Financing Options for Foreign Buyers in Singapore: Your 2026 Guide
Foreign buyers in Singapore can secure mortgages from local banks with up to 75% Loan-to-Value (LTV) ratio on their first property, subject to strict income and credit checks under TDSR rules.[1][3]
At Homejourney, we prioritize your safety by verifying the latest regulations from IRAS, MAS, and URA to help you navigate financing options for foreign buyers in Singapore transparently. This cluster focuses on tactical financing steps, linking back to our pillar Homejourney's 2026 Guide: Foreigners Buying Property in Singapore Homejourney's 2026 Guide: Foreigners Buying Property in Singapore for the full buying process.
Why Financing Matters for Foreign Buyers in 2026
Singapore's property market remains resilient with strong rental yields, but high ABSD for foreigners at 60% makes cash readiness crucial alongside loans.[1] Banks like DBS, OCBC, UOB, HSBC, Citi, and Standard Chartered offer expat-friendly packages, often SORA-linked at 0.70-1.5% spreads initially.[1]
Expect monthly repayments stress-tested at 4%, requiring gross income of at least S$14,400 for a S$1.5M loan on a S$2M condo.[1] Homejourney's verified data ensures you avoid surprises, building trust through transparency.
Key Eligibility and Limits for Foreign Mortgages
Foreigners qualify if holding Employment Pass or similar, with stable income proven by payslips, tax returns, and contracts.[1][3] No CPF usage applies, so all down payments are cash.
- LTV Limits: 75% for loans ≤30 years or age <65; drops to 55% otherwise.[1]
- TDSR: Total debt ≤55% of income; e.g., S$7,900/month needs S$14,400+ income.[1]
- Tenure: Max 30-35 years, not past age 65.[1][4]
- Minimum Loan: Often S$500K+ for international banks.[1]
Banks reject loans for properties with <30 years leasehold or trust-held assets.[4] Insider tip: EP holders from stable firms like tech multinationals in One-North get faster approvals.
ABSD and Upfront Costs Breakdown
ABSD is 60% on purchase price/valuation (whichever higher), payable within 14 days of OTP.[1] For S$2M condo: S$1.2M ABSD + 4-6% BSD + fees = ~S$1.77M cash needed beyond 25% downpayment.
| Cost Item | S$2M Condo Example |
|---|---|
| ABSD (60%) | S$1.2M |
| BSD (4-6%) | S$80K-S$120K |
| Downpayment (25% post-LTV) | S$500K |
| Total Upfront | ~S$1.77M |
Link to our ABSD Stamp Duty Calculator & Guide 2026 ABSD Stamp Duty Calculator & Guide 2026 | Homejourney for precise calculations. Note: EFTA citizens like Iceland may qualify for exemptions—see our Iceland Citizens Buying Property in Singapore: EFTA Guide Iceland Citizens Buying Property in Singapore: EFTA Guide | Homejourney .
Loan Types and Current Rates (2026)
Dominant: SORA-pegged floating (3M compounded SORA + 0.70% first 2 years, then 1.2-1.5%).[1] Fixed: 2.8-3.2% for 2-3 years.[1] No perpetual fixed rates; 'semi-fixed' means refinancing.[4]
- Local Banks (DBS/OCBC/UOB): Expat desks, streamlined for EP holders.
- International (HSBC/Citi/StanChart): Multi-currency, higher min loans.[1]
- Bridging Loans: Short-term (30 days) up to 60-80% LTV for equity release or fast buys.[2][5]
Check live rates via Homejourney's Bank Rates for safe comparisons. SORA replaced SIBOR in 2024; expect volatility.[1]
Step-by-Step Financing Process
- Pre-Approval (IPA): Submit docs (payslips, passport, contract) to 2-3 banks; 3-5 days turnaround.[1]
- Property Hunt: Use Homejourney's Property Search for verified listings matching your budget.
- OTP Exercise: Pay 5% deposit; trigger ABSD within 14 days via lawyer.[1]
- Valuation & LO: Bank vals property (1 week); sign if ≥ purchase price.[1]
- Completion: 8-12 weeks; lawyer handles mortgage docs.
Timeline: 1-2 months from IPA to funding. Pro tip: Get IPA before viewing premium condos like those in Orchard MRT (5-min walk Exit A).
Common Mistakes and How to Avoid Them
Avoid: Skipping IPA (sellers reject unproven buyers); ignoring valuation shortfalls (top-up cash); underestimating TDSR (factor all debts).[1]
- Mistake: Assuming fixed rates forever—refinance every 2-3 years.[4]
- Red Flag: Brokers pushing unverified lenders; stick to Homejourney-vetted options.
- Example: Foreigner buys S$1.8M unit in Tanjong Pagar; valuation at S$1.7M forces S$100K extra cash.
See related: Types of Properties Foreigners Can Buy Types of Properties Foreigners Can Buy in Singapore | Homejourney and Step-by-Step Property Buying Process Step-by-Step Property Buying Process for Foreigners | Homejourney .
Decision Framework: Is Local Financing Right?
| Option | Pros | Cons |
|---|---|---|
| Local Bank Mortgage | 75% LTV, competitive rates | Strict TDSR, docs heavy |
| Cash Purchase | No debt limits | Ties up capital |
| Bridging | Fast (24-48h) | High interest, short-term[2] |
Weigh income stability and timeline. Disclaimer: This is general info; consult licensed advisors for personalized advice. Homejourney verifies data for your safety.
FAQ: Financing Options for Foreign Buyers in Singapore
Can foreigners get 75% LTV loans?
Yes, for first property if tenure ≤30 years and age <65.[1][3]
What is the ABSD rate for foreigners in 2026?
60% of purchase price/valuation.[1] Use our calculator ABSD Stamp Duty Calculator & Guide 2026 | Homejourney .
Which banks are best for Iceland/EFTA buyers?
Local banks welcome them; check Iceland ABSD exemption eligibility in our EFTA guide Iceland Citizens Buying Property in Singapore: EFTA Guide | Homejourney .
How long for loan approval?
IPA: 3-5 days; full: 1-2 weeks post-OTP.[1]
Can I use bridging loans?
Yes, for quick funding up to 60-80% LTV.[2][5]
Ready to finance safely? Explore verified projects on Homejourney's Projects , compare Mortgage Rates , and search properties via Property Search . Post-purchase, maintain with Aircon Services . Start with our pillar guide Homejourney's 2026 Guide: Foreigners Buying Property in Singapore today—your trusted partner for secure Singapore property journeys.
