Financing Options for Foreign Buyers in Singapore: 2026 Essentials
Foreign buyers in Singapore can secure bank loans up to 75% Loan-to-Value (LTV) on their first private property purchase, but must pay 25% cash downpayment plus 60% Additional Buyer's Stamp Duty (ABSD) entirely in cash, as CPF funds are unavailable.[1][2][3]
This cluster article dives deep into financing options for foreign buyers in Singapore, building on our pillar guide to property buying for foreigners. At Homejourney, we verify all data to ensure a safe, trusted environment for your investment decisions.
Why Financing Matters for Foreign Buyers in 2026
The Singapore property market in 2026 remains attractive for foreigners, with prime residential values projected to grow 2-3.9%.[8] However, strict rules like 60% ABSD on purchases and TDSR caps at 55% of income require careful planning.[1][3]
Unlike locals, foreigners cannot use CPF, so liquidity is key. Use Homejourney's Bank Rates tool to simulate LTV and compare rates from DBS, OCBC, UOB, HSBC, and more—prioritizing transparency and user safety.[1][2]
Key Financing Options Available
Bank Mortgages are the primary choice, with SORA-pegged floating rates starting at 0.70% spread for 2 years (reverting to 1.2-1.5%) and fixed rates at 2.8-3.2% for 2-3 years.[1][2] Local banks like DBS and UOB offer expat desks for faster processing on Employment Pass (EP) holders.
International banks (HSBC, Citi, Standard Chartered) suit complex incomes or offshore earners, but often require minimum loans of S$500,000 and longer approvals.[3] For accredited investors (net worth >S$1M), private lenders bypass TDSR at 3-5% rates—higher risk, licensed by MAS.[3]
LTV and TDSR Limits Explained
Foreigners qualify for up to 75% LTV on first properties if loan tenure ≤30 years or matures by age 65; 55% for longer terms; 45% with one existing loan; 35% for two+.[1][2][3]
TDSR limits total debt to 55% of gross income, stress-tested at 4% rates. Example: S$10,000 monthly income caps debt at S$5,500 (after existing debts).[3]
| LTV Scenario | Max Borrow (S$2M Property) | Cash Down + ABSD (25% + 60%) |
|---|---|---|
| First Loan (75%) | S$1.5M | S$1.7M |
| With Existing Loan (45%) | S$900K | S$2.1M |
| Two+ Loans (35%) | S$700K | S$2.3M |
If bank valuation is lower (e.g., S$1.9M on S$2M purchase), cover the gap in cash.[1] Check BSD foreigner and ABSD rates via Homejourney's stamp duty calculator: ABSD Stamp Duty Calculator & Guide 2026 | Homejourney .
ABSD and BSD Impact on Financing
Buyer Stamp Duty (BSD) is progressive (1-6% up to S$1.5M+), while ABSD for foreigners is flat 60% in 2026, payable in cash on purchase price or valuation (higher).[1][3] For S$2M condo: S$1.2M ABSD + BSD ~S$92K.
Total upfront: 25% downpayment + duties. No CPF remission. See full breakdown in our Singapore Property Stamp Duty for Foreigners: BSD & ABSD 2026 Guide | Homejourne... .
Step-by-Step Financing Process
- Assess Eligibility (1-2 days): Gather EP, payslips (3-6 months), bank statements. Use Homejourney's Bank Rates for TDSR checks.[2]
- Get In-Principle Approval (IPA, 3-5 days): Apply to 2-3 banks (DBS, OCBC, UOB, HSBC); valid 30 days.[1][2]
- Sign Option to Purchase (OTP): Pay 1-5% option fee; show IPA to seller.[2]
- Full Loan Application (7-14 days): Bank valuation, legal review. Lend on lower of price/valuation.[1]
- Completion: Pay duties to IRAS, disburse funds at key collection (3-12 weeks post-OTP).[3]
Timeline: 4-8 weeks total. Insider tip: Apply IPA before viewing properties via Property Search to know your budget.[2]
Decision Framework: Choosing Your Loan
- Tenure: 15-20 years builds equity fast; 30 years lowers payments.[3]
- Rate Type: Floating for low initial costs; fixed for certainty.[1]
- Prepayment: Seek penalty-free options for flexibility.[3]
- Currency Risk: SGD loans if earning offshore—monitor FX.[3]
Compare via Bank Rates . For China nationals, review China Nationals Singapore Property Investment: 2026 Worth It Analysis | Homejour... .[1]
Common Mistakes to Avoid
Overlooking valuation gaps: If property valued S$1.8M on S$2M ask, fund S$200K+ extra cash.[1] Ignoring TDSR: Stress-test at 4%.[3] Single-bank reliance: Shop 2-3 for best rates.[2]
Red flag: Lenders skipping TDSR (illegal unless accredited).[3] Always consult professionals; this is not financial advice.
FAQ: Financing Options for Foreign Buyers
Can foreigners get 75% LTV in 2026?
Yes, for first private property loans ≤30 years or maturing by age 65.[1][2]
What are current ABSD rates for foreigners?
60% flat rate on purchase price/valuation (higher); use our stamp duty calculator foreign buyer tool: ABSD Stamp Duty Calculator & Guide 2026 | Homejourney .[3]
Which banks lend to foreigners?
DBS, OCBC, UOB, HSBC, Citi, Bank of China—verify real-time via Mortgage Rates .[1][2]
Can I use CPF for downpayment?
No, foreigners pay all cash for downpayment and ABSD.[3]
How long for loan approval?
IPA: 3-5 days; full: 7-14 days post-OTP.[2]
Ready to explore? Start with Homejourney's Property Search and Projects Directory for verified listings. Link back to our pillar: Step-by-Step Property Buying Process for Foreigners | Homejourney . Trust Homejourney for safe, transparent property journeys.
