UAE income fails stress tests. Stabilize with 12-month averages.[1]
- Valuation Shortfall: Low valuation means cash top-up; choose URA-recognized valuers.[1]
Post-purchase, maintain via Aircon Services for rental yield optimization.
Special Considerations for UAE and Middle East Buyers
UAE buyers Singapore benefit from strong SGD-AED ties. HSBC/Standard Chartered handle remittance seamlessly. For Dubai resident property investors, leverage SORA's stability vs. volatile UAE rates. UAE & Dubai Residents Buying Property in Singapore: Homejourney Guide covers tailored advice.
Disclaimer: This is general info; consult lawyers/banks. Rates as of 2026 per MAS.[1] Homejourney verifies data for trust.
FAQ: Financing Options for Foreign Buyers in Singapore
Can foreigners get mortgages in Singapore?
Yes, up to 75% LTV from local banks, subject to TDSR and income proof.[1][3]
What is the ABSD for foreigners in 2026?
60% of purchase price/valuation, payable within 14 days.[1]
How much down payment for foreign buyers?
At least 25% cash (no CPF), plus ABSD/BSD.[1][5]
Best banks for UAE buyers?
HSBC, Standard Chartered for expat/multi-currency needs.[1]
Timeline for loan approval?
IPA: 3-5 days; full: 1-2 weeks post-OTP.[1]
Ready to explore financing options for foreign buyers in Singapore? Start with Homejourney's Property Search and Bank Rates for safe, verified next steps. Link back to our pillar: Foreigners Buying Property in Singapore: Legal Process Guide 2026 | Homejourney .
