Financing Options for Foreign Buyers in Singapore | Homejourney 2026

Financing Options for Foreign Buyers in Singapore: A Complete Guide

Foreign buyers in Singapore can access mortgage financing through local banks and private lenders, though with stricter requirements than local citizens. The key to securing favorable financing lies in understanding your Loan-to-Value (LTV) limits, preparing comprehensive financial documentation, and exploring all available options to find the best rates and terms for your situation.

At Homejourney, we prioritize your safety and success in property transactions by providing transparent, verified information about financing options. This guide walks you through everything foreign buyers need to know about securing a mortgage in Singapore, from eligibility requirements to comparing lenders.

Understanding Your Loan-to-Value (LTV) Limits as a Foreign Buyer

The Loan-to-Value (LTV) ratio is the percentage of your property's purchase price that a bank will lend to you. This is the most critical number you need to understand, as it directly determines how much cash you'll need to provide as a down payment.[1][5]

For your first property purchase without any existing mortgage loans: You can borrow up to 75% of the property's market value or purchase price, whichever is lower.[1][5] This means you'll need to provide at least 25% in cash as a down payment. However, some lenders may require even more—up to 30-40% depending on their internal credit guidelines.[3]

If you already have one outstanding mortgage loan: Your LTV drops significantly to 45% of the purchase price.[2][5] This means you'll need 55% in cash down payment for your second property.

With two or more existing mortgage loans: Your LTV further reduces to 35%, requiring you to have 65% in cash available.[2][5]

These limits exist to protect both lenders and borrowers from overextending themselves. Additionally, banks may reduce your LTV if your loan tenure exceeds 30 years or if your age plus loan tenure would exceed 65 years.[6]

Eligibility Requirements for Foreign Buyers

Singapore banks distinguish between two types of foreign applicants: onshore foreigners (those employed and residing in Singapore) and offshore foreigners (those living outside Singapore). Your eligibility pathway differs based on your residency status.

Onshore Foreigners (Employed in Singapore)

If you're working and living in Singapore, banks primarily assess your creditworthiness through your credit score and financial track record.[2][7] You'll need to demonstrate a strong payment history and stable income to qualify for favorable rates.

Offshore Foreigners (Living Outside Singapore)

Banks take a more conservative approach with offshore applicants, focusing heavily on your net worth and proof of income.[1][2][7] You'll need to provide comprehensive documentation proving your financial stability and capacity to service the loan from abroad.

Credit Score and Financial Documentation

Regardless of your residency status, maintaining an excellent credit standing is essential.[2] Banks will verify your eligibility based on your financial profile. Required documents typically include:[1]

Latest payslips (usually last 3-6 months)
Bank account statements (last 6 months minimum)
Notice of Assessment (tax returns)
CPF Ordinary Account statement (if applicable)
Net worth statement showing all assets and liabilities
Proof of employment contract or business registration

Having all these documents prepared before approaching lenders significantly streamlines the approval process and demonstrates your credibility to banks.

Banking Options: Traditional Banks vs. Private Lenders

Foreign buyers have two primary financing pathways: traditional commercial banks and private lenders. Each option has distinct advantages and limitations.

Traditional Commercial Banks

All major banks in Singapore offer home loans to foreign buyers purchasing authorized residential private properties.[1] Traditional banks provide competitive interest rates, typically pegged to the Singapore Interbank Offered Rate (SIBOR) or their own fixed deposit rates.[6] The advantage is lower interest rates compared to private lenders, though banks maintain stricter lending criteria.

Banks typically offer fixed-rate loans for 3-5 years, after which rates revert to floating rates.[6] There are no perpetual fixed-rate home loans available in Singapore, so you should plan for potential rate increases after your initial fixed period ends.

Private Lenders and Alternative Financing

Private lenders offer more flexibility and may be willing to work with applicants who don't meet strict bank criteria.[2] However, they typically charge higher interest rates and may have different lending terms. One significant advantage: if you're a Singapore accredited investor, you can be exempted from TDSR (Total Debt Servicing Ratio) requirements when borrowing from registered private funders.[2]

Private lenders base their decisions primarily on property collateral rather than personal creditworthiness, making them an option for those with less conventional financial profiles.

Interest Rates and Loan Terms for Foreign Buyers

Foreign buyers typically pay higher interest rates than local citizens, reflecting the perceived additional risk.[3] To get the best rates available, compare offerings from multiple banks using resources like Bank Rates to see current rates from major Singapore lenders.

When evaluating loan terms, consider:

Fixed-rate period: Longer fixed periods (5 years vs. 3 years) provide stability but may come with slightly higher rates
Loan tenure: Longer tenures (25-30 years) mean lower monthly payments but higher total interest paid
Flexibility: Some banks offer options to refinance or switch packages when your fixed period ends
Processing fees: Compare origination fees, valuation fees, and legal fees across lenders

A mortgage consultant can negotiate with banks on your behalf to secure the best package based on your financial situation.[1]

Additional Stamp Duties and Costs for Foreign Buyers

Beyond your mortgage payments, foreign buyers face additional stamp duties that significantly impact your total investment cost. Understanding these costs upfront is crucial for accurate financial planning.

Additional Buyer's Stamp Duty (ABSD): Foreign buyers pay 20% ABSD on their first residential property purchase, 30% on the second property, and 30% on the third and subsequent properties.[1] These are substantial costs on top of your down payment and should be factored into your financing plan.

For detailed guidance on calculating these duties and understanding the full cost implications, refer to .

Other costs to budget for include:

Legal and conveyancing fees
Property valuation fees
Mortgage insurance (if required)
Property taxes and maintenance fees

Property Types You Can Finance as a Foreign Buyer

Not all properties in Singapore are available to foreign buyers, and financing options vary by property type. Foreign buyers can generally finance:

Private residential properties: Condominiums, landed houses, and apartments in private developments
Executive condominiums (ECs): Government-built properties with some restrictions
Overseas properties: If you're a Singapore citizen, PR, or foreigner employed in Singapore, you can finance property purchases abroad through banks like OCBC and UOB[4][8]

Foreign buyers are generally not eligible to purchase HDB flats, which comprise over 75% of Singapore's owned properties and offer better mortgage terms.[3] For a complete overview of eligible property types, see Types of Properties Foreigners Can Buy in Singapore | Homejourney .