Financing Options for Foreign Buyers in Singapore | Homejourney 2026

Financing Options for Foreign Buyers in Singapore: Your Complete 2026 Guide

Foreign buyers can access mortgage financing in Singapore through local banks, but face stricter requirements than residents, including higher down payments, lower loan-to-value ratios, and additional stamp duties. Understanding your financing options—and the specific constraints you'll encounter—is essential before committing to a property purchase in Singapore's competitive market.

This guide walks you through every aspect of foreign buyer financing, from mortgage eligibility to cost calculations, helping you make informed decisions with confidence. At Homejourney, we prioritize your safety and success by providing verified, transparent information to guide your property investment journey.

Can Foreign Buyers Get Mortgages in Singapore?

Yes, foreign buyers can obtain mortgages from Singapore banks for eligible residential properties. However, the process involves more stringent requirements than what Singapore citizens and permanent residents face. All major Singapore banks—including DBS, OCBC, UOB, and Maybank—offer home loans to foreigners, but each has different internal credit guidelines and lending criteria.

The key distinction is between onshore foreigners (employed and residing in Singapore) and offshore foreigners (living overseas). Banks evaluate each category differently, affecting your approval chances and loan terms. Understanding where you fall in this classification helps you prepare appropriate documentation and realistic expectations for your mortgage application.

Homejourney recommends consulting with a mortgage broker who can negotiate on your behalf with multiple banks to secure the best package based on your financial situation. This professional guidance is particularly valuable for foreign buyers navigating Singapore's complex lending landscape.

Loan-to-Value (LTV) Ratios: How Much Can You Borrow?

The Loan-to-Value ratio determines the maximum percentage of your property's purchase price that banks will finance. This is one of the most critical factors affecting your borrowing capacity as a foreign buyer.

LTV Limits for Foreign Buyers

First property (no outstanding loans): Up to 75% LTV—you can borrow 75% of the property's market value or purchase price, whichever is lower
One outstanding loan: Maximum 45% LTV
Two or more outstanding loans: Maximum 35% LTV

These ratios apply to the lower of your property's market value or purchase price. For new properties, banks typically use the selling price as the market value. For resale properties, they may conduct their own valuation.

Banks may further reduce your LTV based on several factors: if your loan tenure exceeds 30 years, if your loan tenure plus your age would exceed 65 years, your credit profile, or the property type. For leasehold properties with 30 years or fewer remaining on the lease, most banks will not provide financing at all—a critical consideration when evaluating properties.

Down Payment Requirements: Cash You'll Need Upfront

Foreign buyers must prepare substantial cash down payments, significantly higher than what Singapore residents typically require. Expect to pay at least 25% of the property's value in cash, with some lenders requiring even more depending on your LTV ratio and financial profile.

This down payment requirement directly correlates with your LTV ratio. If you're approved for a 75% LTV on your first property, you'll need 25% cash. However, if your LTV is reduced to 55% due to loan tenure or age factors, you'll need 45% cash upfront. This substantial cash requirement is one of the most significant barriers foreign buyers face in Singapore's property market.

Homejourney recommends calculating your total cash requirements before beginning your property search. This includes not only your down payment but also stamp duties, legal fees, and inspection costs—your total cash outlay will typically exceed your down payment percentage.

Interest Rates and Loan Terms

Singapore banks do not offer perpetual fixed-rate mortgages. The "fixed rate loans" available typically lock in your rate for 3-5 years only, after which they revert to floating rates pegged to a benchmark. Understanding this structure is crucial for long-term financial planning.

Rate Benchmarks

Home loans in Singapore are typically pegged to one of three benchmarks:

SORA (Singapore Overnight Rate Average): The most common modern benchmark, replacing SIBOR
SIBOR (Singapore Interbank Offered Rate): The median interest rate among 12 major local banks
Bank's internal board rate: Set by individual banks based on their cost of funds

Interest rates for foreign buyers are typically higher than rates offered to residents. As of early 2026, rates remain competitive relative to global standards, but you should compare offerings from Bank Rates to understand current market conditions and find the most favorable terms for your situation.

Most loan tenures range from 20-30 years, though banks may reduce your LTV if your tenure exceeds 30 years or if your age plus tenure would exceed 65. Shorter tenures mean higher monthly payments but lower total interest paid over the life of the loan.

Documentation Requirements for Foreign Buyers

Banks require comprehensive documentation to evaluate your creditworthiness and income stability. The specific documents needed depend on whether you're an onshore or offshore foreigner.

For Onshore Foreigners (Employed in Singapore)

Latest payslips (typically last 3-6 months)
Bank statements (last 6 months minimum)
Notice of Assessment (latest available)
Employment contract or letter confirming employment
CPF Ordinary Account statement (if applicable) showing balance and contributions
Personal identification and passport
Proof of address in Singapore

For Offshore Foreigners (Living Overseas)

Proof of income (salary slips, employment letter, business financials)
Net worth statement showing assets and liabilities
Bank statements from your home country (last 6-12 months)
Tax returns from your home country (last 2-3 years)
Personal identification and passport
Proof of funds for down payment

Banks will verify your creditworthiness based on these documents. For onshore foreigners, a good credit score is essential to avoid roadblocks during application. For offshore foreigners, banks rely more heavily on your proof of income and net worth statement, as they cannot access your local credit history.

Different banks have different internal credit guidelines, so having a mortgage consultant review your documentation and negotiate with multiple lenders can significantly improve your approval chances and loan terms.

Additional Costs: ABSD and Stamp Duties

Beyond your mortgage and down payment, foreign buyers face substantial additional costs that significantly impact your total investment. The most substantial is the Additional Buyer's Stamp Duty (ABSD).

ABSD Rates for Foreign Buyers (2026)

First property: 60% of property price or market value (whichever is higher)
Second property: 20% ABSD
Third and subsequent properties: 30% ABSD

The 60% ABSD on your first property is substantial—a SGD 1 million property incurs SGD 600,000 in ABSD alone. This cost is in addition to your down payment and must be paid before you can complete your purchase. For detailed calculations specific to your property price, refer to ABSD Stamp Duty Calculator & Guide 2026 | Homejourney .

You'll also pay standard Buyer's Stamp Duty (BSD) at 1-4% depending on your property price, plus Seller's Stamp Duty if applicable. These costs compound significantly, making accurate financial planning essential before committing to a purchase.