Financing Options for Foreign Buyers in Singapore: Your 2026 Guide
Foreign buyers in Singapore can secure home loans from local banks with up to 75% Loan-to-Value (LTV) ratio on their first property, subject to strict income, credit, and tenure rules.[1][2][4] At Homejourney, we prioritize your safety by verifying financing details and connecting you to reliable options, ensuring transparent decisions in a trusted environment.
This cluster article dives into tactical financing strategies for foreigners, building on our pillar guide Step-by-Step Property Buying Process for Foreigners | Homejourney . Focus here on actionable steps for condos, Sentosa Cove properties, and landed options like those in Sentosa Cove foreigner zones.
Why Financing Matters for Foreign Buyers in 2026
With ABSD at 60% for foreigners, total upfront costs soar—e.g., S$1.2 million on a S$2 million condo.[1] Banks like DBS, OCBC, UOB, HSBC, Citi, and Standard Chartered offer mortgages to expats, but LTV caps at 75% for first loans (55% if tenure exceeds 30 years or age 65).[1][2][4]
Singapore's Total Debt Servicing Ratio (TDSR) limits repayments to 55% of gross income, applied rigorously to foreigners without CPF.[2] Current SORA-linked rates start at 0.70% spread for 2 years, reverting to 1.2-1.5%.[1] Homejourney's Bank Rates tool helps compare these safely.
Sentosa Cove: Special Rules for Foreigners
Sentosa Cove foreigner buyers enjoy unique access to landed properties and luxury condos without SLA approval for most non-landed types.[2] For buy Sentosa property or landed Sentosa foreign, finance up to 75% LTV, but expect higher scrutiny on valuations near One°15 Marina Club.
Example: A S$3 million Sentosa Cove villa requires S$750,000 downpayment at 75% LTV, plus 60% ABSD (S$1.8 million).[1] Check our Sentosa Cove Property Guide for Foreign Buyers | Homejourney for investment yields averaging 3-4% rental returns.
Key Financing Limits and Requirements
Foreigners cannot use CPF, so all equity is cash-based. LTV tiers: 75% (no prior loans), 45% (one loan), 35% (two+ loans).[2] Tenure maxes at age 65 or 35 years.
| Scenario | Max LTV | Example (S$2M Property) |
|---|---|---|
| First loan, <30 yrs | 75% | Borrow S$1.5M |
| First loan, >30 yrs | 55% | Borrow S$1.1M |
| Second loan | 45% | Borrow S$900K |
Source: MAS guidelines via bank policies.[1][2] Always verify with Bank Rates for latest.
Step-by-Step Guide to Secure Financing
- Assess Eligibility: Calculate ABSD/BSD via Homejourney's ABSD Stamp Duty Calculator & Guide 2026 | Homejourney . Need steady income (min S$10K/month typical for expats), 3 payslips, tax assessments, passport.[2]
- Get In-Principle Approval (IPA): Apply to 2-3 banks (DBS, HSBC for expats). Valid 30 days, takes 3-5 days. Provides offer strength.[1][2]
- Property Search: Use Property Search for verified Sentosa Cove investment listings. Secure OTP (1-5% deposit).
- Valuation & Formal Offer: Bank valuates post-OTP; lend on lower of price/valuation. Sign Letter of Offer.
- Completion: Lawyer handles S&P, stamping (14 days for duties). Funds disburse at key collection (8-12 weeks).[1]
Insider tip: Expat desks at UOB near Raffles Place MRT (5-min walk) fast-track IPAs for Employment Pass holders.
Loan Package Types in 2026
- SORA Floating: 3M compounded SORA + 0.70% (2 yrs), then 1.2-1.5%. Best for short-term holds.[1]
- Fixed/Semi-Fixed: 2.8-3.2% for 2-3 years, then refi. Suits Sentosa Cove investment stability.[4]
- International Banks: HSBC/Citi for multi-currency, min S$500K loans.[1]
No perpetual fixes; all revert. Compare via Bank Rates . Post-purchase, maintain via Aircon Services for value.
Costs Breakdown: Real Example
For S$2M condo (Financing Options for Foreign Buyers in Singapore):
- ABSD: S$1.2M (60%).[1]
- BSD: ~S$74K (tiered 1-6%).
- Downpayment (25%): S$500K.
- Legal/Fees: S$10-20K.
- Total Upfront: ~S$1.78M cash.
Landed Sentosa foreign example (S$4M): Add SLA approval (S$5K fee, 1-3 months).[2]
Common Mistakes and How to Avoid Them
Mistake 1: Skipping IPA—sellers reject unproven buyers. Solution: Get 2 IPAs first.[1]
Mistake 2: Ignoring TDSR—overborrowing leads to rejection. Use Homejourney calculators.
Mistake 3: Valuation shortfalls—top-up cash. Insider: Sentosa Cove vals stable at S$2,200/psf.[3] See Types of Properties Foreigners Can Buy in Singapore | Homejourney .
Disclaimer: This is general info; consult lawyers/banks. Homejourney verifies data for trust.
FAQ: Financing for Foreign Buyers
Can foreigners get 75% LTV in Singapore?
Yes, on first property if tenure <30 years/age 65.[1][2]
What banks lend to expats?
DBS, OCBC, UOB, HSBC, Citi—check Bank Rates .[1]
Is Sentosa Cove open to foreigners?
Yes, condos/landed without SLA for most; ideal for Sentosa Cove investment.[2]
How much ABSD for foreigners in 2026?
60% on residential.[1]
Steps after IPA?
OTP, valuation, S&P—full process in Step-by-Step Property Buying Process for Foreigners | Homejourney .
Ready to finance safely? Explore verified options on Homejourney's Property Search and Projects Directory . Building trust one verified step at a time—start your Financing Options for Foreign Buyers in Singapore journey with us today.
