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 properties, but face 60% Additional Buyer's Stamp Duty (ABSD) and strict Total Debt Servicing Ratio (TDSR) checks.[1]
This cluster article dives deep into financing options for foreign buyers in Singapore, building on our pillar guide Foreigner vs PR vs Citizen: Singapore Property Buying Rules 2026 Foreigner vs PR vs Citizen: Singapore Property Buying Rules 2026 . At Homejourney, we prioritize your safety with verified data and transparent advice to help you navigate high-stakes decisions confidently.
Why Financing Matters for Foreign Buyers in 2026
Singapore's property market remains resilient in 2026, with condo prices stable around S$2 million for prime units, but foreigners must plan for massive upfront costs like 60% ABSD on purchases.[1] Unlike citizens using CPF, foreigners rely on cash down payments of at least 25% plus duties, totaling over 85% equity for a S$2 million buy.
Securing financing early via In-Principle Approval (IPA) proves your ability to sellers, avoiding lost opportunities. Homejourney's bank rates comparison tool helps you shop lenders safely, ensuring you get the best SORA-linked packages without hidden fees.
Key Differences: Foreigner, PR, Citizen Comparison
Foreigner PR citizen comparison reveals stark contrasts in property buying comparison. Citizens enjoy 90%+ LTV on HDB (ineligible for foreigners) and CPF usage; PRs get lower ABSD (5-30%) and partial CPF; foreigners face 60% ABSD, no CPF, and max 75% LTV on private properties only.[1]
| Status | ABSD (2026) | Max LTV | CPF Use |
|---|---|---|---|
| Citizen | 0% (first), 17% (second) | 75-90% | Yes |
| PR | 5% (first), 30%+ (second) | 75% | Limited |
| Foreigner | 60% | 75% | No |
ABSD different status and ownership comparison make cash reserves critical for foreigners. Use Homejourney's projects directory to verify valuations before committing.[1]
Available Financing Options for Foreigners
Local banks dominate with SORA-pegged loans: floating rates start at 0.70% spread for 2 years, fixed at 2.8-3.2%.[1] HSBC offers Green Mortgages for eco-properties and SmartMortgage offsets.[5] International banks like Citi suit complex incomes but require S$500k+ loans.
- SORA Floating: Low initial rates, ideal for short-term expats.
- Fixed-Rate: Payment stability amid rate uncertainty.
- Bridging Loans: Short-term for quick buys while arranging main finance (use cautiously due to high costs).[2]
No CPF means full cash for down payments. Check Homejourney bank rates for real-time comparisons.
LTV, TDSR, and MSR Rules Explained
Foreigners get 75% LTV on first private property loans under 30 years/age 65; drops to 55% for longer terms.[1] TDSR caps debt at 55% of income at 4% stress rate—e.g., S$1.5M loan needs S$14,400+ monthly income. MSR applies only to HDB (irrelevant for foreigners).
Insider tip: Banks scrutinize Employment Pass stability; 6+ months' payslips essential. Valuation shortfalls require cash top-ups—always IPA first.
Step-by-Step Financing Process
- Pre-Approval (Days 1-5): Submit passport, EP, payslips, tax returns for IPA from 2-3 banks.
- Property Search: Use Homejourney property search for verified listings.
- Option to Purchase (OTP): Pay 1% option fee; secure 14-day exclusivity.
- Exercise OTP (Day 14): Pay 4% more deposit; trigger ABSD/BSD payment within 14 days. See our ABSD guide.ABSD Stamp Duty Calculator & Guide 2026 | Homejourney
- Valuation & LO (Week 2-3): Bank valuates; sign Letter of Offer.
- Completion (8-12 Weeks): Funds disbursed; own your property.
Timeline: 2-3 months total. Lawyer handles stamping—budget S$5k+ fees.
Costs Breakdown and Common Pitfalls
For S$2M condo: S$1.2M ABSD + S$84k BSD + 25% down (S$500k) = S$1.784M upfront.[1] Hidden costs: legal fees (1%), valuation (S$2k), maintenance. Pitfalls: Underestimating TDSR (real case: expat rejected post-OTP); ignoring valuation gaps.
- Avoid: Single-bank reliance—compare via Homejourney.
- Avoid: Trusts for ABSD evasion (risky in 2026).[8]
Post-purchase, budget for upkeep; explore Homejourney aircon services for maintenance.
Decision Framework: Is Financing Right for You?
Weigh income stability, tenure needs, and rates. Pros: Leverage at 75% LTV; cons: High ABSD erodes yields. Consult pros if income irregular. Homejourney verifies data for safe choices.
Disclaimer: This is general info; seek financial/legal advice. Rates per MAS/URA 2026 rules.[1]
FAQ: Foreign Buyer Financing Questions
Can foreigners get 75% LTV in 2026?
Yes, for first private property loans under 30 years/age 65.[1]
What documents for IPA?
Passport, EP, 6 months' payslips, employment contract, tax returns, bank statements.[1]
ABSD for foreigners?
60% flat rate, payable 14 days post-OTP.[1] Use our stamp duty guide.Singapore Property Stamp Duty for Foreigners: BSD & ABSD 2026 Guide | Homejourne...
Best banks for expats?
DBS, OCBC, UOB, HSBC—check Homejourney mortgage rates.
Bridging loans viable?
Yes for short-term, but high interest; pair with long-term mortgage.[2]
Ready to finance? Start with Homejourney search and rates for trusted, verified options. Link back to our pillar: Foreigner vs PR vs Citizen Property Rules Foreigner vs PR vs Citizen: Singapore Property Buying Rules 2026 . Homejourney: Safe, transparent property journeys.
