Can Foreigners Get Mortgages in Singapore? The Complete Answer
Yes, foreigners can obtain mortgages in Singapore, but the process involves stricter conditions than for Singapore citizens and permanent residents.[1] While mortgage loans are legally available to non-residents, banks impose higher interest rates, lower Loan-to-Value (LTV) ratios, larger down payment requirements, and restrictions on property types.[1] Understanding these conditions and comparing rates across Singapore's major banks is essential for securing the best loan terms.
This guide walks you through foreigner mortgage eligibility requirements, helps you calculate your borrowing capacity, and shows you how to compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and other major lenders. At Homejourney, we prioritize your financial safety by providing transparent, verified information to help you make confident borrowing decisions.
Understanding Foreigner Mortgage Eligibility in Singapore
Foreigner mortgage eligibility in Singapore depends on several interconnected factors that banks evaluate individually. Unlike Singapore citizens, foreigners face a more rigorous assessment process because lenders view non-residents as higher-risk borrowers.[1] Each bank sets its own criteria, but common requirements include age limits (21-65 years), income verification, credit assessment, and minimum down payment thresholds.[1]
The most significant barrier for many foreigners is the Additional Buyer's Stamp Duty (ABSD), which adds a 60% tax on the property purchase price.[1] However, certain nationalities are exempt—Americans, for example, don't pay ABSD due to Free Trade Agreements.[1] Before calculating your borrowing power, verify whether your nationality qualifies for ABSD exemption, as this dramatically affects your total property acquisition cost.
Key Eligibility Requirements for Foreigners
- Age: Minimum 21 years old; maximum loan tenure extends to age 65[1][5]
- Income verification: Recent payslips (3 months), bank statements, and Notice of Assessment[2]
- Credit history: Good credit standing is critical—onshore foreigners must have strong local credit scores[2]
- Employment stability: Permanent employment preferred; self-employed income typically reduced by 30%[3]
- Property eligibility: Condominiums and strata-landed houses allowed; most landed properties restricted[4]
- Minimum loan amount: SGD 300,000 for private properties[5]
Loan-to-Value (LTV) Ratios: What Foreigners Can Borrow
Foreigners can access up to 75% financing on a property's purchase price through bank loans.[4] This means you'll need to provide at least 25% as a down payment. However, this maximum LTV applies to primary residences; investment properties often require larger down payments, reducing your borrowing capacity further.
To calculate your actual borrowing power, you need to understand how banks assess your income using the Total Debt Service Ratio (TDSR). Most banks limit your total monthly debt obligations (including the new mortgage) to 55% of your gross monthly income.[1] For example, if you earn SGD 8,000 monthly and have no existing debts, your maximum monthly mortgage payment would be SGD 4,400.
Use Homejourney's mortgage eligibility calculator to instantly see how much you can borrow based on your income, existing debts, and desired loan tenure. This tool factors in TDSR limits and shows you realistic borrowing scenarios before you approach banks.
Property Types Foreigners Can Purchase
Not all Singapore properties are available to foreign buyers. Understanding these restrictions prevents wasted time pursuing ineligible properties.
Eligible Properties:
- Apartment or condominium units
- Strata-landed houses within approved condominium developments
- Leasehold estates in landed residential properties (maximum 7-year lease)
- Properties on Sentosa Cove
Restricted Properties:
- HDB flats (public housing)
- Terrace houses, semi-detached houses, and bungalows
- Vacant residential land
- Most strata-landed houses outside approved developments
If you're interested in landed properties, you may apply for exemption on a case-by-case basis by demonstrating exceptional economic contribution to Singapore, though approval is rare.[4] For most foreigners, condominiums represent the most accessible and mortgage-friendly option.
Bank Rate Comparison: Finding the Best Mortgage Deal
Interest rates vary significantly across Singapore's major banks, and even a 0.2% difference translates to thousands of dollars over a 25-year loan tenure. Comparing rates from multiple lenders is essential before committing to a mortgage.
The chart below shows recent SORA (Singapore Overnight Rate Average) trends, which directly influence most mortgage rates in Singapore:
As you can see, interest rates fluctuate based on market conditions. Most Singapore banks offer either floating-rate mortgages (tied to SORA plus a bank margin) or fixed-rate mortgages (locked for 1-5 years). Floating rates are currently lower but carry refinancing risk; fixed rates provide certainty but may be higher initially.
Major Banks Offering Foreigner Mortgages
The following banks actively serve foreign borrowers in Singapore:
- DBS Bank: Competitive rates for foreigners with strong credit profiles; flexible tenure options
- OCBC Bank: Minimum loan amount SGD 200,000-300,000; various rate structures available
- UOB (United Overseas Bank): International property loan specialist; tailored for expats
- HSBC: Strong support for expatriates; multiple rate products
- Standard Chartered: Experience with non-resident borrowers; competitive pricing
- Maybank, CIMB, RHB Bank: Additional options with varying terms
Rather than visiting each bank individually, use Homejourney's bank rates comparison page to view current rates from all major lenders side-by-side. You can also submit a single application through Homejourney and receive offers from multiple banks simultaneously, saving weeks of back-and-forth communication.
Documentation Required for Foreigner Mortgage Applications
Prepare these documents before approaching banks to accelerate your approval process:[2][3]
- Valid passport and visa/Singapore residency documentation
- Last 3 months of payslips and bank statements
- Notice of Assessment (tax returns)
- NRIC or equivalent identification
- Property Option to Purchase (OTP) or Sales and Purchase Agreement
- Bank valuation report (obtained during application process)
- Proof of employment and job stability documentation
- Credit report (banks may order this)
- Mortgage Reducing Term Assurance (MRTA) insurance quote
Self-employed applicants must additionally provide business financial statements, proof of earnings, and net worth statements.[2] Banks typically reduce self-employed income by 30% when calculating borrowing capacity, so documentation must clearly demonstrate income stability.[3]
Step-by-Step Mortgage Application Process
1. Get In-Principal Approval (IPA)
Before house hunting, obtain an In-Principal Approval from your chosen bank. This pre-approval indicates the maximum loan amount you can borrow and the proposed tenure, giving you a clear budget.[3] The IPA is typically valid for 3-6 months.
2. Calculate Your Exact Borrowing Capacity
Use Homejourney's eligibility calculator to understand how TDSR limits affect your borrowing power. Input your gross monthly income, existing debts (car loans, credit cards, personal loans), desired loan tenure, and property price. The calculator instantly shows your maximum borrowable amount and monthly mortgage payment.
3. Find Your Property
Search for eligible properties within your budget using Homejourney's property search tool, which filters by property type, location, and price range. Only properties meeting foreigner eligibility criteria will appear in your results.
4. Bank Valuation
Once you've found a property and made an offer, the bank sends a valuer to assess the property's market value.[3] This typically costs SGD 300-500 and ensures the property's value justifies the loan amount.
5. Submit Complete Mortgage Application
If the valuation is satisfactory, submit your complete application with all required documents. Using Homejourney's Singpass integration, your employment and income data auto-fills, significantly reducing application time.
6. Final Approval and Loan Disbursement
Upon final approval, you'll sign loan documents and complete the property purchase. The bank disburses funds to your lawyer, who handles the property transfer.
Improving Your Foreigner Mortgage Eligibility
If your initial assessment suggests marginal approval odds, consider these strategies to strengthen your application:
Build Local Credit History
Open a Singapore bank account and maintain it actively for at least 6-12 months before applying. Use a local credit card responsibly and pay all bills on time. Banks heavily weight local credit history when assessing foreigner applications.[1]
Reduce Existing Debt
Pay down car loans, credit card balances, and personal loans before applying. Every SGD 1,000 in reduced monthly debt obligations increases your borrowing capacity by approximately SGD 18,000-20,000 (depending on your TDSR ratio).
Obtain Permanent Residency
If you're on a work pass, securing PR status significantly improves your approval odds and may unlock better interest rates.[1] PR holders often receive terms comparable to Singapore citizens.
Increase Down Payment
Providing 30-40% down payment instead of the minimum 25% demonstrates financial stability and reduces the bank's risk exposure, often resulting in better rates and faster approval.
Stabilize Employment
Remain in your current position for at least 2-3 years before applying. Frequent job changes raise red flags for lenders. If you're self-employed, maintain detailed financial records for at least 3 years to demonstrate income consistency.
For detailed strategies on boosting approval odds, see our comprehensive guide on Foreigner Mortgage Eligibility Singapore: Boost Approval Odds ">improving foreigner mortgage eligibility.
ABSD and Additional Costs to Factor In
The Additional Buyer's Stamp Duty (ABSD) represents a major cost for foreign buyers. At 60% of the property's purchase price, ABSD can add hundreds of thousands of dollars to your total acquisition cost.[1]
However, certain nationalities are exempt, including Americans, Icelanders, Liechtenstein citizens, Norwegians, and Swiss nationals.[1] Before calculating your total cost, verify your country's ABSD status.
Beyond ABSD, budget for:
- Stamp duty on the purchase agreement
- Legal fees (typically SGD 1,500-3,000)
- Bank valuation fee (SGD 300-500)
- Mortgage Reducing Term Assurance (MRTA) insurance (varies by loan amount)
- Property insurance (mandatory by banks)
- Conveyancing fees
These costs typically total 5-8% of the property price beyond your down payment, so factor them into your budget calculations.
Why Homejourney Makes Foreigner Mortgages Easier
Navigating Singapore's mortgage market as a foreigner involves complex regulations, multiple bank comparisons, and extensive documentation. Homejourney simplifies this process through:
- Bank Rates Comparison: View current rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and more in one transparent dashboard
- Mortgage Eligibility Calculator: Instantly calculate your borrowing capacity based on your income and existing debts
- Multi-Bank Application: Submit one application and receive offers from multiple banks simultaneously
- Singpass Integration: Auto-fill your employment and income data for faster processing
- SORA Rate Tracking: Monitor live 3M and 6M SORA rates to time your mortgage decision perfectly
- Expert Guidance: Connect with Homejourney Mortgage Brokers who provide personalized advice based on your situation
