Financing Options for Foreign Buyers in Singapore | Homejourney
Foreign buyers in Singapore can secure bank mortgages up to 75% loan-to-value (LTV) on their first private residential property, subject to strict Total Debt Servicing Ratio (TDSR) checks and high Additional Buyer's Stamp Duty (ABSD) of 60% in 2026[1].
This cluster article dives deep into these financing options for foreign buyers in Singapore, building on our pillar guide Foreigner Property Buying in Singapore: 8-Step Process & 2026 Rules Foreigner Property Buying in Singapore: 8-Step Process & 2026 Rules . At Homejourney, we prioritize your safety with verified data and transparent advice, helping you navigate cooling measures like elevated ABSD while accessing reliable loans from DBS, OCBC, UOB, HSBC, and Citi.
Why Financing Matters for Foreign Buyers in 2026
Singapore's property market remains resilient, but foreigners face a 60% ABSD on purchases like a S$2 million condo, requiring S$1.2 million upfront plus a 25% down payment[1]. Banks stress-test at 4% rates, demanding monthly incomes above S$14,000 for typical loans[1].
Homejourney verifies these rules from MAS and IRAS sources, ensuring you avoid pitfalls. Current SORA-linked packages start at 0.70% spreads for two years, reverting to 1.2-1.5%[1]. This guide equips you with actionable steps for In-Principle Approval (IPA) and beyond.
Key Financing Rules: LTV, TDSR, and ABSD Impact
Loan-to-Value (LTV) Limits: Foreigners get 75% LTV on first loans if tenure ≤30 years or age <65; drops to 55% otherwise[1]. For a S$2M condo, borrow up to S$1.5M, needing S$500K cash equity plus ABSD.
- No CPF for foreigners, all down payment in cash.
- Second property: LTV falls to 45%; third to 35%[2].
Total Debt Servicing Ratio (TDSR): Debt payments ≤55% of gross income at 4% stress rate. A S$1.5M/25-year loan needs ~S$7,900/month, so minimum S$14,400 income[1]. Accredited Investors may bypass via private lenders[2].
ABSD at 60% hits hardest—use Homejourney's ABSD Stamp Duty Calculator ABSD Stamp Duty Calculator & Guide 2026 | Homejourney for precise calculations. Note EFTA citizens like Norwegians enjoy exemptions—see our Norway Citizens Buying Property in Singapore guide Norway Citizens Buying Property in Singapore: EFTA ABSD Exemption Guide | Homejo... .
Available Financing Options for Foreigners
Singapore banks welcome foreigners with Employment Passes, offering SORA or fixed-rate packages. Local banks (DBS, OCBC, UOB) have expat desks; internationals (HSBC, Citi) suit complex incomes[1].
| Bank Type | Key Features | Foreigner LTV |
|---|---|---|
| Local (DBS/OCBC/UOB) | SORA +0.70% (2yrs), streamlined IPA | Up to 75% |
| International (HSBC/Citi) | Multi-currency, min S$500K loan | Up to 75% |
| Private Lenders | For Accredited Investors, up to 70% LTV[2] | TDSR-exempt |
Check live rates on Homejourney's bank rates page Bank Rates for comparisons. Insider tip: Apply to 2-3 banks pre-offer—variations in spreads save thousands.
Step-by-Step Guide to Secure Financing
- Get IPA (3-5 days): Submit payslips (3-6 months), tax returns, employment contract, passport. Valid 30 days[1][3].
- Make Offer & Exercise OTP: Pay 5% deposit; lawyer handles ABSD within 14 days.
- Valuation & Formal Offer: Bank values property (1 week); sign if ≥ purchase price.
- Completion: Mortgage registers 8-12 weeks later. Total timeline: 2-3 months.
Documents: Proof of funds for down payment/ABSD, credit report. Homejourney's property search Property Search lets you filter by budget post-IPA.
Costs Breakdown and Hidden Fees
For S$2M condo:
- ABSD: S$1.2M (60%)
- Down payment: S$500K (25%)
- Buyer Stamp Duty (BSD): ~S$74K
- Legal/Valuation: S$5-10K
- Total Upfront: ~S$1.78M
Monthly: S$7,900+ at 4% stress. Watch prepayment penalties (1-1.5% early repayment) and valuation shortfalls—top up cash if needed[1].
Common Mistakes and How Homejourney Helps
Avoid: Skipping IPA (sellers reject unfinanced offers); underestimating ABSD (late fees 12%/year); ignoring TDSR (rejections mid-process). Real example: A Norwegian exec saved via EFTA exemption but forgot valuation gap, topping S$100K cash[1].
Red flags: Unverified agents pushing unfinanceable properties. Homejourney verifies listings in our projects directory Projects Directory , building trust through transparency.
Decision Framework: Is Financing Right for You?
Assess: Stable income >S$15K/month? Funds for 60%+ ABSD/down? Compare via table above. Pros: Leverage at 75% LTV; cons: High cash needs, resale restrictions (need approval).
Seek lawyer/banker advice—Homejourney connects you safely. For property types, see Types of Properties Foreigners Can Buy Types of Properties Foreigners Can Buy in Singapore | Homejourney .
FAQ: Financing for Foreign Buyers
Can foreigners get 75% LTV in Singapore?
Yes, on first private property if tenure limits met[1].
What income for a S$1.5M loan?
At least S$14,400 gross/month under TDSR[1].
Norway ABSD exemption?
EFTA citizens like Norwegians are exempt—full guide Norway Citizens Buying Property in Singapore: EFTA ABSD Exemption Guide | Homejo... .
Best banks for expats?
DBS/OCBC/UOB for speed; HSBC for internationals[1]. Check Bank Rates .
Private loans viable?
Yes for Accredited Investors, TDSR-free up to 70%[2].
Disclaimer: This is general info; consult professionals. Rates as of 2026 may change—verify with MAS/IRAS. Ready to finance safely? Start with Homejourney's property search Property Search and link back to our pillar for the full process. Your trusted partner for secure Singapore property journeys.
