Step-by-Step Property Buying Process for Foreigners | Homejourney
Foreigners can buy private condominiums and apartments in Singapore without restrictions, but must follow a precise legal process involving high ABSD rates of 60% in 2026, financing pre-approval, and conveyancing.[1][2]
This cluster article details the exact steps for a smooth transaction, building on our pillar guide Foreigners Buying Property in Singapore: Legal Process Guide 2026 | Homejourney Foreigners Buying Property in Singapore: Legal Process Guide 2026 | Homejourney . Homejourney prioritizes your safety with verified insights, helping you navigate complexities transparently.
Why the Foreign Buyer Legal Process Matters in 2026
Singapore's property market remains attractive for foreigners despite 60% ABSD on residential purchases, aimed at prioritizing locals.[1] Private condos like those in Orchard or Sentosa Cove are popular, with prices around S$2 million triggering S$1.2 million in ABSD.[1]
The process demands precision: missing stamp duty deadlines incurs penalties, and without pre-approval, sellers reject offers. Homejourney verifies market data to build your confidence, linking to our projects directory for real-time insights.
Step 1: Confirm Eligibility and Property Types
Foreigners can freely buy private condos and apartments; no government approval needed.[1][3][4] Landed properties require Land Dealings Approval Unit (LDAU) consent, rarely granted except in Sentosa Cove for owner-occupation.[3][4]
Executive Condominiums (ECs) are eligible only after 10 years from TOP.[2][3] HDB flats are off-limits unless married to a Singapore Citizen under the Non-Citizen Spouse Scheme.[2] See types details in our guide: Types of Properties Foreigners Can Buy in Singapore | Homejourney 2026 Types of Properties Foreigners Can Buy in Singapore | Homejourney 2026 .
- Insider Tip: Start with Homejourney's property search to filter foreigner-eligible condos in prime areas like District 10.
- Calculate ABSD early using our tool: ABSD Stamp Duty Calculator & Guide 2026 | Homejourney ABSD Stamp Duty Calculator & Guide 2026 | Homejourney .
Step 2: Secure In-Principle Approval (IPA) for Financing
Before offers, get IPA from banks—valid 30 days.[1] Submit passport, work pass, employment contract, 3-6 months' payslips, IRAS Notices of Assessment, and overseas credit reports.[1]
Foreigners face 60% LTV limits and TDSR checks.[1] For a S$2M condo, expect loans up to S$800K if valuation supports. Explore options in Financing Options for Foreign Buyers in Singapore | Homejourney Financing Options for Foreign Buyers in Singapore | Homejourney . Check bank rates on Homejourney.
- Choose 1-2 banks (DBS, UOB, OCBC).
- Submit docs; approval in 3-5 days for salaried expats.[1]
- IPA proves finance to sellers.
Disclaimer: Homejourney provides general guidance; consult licensed advisors for personalized advice.
Step 3: Negotiate and Obtain Option to Purchase (OTP)
Found a property? Negotiate price; pay 1% option fee for 14-21 days exclusivity.[1][2] OTP is non-refundable if you back out but credits toward purchase price.[1]
Agents draft OTP; pay via cashier's order same day.[1] For new launches, fees range 1-5%.[2] Use Homejourney's projects for under-construction timelines like TOP (25% payment) and CSC (15%).[2]
Step 4: Engage a Property Lawyer Singapore for Conveyancing
Within 24 hours of OTP, hire a conveyancing lawyer for title searches, encumbrance checks, and MCST reviews.[1] They flag issues like arrears or disputes early.
Expect preliminary report in days; review draft S&P Agreement.[1] Foreigner conveyancing adds scrutiny on Residential Properties Act compliance.[8] Homejourney recommends lawyers prioritizing transparency for your safety.
- Key Docs: Passport, IPA, OTP.
- Cost: S$2,000-S$5,000, plus disbursements.
Step 5: Exercise OTP and Pay Stamp Duties
Before expiry, sign acceptance; pay balance deposit to 5% total.[1] Triggers BSD and 60% ABSD, due within 14 days to IRAS.[1]
Lawyer handles e-stamping; late fees apply. For S$2M: ABSD S$1.2M + BSD ~S$50K.[1]
Step 6: Finalize Mortgage and Complete Transaction
Submit signed S&P to bank; valuation follows (1 week).[1] Sign Letter of Offer; bank's lawyers prepare mortgage docs.
Completion at 8-12 weeks: Pay balance, collect keys.[1][2] For new builds, keys at TOP.[2] Post-purchase, consider maintenance via aircon services.
Common Mistakes and Insider Tips
Mistake 1: Skipping IPA—sellers demand proof.[1] Tip: Get dual IPAs.
Mistake 2: Ignoring valuation gaps—top up cash if low.[1]
Mistake 3: Delaying lawyer—red flags emerge post-OTP.[1] Act in 24 hours.
Timeline: 8-12 weeks total.[2] Budget 65-70% extra for taxes on S$2M buy.[1]
Financial Breakdown for Foreigners
Purchase S$2M condo:
ABSD: S$1.2M
BSD: ~S$50K
OTP/Deposit: S$100K
Lawyer/Fees: S$10K
Total Upfront: ~S$1.36M + 5% deposit.
Financing: Max 40% LTV (S$800K).[1] No CPF for foreigners.
FAQ: Step-by-Step Property Buying Process for Foreigners
Q: How long does the foreign buyer legal process take?
A: 8-12 weeks from OTP to keys for resale; longer for new launches until TOP.[1][2]
Q: What is conveyancing for foreigners in Singapore?
A: Lawyer-led due diligence on title, debts, and compliance; essential step post-OTP.[1][8]
Q: Can foreigners get mortgages in Singapore?
A: Yes, up to 60% LTV with IPA; docs include passport and payslips.[1] See Financing Options for Foreign Buyers in Singapore 2026 Financing Options for Foreign Buyers in Singapore 2026 .
Q: What are current ABSD rates for foreigners?
A: 60% on any residential property in 2026.[1][2]
Q: Do I need approval for all properties?
A: No for condos; yes for landed (LDAU).[3][4]
Ready to start? Use Homejourney's property search and projects directory for safe, verified listings. Link back to our pillar: Foreign Buyers' Property Purchase Process: 8 Steps to Success Foreign Buyers' Property Purchase Process: 8 Steps to Success . Homejourney ensures transparent, secure journeys—begin today.
