Financing Options for Foreign Buyers in Singapore: 2026 Guide
Foreign buyers in Singapore can secure bank mortgages for condos and private properties, with maximum Loan-to-Value (LTV) ratios of 75% for first-time loans under 30 years or age 65, subject to strict Total Debt Servicing Ratio (TDSR) checks.[1]
At Homejourney, we prioritize your safety by verifying financing details and connecting you to reliable options, ensuring transparent decisions in a trusted environment. This cluster focuses on tactical financing steps, linking back to our pillar guide on Step-by-Step Property Buying Process for Foreigners.
Why Financing Matters for Foreign Buyers
High Additional Buyer's Stamp Duty (ABSD) at 60% for foreigners in 2026 demands strong upfront cash, making efficient financing critical.[1] Without CPF access, foreigners rely on bank loans, but LTV caps and TDSR (capping debt at 55% of income) limit borrowing.[1]
Current market context shows SORA-linked rates from 0.70% initial spreads, rising to 1.2-1.5%.[1] Homejourney's bank rates tool helps compare options safely, building trust through verified data.
Eligibility and Key Limits for Foreigners
Foreigners on Employment Passes qualify if they show stable income via payslips, tax returns, and contracts. Banks like DBS, OCBC, UOB, HSBC, and Citi specialize in expat loans, often requiring minimum S$500k loans for internationals.[1]
- LTV Limits: 75% for first loan (<30 years/age 65); 55% if longer.[1]
- TDSR: Stress-tested at 4%; e.g., S$1.5M loan needs S$14,400+ monthly income.[1]
- ABSD Impact: 60% on purchase price; pay within 14 days of Option to Purchase (OTP).[1]
Example: For a S$2M condo, borrow S$1.5M (75% LTV), pay S$500k downpayment + S$1.2M ABSD = S$1.7M+ cash needed.[1] Use Homejourney's ABSD calculator for precise estimates.
Loan Types Available
Floating SORA packages dominate: 0.70% spread first 2 years, then 1.2-1.5%.[1] Fixed rates: 2.8-3.2% for 2-3 years.[1] Accredited investors may access private funders exempt from TDSR, up to 70% LTV via bridging loans.[2]
| Loan Type | Initial Rate | Pros | Cons |
|---|---|---|---|
| SORA Floating | 0.70% (2 yrs) | Low start, flexible | Rate risk post-lock |
| Fixed | 2.8-3.2% | Payment certainty | Higher initial cost |
| Private (Accredited) | Varies | TDSR exempt | Restricted access |
Step-by-Step Financing Process
- Get In-Principle Approval (IPA): Submit docs (payslips, passport, employment contract) to 2-3 banks. Valid 30 days; 3-5 days turnaround.[1]
- Make Offer & Exercise OTP: Show IPA to agent. Pay 5% deposit; trigger ABSD.[1]
- Valuation & Formal Offer: Bank values property (1 week). Sign Letter of Offer if matches price.[1]
- Legal Completion: Pay downpayment, duties; drawdown funds. Full process: 8-12 weeks.
Insider tip: Valuation shortfalls are common in hot areas like Orchard; top up cash to avoid delays. Homejourney verifies projects via projects directory.
Costs Breakdown and Hidden Fees
Total upfront: 25%+ downpayment + 60% ABSD + 4-5% BSD + legal fees (S$3-5k).[1] Monthly: Stress-tested at 4%; e.g., S$7,900 for S$1.5M/25yrs.[1]
- Legal/Valuation: S$5-10k
- Prepayment Penalties: 1.5% year 1-3
- Processing Fees: Waivable at some banks
Check Homejourney bank rates for latest waivers, prioritizing your secure choice.
Common Mistakes and How to Avoid Them
Mistake 1: Skipping IPA – Sellers reject unproven buyers. Solution: Secure before viewing via Homejourney's property search.
Mistake 2: Underestimating ABSD cash needs – 60% hits hard. Use our ABSD guide.
Mistake 3: Single-bank reliance – Spreads vary. Compare via trusted tools.
For Chinese buyers (PRC condo purchase), follow our China national condo guide integrating financing.[1]
For Specific Nationalities: Chinese Buyer Process
Chinese nationals follow standard steps but face scrutiny on income docs. Chinese buy condo step: IPA first, then OTP with ABSD remittance. Homejourney ensures verified agents for safe PRC condo purchase.[1]
FAQ
Can foreigners get 75% LTV in 2026?
Yes, for first loans under 30 years/age 65, if TDSR met.[1]
What documents for IPA?
Passport, EP, 3-6 months payslips, tax returns, bank statements.[1]
ABSD rate for foreigners?
60% on residential purchases.[1]
Best banks for expats?
DBS, OCBC, UOB, HSBC, Citi with expat desks.[1]
TDSR exemption possible?
Yes, for accredited investors via private funders.[2] Disclaimer: Consult professionals; rates change.
Ready to finance safely? Explore options on Homejourney bank rates and search properties via property search. Link back to our pillar: Step-by-Step Property Buying Process for Foreigners. Homejourney verifies every step for your trust.
