Financing Options for Foreign Buyers in Singapore 2026 | Homejourney
Foreign buyers in Singapore can secure mortgages from local banks for private properties like condos, with a maximum Loan-to-Value (LTV) ratio of 75% on first-time purchases, requiring at least 25% cash down payment plus 60% Additional Buyer's Stamp Duty (ABSD).[1][2]
At Homejourney, we prioritize your safety by verifying all financing details and market data, helping you navigate these rules transparently. This cluster article dives into tactical financing strategies, linking back to our comprehensive Homejourney's 2026 Guide: Foreigners Buying Property in Singapore ">Homejourney's 2026 Guide: Foreigners Buying Property in Singapore pillar for the full property journey.
Why Financing Matters for Foreign Buyers in 2026
Singapore's property market remains resilient in 2026, with condo prices stable amid high ABSD deterring speculation.[1][8] Foreigners, including expats on Employment Passes, face stricter rules: no HDB access, 60% ABSD on purchases, and no CPF usage for down payments.[1][2][3]
These factors demand precise planning. For a S$2 million condo, expect S$1.2 million ABSD, S$500,000 down payment at 75% LTV, plus fees—totaling over S$1.77 million upfront.[1] Homejourney's verified data ensures you calculate accurately, building trust through transparency.
Current SORA-linked loans dominate, with floating rates starting at 0.70% spread for two years.[1] This guide equips you with actionable steps, avoiding common pitfalls.
Key Financing Rules for Foreigners: LTV, TDSR, and ABSD
Loan-to-Value (LTV): Capped at 75% for loans under 30 years or age 65; drops to 55% for longer tenures.[1][2] No CPF means full cash down payment.
Total Debt Servicing Ratio (TDSR): Limits debt to 55% of gross income. A S$1.5 million loan at 4% stress rate needs ~S$7,900 monthly, requiring S$14,400+ income.[1]
ABSD: 60% on purchase price/valuation, due within 14 days of Option to Purchase (OTP).[1] Use our ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ">ABSD Stamp Duty Calculator & Guide 2026 for precise computations.
| Factor | Foreigner Limit 2026 | Example (S$2M Condo) |
|---|---|---|
| LTV Max | 75% | S$1.5M loan |
| ABSD | 60% | S$1.2M |
| Down Payment (Cash) | 25% + ABSD + Fees | S$1.77M+ |
Top Banks and Loan Packages for Foreign Buyers
Major banks like DBS, OCBC, UOB, HSBC, Citi, and Standard Chartered offer expat-friendly mortgages with dedicated desks.[1][2] Minimum loans often S$500,000 for international banks.
- Floating SORA Packages: 0.70% spread first 2 years, then 1.2-1.5%.[1]
- Fixed-Rate: 2.8-3.2% for 2-3 years.[1]
- Insider Tip: Shop via Homejourney's Bank Rates ">bank rates comparison—local banks waive fees for Employment Pass holders; internationals suit complex incomes.
Compare options on Foreign Buyer Loans in Singapore 2026: Rates, LTV & Bank Options ">Foreign Buyer Loans in Singapore 2026 for rates and eligibility.
Step-by-Step: Securing Your Mortgage as a Foreign Buyer
- Assess Eligibility: Gather payslips (6 months), employment contract, tax returns, passport. Minimum income ~S$10,000/month typical.[1][2]
- Get In-Principle Approval (IPA): Apply to 2-3 banks online; valid 30 days, issued in 3-5 days.[1][3]
- Property Hunt Safely: Use Homejourney's Property Search ">property search and Projects Directory ">projects directory for verified condos like those in Orchard or Marina Bay.
- Exercise OTP: Pay 5% deposit; trigger ABSD.[1]
- Valuation & Formal Offer: Bank values property; sign if matches price.[1]
- Completion: 8-12 weeks; lawyer handles stamping. Total timeline: 2-3 months.
Pro Tip: Secure IPA before viewing—sellers prioritize financed buyers. See our Step-by-Step Property Buying Process for Foreigners | Homejourney ">Step-by-Step Property Buying Process for Foreigners.
Costs Breakdown and Hidden Fees
Beyond ABSD/LTV: BSD (1-6% tiered), OTP fee (1%), valuation (S$500-1,000), legal fees (S$2,000-3,000).[1][2] For a S$2M buy: ~S$150,000 extra.
- Renovation Loans: Available post-purchase for eco-upgrades.[2]
- No Second-Home Perks: 45% LTV if existing loan.[2]
Budget 30-35% total upfront. Homejourney verifies these via official URA/IRAS data.
Common Mistakes and How to Avoid Them
Mistake 1: Underestimating ABSD—many forfeit OTPs.[1] Solution: Use our calculator early.
Mistake 2: Single-bank IPA—spreads vary 0.5%.[1] Insider: DBS/OCBC fastest for EP holders.
Mistake 3: Ignoring TDSR—job changes kill approvals. Maintain 6-month buffer income proof.
Red Flag: Valuations 10-20% below price in cooling markets—top up cash or walk.[1] Always consult lawyers; Homejourney connects verified pros.
When to Seek Expert Help
Complex incomes (e.g., bonuses, multi-currency)? Use HSBC/Standard Chartered.[1] PR applicants: Rates improve post-approval.[2] Disclaimer: This is general info; consult MAS-regulated advisors for personalized advice. Homejourney ensures safe transactions via verified partners.
FAQ: Financing Options for Foreign Buyers in Singapore
Can foreigners get 75% LTV mortgages in 2026?
Yes, for first private property purchases under 30-year tenure.[1][2]
What banks lend to foreigners?
DBS, OCBC, UOB, HSBC, Citi, Standard Chartered—check Bank Rates ">Homejourney bank rates.[1][2]
How much ABSD do foreign buyers pay?
60% of price/valuation, e.g., S$1.2M on S$2M condo.[1]
What's the mortgage approval timeline?
IPA: 3-5 days; full: 1-2 weeks post-OTP.[1][3]
Can I use CPF for down payment?
No, foreigners pay 100% cash.[2]
Ready to finance your Singapore condo? Start with Homejourney's secure Property Search ">property search and Bank Rates ">mortgage rates. For maintenance post-purchase, explore Aircon Services ">aircon services. Link back to our pillar: Homejourney's 2026 Guide: Foreigners Buying Property in Singapore ">Foreigners Buying Property in Singapore. Trust Homejourney for verified, safe property journeys.
