Financing Options for Foreign Buyers in Singapore | Homejourney
Foreign buyers in Singapore can secure bank mortgages with up to 75% Loan-to-Value (LTV) on their first private residential property, but face strict Total Debt Servicing Ratio (TDSR) tests and a 60% Additional Buyer's Stamp Duty (ABSD).[1][2]
At Homejourney, we prioritize your safety by verifying financing details and market data, helping you navigate these rules confidently in a trusted environment.
Why Financing Matters for Foreign Buyers in 2026
With ABSD at 60% on properties like a S$2 million condo requiring S$1.2 million upfront, financing options determine affordability.[1] This cluster dives deep into mortgages, connecting to our pillar guide on Step-by-Step Property Buying Process for Foreigners | Homejourney ">Step-by-Step Property Buying Process for Foreigners, which covers the full journey.
Singapore's market remains attractive for investors, but foreigners need stable income proof—often S$14,400+ monthly for a S$1.5 million loan—to pass TDSR at 4% stress rates.[1] Homejourney's Bank Rates ">bank rates tool compares options transparently.
Key Eligibility and Limits for Foreign Mortgages
Foreigners on Employment Passes qualify for loans from DBS, OCBC, UOB, HSBC, and Standard Chartered, which have expat desks.[1] No CPF usage applies, so downpayments are fully cash-based: 25% minimum, rising to 50% without loans.[2]
- LTV Limits: 75% for loans ≤30 years or age <65; 55% otherwise.[1]
- TDSR: Debt ≤55% of gross income at 4% stress rate.[1]
- Tenure: Max 30-35 years, not past age 65.[1]
For Indian buyers or NRIs seeking Singapore property, these rules apply equally—check our Indian Citizens Guide to Buying Property in Singapore 2026 ">Indian Citizens Guide to Buying Property in Singapore 2026 for tailored insights.[1][2]
ABSD and Downpayment Breakdown
ABSD (60%) is non-financeable and due within 14 days of Option to Purchase (OTP).[1] Use Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD Stamp Duty Calculator for precise calculations.
| Property Price | ABSD (60%) | Downpayment (25% + ABSD) | Max Loan (75% LTV) |
|---|---|---|---|
| S$2M | S$1.2M | S$1.7M | S$1.5M |
| S$1.5M | S$0.9M | S$1.275M | S$1.125M |
Remission possible if buying with a Singaporean spouse, but not for HDB or new ECs.[2] Insider tip: Valuation shortfalls are common in cooling markets—budget 5-10% extra cash.[1]
Loan Types: SORA vs Fixed Packages
By 2026, most loans use 3-month compounded SORA + spread (0.70% initial, reverting to 1.2-1.5%).[1] Fixed rates start at 2.8-3.2% for 2-3 years.[1]
- Floating SORA: Lower initial payments, but rate risk.
- Fixed: Payment stability for expats with variable incomes.
- Refinancing: Available post-purchase if rates drop.
Indian buyers guide: Multi-currency options from HSBC suit INR earners; compare via Bank Rates ">Homejourney mortgage rates.
Step-by-Step Financing Process
- Get In-Principle Approval (IPA): Submit payslips, tax returns, employment contract. Valid 30 days, takes 3-5 days.[1]
- Search Properties: Use Property Search ">Homejourney property search for verified listings foreigners can buy—see Types of Properties Foreigners Can Buy in Singapore | Homejourney 2026 ">Types of Properties Foreigners Can Buy.
- Exercise OTP: Pay 5% deposit, trigger ABSD.[1]
- Valuation & Formal Offer: Bank valuates; sign if matches price.[1]
- Completion: Loan disburses at key collection; maintain property with Aircon Services ">Homejourney aircon services.
Timeline: 4-8 weeks from IPA to funding. For US citizens, explore FTA exemptions via How Americans Avoid 60% ABSD: US FTA Exemption Guide | Homejourney ">How Americans Avoid 60% ABSD.
Common Mistakes and Insider Tips
Avoid underestimating TDSR—S$7,900 monthly on S$1.5M loan needs S$14,400 income.[1] Real example: An Indian NRI in a S$1.8M condo faced 10% top-up after low valuation.
- Shop 3-5 banks; UOB/DBS favor straightforward expats.[1]
- Prepare 6 months' bank statements—delays kill deals.
- Factor legal fees (S$3,000-5,000) and BSD (up to 6%).
Red flag: Banks demanding >50% downpayment signal weak profile. Homejourney verifies data for safe decisions.
Financial Planning for Indian Buyers and NRIs
India citizen property purchases demand INR-SGD hedging. NRIs average S$1.5-3M condos in areas like Orchard or Marina Bay. Use Projects Directory ">Homejourney projects directory for market analysis.
Hidden costs: 1-2% agent fees, insurance. Stress-test at 4%+2% buffer. Disclaimer: This is general info; consult licensed advisors for personalized advice per MAS rules.
FAQ: Financing Options for Foreign Buyers in Singapore
Q: Can foreigners get 75% LTV loans?
A: Yes, on first private property if tenure ≤30 years and TDSR passed.[1]
Q: Is ABSD financeable?
A: No, pay 60% upfront within 14 days.[1][2]
Q: Best banks for Indian buyers?
A: HSBC/Citi for multi-currency; check Bank Rates ">Homejourney bank rates.[1]
Q: Indian buyer guide for Singapore property financing?
A: Same rules; stable S$15K+ income key. See our NRI guide.[1]
Q: What documents for IPA?
A: Passport, EP, 6 months' payslips, tax returns.[1]
Ready to explore financing options for foreign buyers in Singapore? Start with Homejourney's secure Property Search ">property search and Bank Rates ">mortgage rates for verified insights. Link back to our pillar: Step-by-Step Property Buying Process for Foreigners | Homejourney ">Step-by-Step Property Buying Process for Foreigners.
