Financing Options for Foreign Buyers in Singapore: 2026 Guide
Foreign buyers in Singapore can secure home loans from local banks with up to 75% Loan-to-Value (LTV) ratio for their first property, but must navigate high Additional Buyer's Stamp Duty (ABSD) of 60% and strict Total Debt Servicing Ratio (TDSR) thresholds.[1]
At Homejourney, we prioritize your safety by verifying all financing details to help you make confident decisions in Singapore's competitive market. This cluster article dives into tactical financing strategies, linking back to our comprehensive Step-by-Step Property Buying Process for Foreigners in Singapore 2026 | Homejour... ">Step-by-Step Property Buying Process for Foreigners pillar for the full journey.
Why Financing Matters for Foreign Buyers in 2026
Singapore's property market remains attractive for foreigners despite cooling measures like 60% ABSD on residential purchases, unchanged since April 2023.[1] High ABSD—S$1.2 million on a S$2 million condo—demands substantial upfront cash, making efficient financing critical.[1]
Banks like DBS, OCBC, UOB, HSBC, Citi, and Standard Chartered offer tailored mortgages for expats on Employment Passes, scrutinizing income stability via payslips and tax assessments.[1] Homejourney's Bank Rates ">bank rates comparison tool helps you shop securely without leaving our trusted platform.
Key Financing Rules for Foreigners
Foreign buyers face identical LTV limits to locals for private condos: 75% maximum if tenure ≤30 years or ends before age 65; drops to 55% otherwise.[1] No CPF usage is allowed, as it's reserved for Singapore properties only.[4]
- TDSR Limit: 55% of gross monthly income; stress-tested at 4% interest (e.g., S$14,400/month needed for S$7,900 instalment on S$1.5M loan).[1]
- MSR: Not applicable to foreigners without HDB eligibility.
- ABSD vs BSD: Foreigners pay 60% ABSD + 4-6% Buyer's Stamp Duty (BSD); payable within 14 days of Option to Purchase (OTP).[1]
Compare with Hong Kong: Singapore's ABSD (60%) dwarfs HK's BSD (up to 15% for non-residents), but SG offers higher LTV (75% vs HK's 50-70%) and stable SORA-linked rates.Singapore vs Hong Kong Property: Guide for Chinese Buyers | Homejourney
Loan Structures in 2026
Dominant packages tie to 3-month Compounded SORA (replaced SIBOR in 2024): floating spreads start at 0.70% for 2 years, reverting to 1.2-1.5%; fixed rates 2.8-3.2% for 2-3 years.[1]
| Package Type | Initial Rate | Best For |
|---|---|---|
| Floating SORA | SORA + 0.70% (2 yrs) | Rate optimizers |
| Fixed Rate | 2.8-3.2% (2-3 yrs) | Payment certainty |
Chinese buyers note: SG's financing edges HK's high-stress HIBOR environment for property investment.Singapore vs Hong Kong Property: Guide for Chinese Buyers | Homejourney
Step-by-Step Financing Process
- Pre-Approval (IPA): Submit payslips, employment contract, passport, tax returns. Valid 30 days; takes 3-5 days.[1]
- Property Search: Use Homejourney's Property Search ">property search for verified condos foreigners can buy.Private Condos vs Landed Properties: What Foreigners Can Buy in Singapore 2026
- OTP Exercise: Pay 5% deposit; trigger ABSD/BSD within 14 days.[1]
- Valuation & LO: Bank values property; lend on lower of price/valuation. Sign Letter of Offer.[1]
- Completion: 8-12 weeks; lawyer handles stamping via IRAS.
Insider tip: Secure IPA from 2-3 banks before viewing—agents prioritize financed buyers in hot spots like Orchard or Tanjong Pagar.
Cost Breakdown Example: S$2M Condo
| Item | Amount |
|---|---|
| ABSD (60%) | S$1.2M[1] |
| BSD (4-6%) | S$80K-S$120K |
| Downpayment (25% on S$2M) | S$500K[1] |
| Total Upfront | ~S$1.77M + fees |
Post-purchase, budget for maintenance via Aircon Services ">aircon services to protect your investment.
Common Mistakes and How to Avoid Them
- Underestimating ABSD: Use Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD calculator; real example: UAE buyer overlooked, faced 17% penalty.[1]
- Skipping Multiple IPAs: Rates vary; DBS/OCBC suit EP holders, HSBC for multi-currency.[1]
- Ignoring Valuation Risk: If valuer assesses S$1.9M on S$2M purchase, cover S$100K cash gap.[1]
Red flag: Agents pushing unverified loans—stick to Homejourney-verified data for safety.
Decision Framework: SG vs HK for Chinese Buyers
SG wins for leverage despite ABSD; ideal for long-term stability.Singapore vs Hong Kong Property: Guide for Chinese Buyers | Homejourney
FAQ: Financing for Foreign Buyers
Can foreigners get 75% LTV in Singapore?
Yes, for first private property if tenure conditions met; stress-tested at 4%.[1]
How much ABSD do foreigners pay in 2026?
60% of purchase price/valuation, due in 14 days.[1]
Which banks are best for expat mortgages?
DBS, OCBC, UOB for streamlined EP processing; HSBC for complex incomes.[1]
Can I use CPF for Singapore property as a foreigner?
No, CPF is unavailable.[4]
What's the IPA timeline?
3-5 business days with complete docs.[1]
Disclaimer: This is general information; consult professionals for advice. Homejourney verifies data for your trust.
Ready to finance? Start with Homejourney's Bank Rates ">mortgage rates and Property Search ">search verified properties. Link back to our pillar for the full process.
