Financing Options for Foreign Buyers in Singapore: Your 2026 Guide
Foreign buyers in Singapore can secure mortgages from local banks like DBS, OCBC, UOB, HSBC, and Citi, with Loan-to-Value (LTV) limits up to 75% for first-time private property purchases, provided the loan tenure does not exceed 30 years or age 65.[1][2]
At Homejourney, we prioritize your safety by verifying financing details and market data, helping you navigate high ABSD rates of 60% on residential properties while exploring FTA eligibility for potential remission.[1] This cluster article dives into tactical steps, connecting to our pillar guide on Step-by-Step Property Buying Process for Foreigners | Homejourney ">Step-by-Step Property Buying Process for Foreigners.
Why Financing Matters for Foreign Buyers in 2026
The Singapore property market remains resilient, with private condo prices stable amid global uncertainties. Foreigners face steep ABSD at 60% of purchase price or valuation (whichever higher), due within 14 days of Option to Purchase (OTP).[1] For a S$2 million condo, this means S$1.2 million upfront, plus Buyer Stamp Duty (BSD).
Despite this, banks offer competitive loans referencing SORA (Singapore Overnight Rate Average), with floating spreads from 0.70% initially.[1] Homejourney's verified data ensures you calculate costs accurately via our Bank Rates ">mortgage rates tool, building trust through transparency.
Key Financing Options Available
Foreigners cannot use CPF but qualify for bank mortgages on non-landed private properties like condos and executive condominiums (after 10-year MOP for ECs). Options include:
- Floating-rate SORA packages: 3-month compounded SORA + 0.70-1.5% spread; ideal for short-term savings.[1]
- Fixed-rate packages: 2-3 year lock-in at 2.8-3.2%; suits payment stability.[1][2]
- Bridge financing: Short-term for quick buys, interest-only from specialist lenders.[3]
Banks like HSBC cater to expats with multi-currency needs.[6] Compare via Bank Rates ">Homejourney bank rates for the best fit.
Loan-to-Value (LTV) and Down Payment Rules
Foreigners get 75% LTV on first property (max 30 years tenure), dropping to 55% for longer terms.[1] On S$2M condo: borrow S$1.5M, down payment S$500K cash + duties/fees (~S$1.77M total upfront).[1]
TDSR (Total Debt Servicing Ratio) caps debt at 55% of income; stress-tested at 4% rate. S$1.5M/25yr loan needs ~S$14,400 monthly income.[1]
FTA Eligibility, ABSD Remission Requirements, and Exemptions
FTA eligibility ABSD remission applies if buying under Free Trade Agreement (e.g., US-Singapore FTA for Americans). Buy first property, sell within 1 year, repurchase to qualify for remission—up to 100% if conditions met.[1]
To qualify ABSD exemption or remission: Meet FTA conditions property like citizenship from FTA country, no prior ownership, and timely sale/purchase. Check our FTA ABSD Remission Singapore: Eligibility Rules & Guide | Homejourney ">FTA ABSD Remission Guide and ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD Calculator. Always consult IRAS; Homejourney verifies rules for your safety.
| Scenario | ABSD Rate | Remission Possible? |
|---|---|---|
| First Buy (Non-FTA) | 60% | No |
| FTA Buyer, Sell & Repurchase | 60% (remissible) | Yes, 100% if eligible |
Step-by-Step: How to Secure Financing
- Assess Eligibility: Verify income (min S$14K+/mth for typical loans), credit via payslips, tax returns, employment pass.[1][2]
- Get In-Principle Approval (IPA): Apply online with 3-6 months docs; valid 30 days, 3-5 days turnaround.[1][2]
- Shop Banks: Local (DBS/OCBC/UOB) for expats; internationals (HSBC/Citi) for complex income. Use Bank Rates ">Homejourney rates.[1]
- Exercise OTP & Valuation: Bank values property; lend lower if shortfall.[1]
- Sign LO & Complete: Pay duties, finalize at 8-12 weeks.[1][2]
Timeline: IPA to disbursement ~1-2 months. Insider tip: Time IPA before viewings in hot spots like Orchard or Tanjong Pagar—sellers demand proof.[1]
Costs Breakdown and Hidden Fees
Expect: 25-50% down payment, legal fees S$3-5K, valuation S$500-1K, ABSD/BSD S$1.2M+ on S$2M buy.[1] No CPF, all cash. Stress-test ensures affordability; e.g., S$7,900/mth on S$1.5M loan.[1]
Hidden: Prepayment penalties (1-1.5% first 2yrs), admin fees. Use Homejourney's Projects Directory ">projects directory for real pricing in areas like District 10.
Common Mistakes and How to Avoid Them
- Underestimating ABSD: Budget 60%+; use ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD calculator.[1]
- No IPA Pre-Offer: Sellers reject; get it first via Bank Rates ">bank rates.[1][2]
- Ignoring TDSR: Test income at 4%; consult advisor.[1]
- Wrong Property Type: Stick to condos; see Types of Properties Foreigners Can Buy in Singapore | Homejourney ">Types of Properties for Foreigners.
Disclaimer: This is not financial advice; rates per MAS/URA as of 2026. Seek lawyer/banker; Homejourney verifies info for confident decisions.
FAQ: Foreign Buyer Financing Questions
Q1: Can foreigners get 75% LTV in Singapore?
A: Yes, on first private property if tenure ≤30yrs/age 65.[1]
Q2: What are FTA conditions property for ABSD remission?
A: FTA citizen, sell prior home within 1yr, repurchase eligible property.[1]
Q3: How to qualify ABSD exemption?
A: Limited; mainly FTA remission—check IRAS via Homejourney tools.[1]
Q4: Best banks for expat mortgages?
A: DBS, OCBC, UOB, HSBC; compare on Bank Rates ">Homejourney.[1][6]
Q5: Remission requirements for ABSD?
A: Meet FTA eligibility, timely transactions; full guide FTA ABSD Remission Singapore: Eligibility Rules & Guide | Homejourney ">here.[1]
Ready to explore? Search verified properties on Property Search ">Homejourney search and maintain your investment with Aircon Services ">aircon services. Link back to our pillar: Step-by-Step Property Buying Process for Foreigners | Homejourney ">Property Buying for Foreigners. Trust Homejourney for safe, transparent journeys.
