Financing Options for Foreign Buyers in Singapore: Key Rules and Choices
Foreign buyers in Singapore, including Korean buyers and South Korea citizens, can secure home loans but face stricter Loan-to-Value (LTV) limits of up to 75% for first-time purchases, minimum cash down payments, and Total Debt Servicing Ratio (TDSR) caps at 60% of income.[1] This cluster article on Financing Options for Foreign Buyers in Singapore provides tactical steps for Korean investor guide needs, linking back to our pillar on foreign property buying. Homejourney prioritizes your safety with verified data from MAS and URA, ensuring transparent decisions in a trusted environment.
Why Financing Matters for Foreign Property Buyers in 2026
Singapore's property market remains resilient, with private homes averaging S$1.8-2.5 million in prime areas like Orchard or Marina Bay.Projects Directory Foreigners pay Additional Buyer's Stamp Duty (ABSD) at 60% for non-landed residential properties as of 2026, making efficient financing crucial to manage upfront costs.[6][7] For Korea Singapore property investors, understanding LTV and TDSR prevents over-leveraging. Homejourney's tools, like our Bank Rates page, help compare options safely without leaving a secure platform.
Core Regulations: LTV, TDSR, and Loan Tenure
The Monetary Authority of Singapore (MAS) sets LTV at 75% for foreigners' first property loan if no outstanding loans exist, dropping to 45% with one prior loan, and 35% with two.[1] TDSR limits debt payments to 60% of gross income; accredited investors may bypass this via private funders using collateral.[1] Maximum tenure is 35 years or until age 75, whichever is shorter.[1] These rules apply to condos and non-landed properties foreigners can buy freely—HDB requires approval and is rare for non-PR foreigners.
Insider Tip: Onshore foreigners (e.g., Korean expats in Singapore) need a strong Credit Bureau Singapore score; offshore applicants submit income proofs like payslips and net worth statements.[1] Always get In-Principal Approval (IPA) first via Bank Rates to lock in rates before viewing properties on Property Search .
Primary Financing Options for Foreign Buyers
Foreigners have three main paths: local bank loans, private lenders, and developer financing. Banks like DBS and OCBC offer competitive packages, but private options suit high-net-worth Korean investors.[1]
- Bank Loans: Up to 75% LTV for first loans; require FIN, passport, income docs (3-6 months payslips, tax returns), and employment pass.[1] Rates start at SORA + 1.35% for floating packages in 2026.[4]
- Private Funders: For accredited investors (net assets >S$2M or income >S$300K), up to 70% LTV with collateral like bungalows; bypasses TDSR.[1] Ideal for quick approvals (24 hours IPA).[1]
- Developer Loans: Up to 80-90% for new launches, but count toward LTV and must comply with MAS rules; shorter tenures (10-15 years).
Compare via this framework:
| Option | Max LTV | TDSR Apply? | Best For |
|---|---|---|---|
| Bank | 75% | Yes | Stable income expats |
| Private | 70% | No (accredited) | High-net-worth |
| Developer | 80-90% | Yes | New condos |
Step-by-Step Guide to Secure Financing as a Foreign Buyer
- Assess Eligibility (1-2 days): Check LTV/TDSR using Homejourney's Bank Rates calculator. Gather FIN, passport, income proofs.
- Apply for IPA (3-7 days): Submit to 2-3 banks; expect 75% LTV approval if first loan.[1]
- Property Hunt (2-4 weeks): Use Property Search for condos in Korean-friendly areas like Tanjong Pagar (5-min walk to MRT Exit A).
- Final Loan (1-2 weeks): Provide valuation report; pay downpayment (25% cash for foreigners).
- Completion (8-12 weeks): Factor ABSD payment; see our ABSD guide.
Total timeline: 2-4 months. Costs: Legal fees S$2K-5K, valuation S$500-1K, plus 1-2% agent fees.Foreign Buyers' Property Purchase Process: 8 Steps to Success
Special Considerations for Korean Buyers and Investors
Korean buyer Singapore investors favor luxury condos in District 10 (e.g., Ardmore Park, S$3M+). Banks assess KRW income via exchange rates; hedge via SGD loans. No CPF for foreigners, so full cash for ABSD (e.g., S$1.2M on S$2M condo).Korean Citizens Buying Property in Singapore: 2026 Homejourney Guide Private bridging loans suit quick flips (3-18 months, up to S$50M).[1]
Hidden Costs to Watch: Processing fees (0.5-1%), fire insurance (S$200/year), maintenance (S$400/month for mid-tier condo). Post-purchase, budget for servicing via Aircon Services .
Common Mistakes and How Homejourney Helps Avoid Them
- Ignoring TDSR: A Korean exec earning S$20K/month might qualify for S$2M loan but exceed with car loan—use our TDSR tool.[1]
- No IPA First: Prices rose 5% in 2025; lock rates early.[4]
- Overlooking Offshore Rules: Banks scrutinize foreign income; prepare 2 years' tax returns.[1]
Homejourney verifies data from URA/MAS, building trust through transparency. Disclaimer: This is general info; consult licensed advisors for personalized advice.
FAQ: Financing Options for Foreign Buyers in Singapore
Can Korean citizens get a 75% LTV loan in Singapore?
Yes, for their first property if no prior loans, subject to TDSR and credit check.[1]Korean Citizens Buying Property in Singapore: 2026 Homejourney Guide
What documents do foreign buyers need for a home loan?
FIN, passport, 3-6 months' bank statements, payslips, employment contract, and net worth proof for offshore applicants.[1]
Are private loans better for high-net-worth Korean investors?
Yes, accredited investors bypass TDSR with collateral, offering up to 70% LTV and fast approval.[1]
What's the max loan tenure for foreigners?
35 years or until age 75.[1]
Can foreigners use CPF for Singapore property?
No, CPF is for citizens/PRs only.[3]
Next Steps with Homejourney
Start safely: Use Property Search for verified listings, check rates on Bank Rates , and explore projects via Projects Directory . For the full foreign buying process, read our pillar Foreign Buyers' Property Purchase Process. Homejourney ensures secure, transparent journeys—contact us today for personalized guidance.
