Financing Options for Foreign Buyers in Singapore | Homejourney Guide

For foreign buyers, the main financing options for buying property in Singapore are Singapore bank mortgages, overseas funding (home-country equity or private banks), and cash-plus-refinance strategies, all constrained by MAS loan rules and high Additional Buyer’s Stamp Duty (ABSD) for foreigners.[2][3][5] Choosing the right option starts with understanding how much you can borrow, how ABSD varies by nationality, and how to safely structure your purchase in Singapore’s tightly regulated market.[2][3]

This article is a focused Homejourney cluster guide under our main foreign buyers pillar, the Step-by-Step Property Buying Process for Foreigners Step-by-Step Property Buying Process for Foreigners | Homejourney . Here we go deep on financing so you can pair the right loan strategy with your property search on Homejourney Property Search and budget accurately before you commit.

1. Why financing is different for foreign buyers in Singapore (2024–2025)

Singapore is one of the most tightly regulated and expensive property markets in Asia, with strong demand from global investors and limited land. In 2024–2025, bank lending remains available to foreigners, but loan-to-value (LTV) ratios are conservative and stamp duties are high for non-residents.[2][3][4] The Monetary Authority of Singapore (MAS) caps LTV, loan tenure and uses the Total Debt Servicing Ratio (TDSR) framework to keep borrowing sustainable.[3][4]

On the ground, this means a typical foreign buyer looking at a S$2.2 million new launch condo near Great World MRT (a common price point for a 2-bedder in District 9/10 in 2025) should be prepared for:

Cash + available funds for 25–45% of the price (down payment and stamp duties)
Maximum bank LTV of about 55–75% depending on profile and existing loans[3][4]
ABSD that can be as high as 60% for most foreigners (unless exempt or enjoying special free-trade agreements)

Because Homejourney prioritises safety and transparency, we strongly recommend running your numbers early using our ABSD resources ABSD Stamp Duty Calculator and Guide 2025 | Homejourney Singapore and comparing bank rates via Bank Rates before you even start making offers.

2. Key Singapore financing concepts foreign buyers must know

Singapore uses some terms that may be different from your home country. Here are the essentials in simple language.

2.1 Loan-to-Value (LTV)

Loan-to-Value (LTV) is the maximum percentage of the property price or value that a bank will lend.[3][4] For most buyers (including foreigners) buying private residential property:

First housing loan: up to about 75% LTV if conditions are met[3][4]
With one existing loan: LTV often drops to around 45%[3]
With two or more loans: LTV may drop to around 35%[3]

Banks can further reduce LTV depending on age, loan tenure, property type and credit profile.[3][4] From experience accompanying clients in the CBD and East Coast areas, we often see foreigners practically capped at 60–70% LTV due to income documentation or overseas-based income concerns, even if they have strong net worth.

2.2 TDSR: Total Debt Servicing Ratio

TDSR limits your total monthly debt obligations (including all home, car, personal, and overseas loans) to a maximum percentage of your gross monthly income, as set by MAS. Banks must check this before approving your mortgage. Many foreigners underestimate how overseas car loans or student loans back home can eat into TDSR and reduce their loan quantum.

2.3 CPF and HDB for foreigners

Most foreigners cannot use CPF for property purchases, because they do not contribute to the Central Provident Fund unless they are Permanent Residents (PRs).
Non-PR foreigners cannot buy HDB flats, and generally focus on private condos, apartments, or landed property with approval. See Types of Properties Foreigners Can Buy in Singapore | Homejourney for detailed eligibility.

Because there is no CPF to draw on, your down payment must be fully in cash or cash-equivalent funds.

3. ABSD comparison by nationality: how it affects financing options

Additional Buyer’s Stamp Duty (ABSD) is a one-time tax on top of Buyer’s Stamp Duty (BSD) for residential purchases. For foreigners, ABSD is often the single largest upfront cost and directly shapes your financing strategy.

3.1 Foreigner ABSD comparison (high-level)

As of 2024–2025, most foreigners pay significantly higher ABSD than Singapore Citizens, and ABSD rates differ by nationality under certain free trade agreements.[2]99.co Property Insights You can find a detailed, updated breakdown in “Singapore ABSD Rates by Nationality 2025: Definitive Homejourney Guide” Singapore ABSD Rates by Nationality 2025: Definitive Homejourney Guide .

In practical terms:

Most foreign individuals: pay the highest ABSD tier (foreigner ABSD comparison shows this is substantially more than Singapore Citizens and PRs).
Some nationalities (e.g., under certain FTAs) may enjoy ABSD parity with Singapore Citizens, effectively paying lower ABSD than other foreigners.[2]EdgeProp Property News

Because ABSD is paid in cash and not financed by banks, a S$2.2 million purchase with 60% ABSD means S$1.32 million in tax alone, on top of the regular 4–5% BSD. This can completely change which financing option is realistic.

3.2 Using Homejourney’s ABSD tools safely

Homejourney provides an ABSD Stamp Duty Calculator and guide ABSD Stamp Duty Calculator and Guide (2025) | Homejourney Singapore to help you:

Compare ABSD rates across different nationalities quickly (ABSD comparison nationality)
Estimate total stamp duty (ABSD + BSD) for your budget (stamp duty comparison)
Stress-test cash requirements before talking to banks

Insider tip: Many foreign buyers viewing showflats around Redhill or Lentor underestimate ABSD and then have to walk away after booking. Always run your ABSD scenario with Homejourney before paying a booking fee, especially for new launches with tight payment timelines.

4. Main financing options for foreign buyers in Singapore

Foreigners generally combine one or more of these financing routes. Each has different risk and documentation requirements.

4.1 Singapore bank mortgages for foreigners

Most foreign buyers use local Singapore banks (DBS, UOB, OCBC, HSBC, etc.) which do lend to foreigners subject to credit checks.[2][3][4][5]

Typical LTV: about 55–75% depending on number of existing loans, income profile, and age.[2][3][4]
Interest rates: Average mortgage rates around 2.5%–2.75% in 2025, usually pegged to SORA (Singapore Overnight Rate Average).[5]
Loan tenure: Up to 35 years or until age 75, whichever is earlier, for non-HDB properties.[3][4]

Documents commonly required (expect banks to be strict for foreigners):

Passport and proof of current overseas address
Latest 3–6 months’ payslips or income statements
Recent 6–12 months’ bank statements
Tax returns from your home country
Details of existing loans and liabilities (including overseas loans)

You can use Homejourney’s bank rates comparison tool Bank Rates to get a safe, transparent overview of current packages without sharing documents upfront. Once ready, request an In-Principle Approval (IPA) so you know your maximum loan amount before bidding.[3]

4.2 International banks and private banks

Some foreign buyers with higher net worth choose international or private banks that can lend against global assets.[1][6][9] These lenders sometimes: