Step-by-Step Property Buying Process for Foreigners in Singapore
Buying property as a foreigner in Singapore takes 8–14 weeks from offer to key collection, but success depends on understanding eligibility rules, calculating the 60% Additional Buyer's Stamp Duty (ABSD), securing financing approval, and navigating legal requirements with precision. This guide walks you through each phase with actionable steps, current 2026 regulations, and insider tips to help you move confidently from shortlist to ownership—while Homejourney prioritizes your safety and transparency throughout the process.
Step 1: Verify Your Eligibility and Property Type Options
Before viewing a single property, confirm what you're legally permitted to purchase. Foreigners face distinct restrictions under Singapore's Residential Property Act, administered by the Singapore Land Authority (SLA).
Private condominiums and apartments are your most accessible option—you can purchase multi-story residential units (typically six stories or higher) without prior government approval. This category represents the vast majority of foreign residential purchases in Singapore and includes sought-after developments in Holland Village, Novena, East Coast, and River Valley.
Foreigners cannot purchase HDB flats or Executive Condominiums under any circumstances. Landed property purchases require SLA approval, which is rarely granted except for designated Sentosa Cove properties. To verify your eligibility and explore property types available to you, visit the SLA's portal at SLA GoBusiness or use Homejourney's Property Search to filter verified condominiums in foreigner-friendly districts.
Actionable tip: Start your eligibility check before you begin property hunting. This prevents wasted time viewing properties you cannot legally purchase and demonstrates seriousness to agents and sellers.
Step 2: Calculate Your Total Acquisition Cost (Including the 60% ABSD)
This is where many foreign buyers encounter shock. Singapore's 60% ABSD—unchanged since April 2023 and continuing through 2026—applies to all foreign individuals purchasing residential property, regardless of purchase price or investment horizon.
On a S$2 million condo, you will remit S$1.2 million in ABSD alone, due within 14 days of signing the Sale and Purchase Agreement or exercising your Option to Purchase. The ABSD is calculated on the purchase price or valuation, whichever is higher—meaning if the bank's valuation exceeds your offer price, you pay ABSD on the higher figure.
Beyond ABSD, budget for Buyer's Stamp Duty (BSD), legal conveyancing fees (typically S$1,500–S$3,000), property valuation (S$300–S$800), and mortgage processing fees (0.5–1% of loan amount). Use Homejourney's ABSD Stamp Duty Calculator to model your exact costs before making an offer.
Real example: A S$1.8 million condo purchase involves S$1.08 million ABSD, plus approximately S$45,000 BSD, S$2,000 legal fees, and S$10,000 mortgage fees—totaling over S$1.155 million in upfront costs beyond the purchase price itself.
Step 3: Secure In-Principle Approval (IPA) Before Making an Offer
Before making any offer, apply for In-Principle Approval with one or two banks. Submit your complete documentation package and await preliminary credit assessment. IPAs typically arrive within three to five business days for salaried expatriates with straightforward income.
Required documentation typically includes: valid passport and current visa or work pass, latest employment contract or letter of appointment, last three to six months' payslips or bank statements showing salary credits, latest Notice of Assessment from IRAS or home-country tax authority for the past two years, overseas credit report if you have borrowings or credit history outside Singapore, and bank statements from your home country evidencing savings and deposit source.
This step is non-negotiable; sellers and agents want proof you can finance before granting an Option to Purchase. IPA is valid for 30 days and gives you confidence to make an offer without risk of rejection. Explore Homejourney's bank rates page to compare financing options and current interest rates across major lenders.
Insider tip: Obtain IPA from two banks simultaneously. If one valuation comes in low, you have an alternative lender ready, avoiding delays and renegotiation.
Step 4: Negotiate and Obtain an Option to Purchase (OTP)
Once you've found your condo, negotiate price and terms with the seller's agent. The seller will draft an OTP granting you exclusive rights to buy at the agreed price for a fixed period, usually 14 or 21 days. You pay an option fee, typically 1 percent of the purchase price, which is non-refundable if you walk away but credited against the purchase price if you proceed.
The option fee is due the day you receive the signed OTP, often via cashier's order or bank transfer. This commitment signals serious intent and locks in your price. During the OTP validity period, you have the right—but not the obligation—to exercise the option by paying the balance of the deposit to bring the total to 5 percent of purchase price.
Critical action: Engage a conveyancing lawyer immediately upon receiving the signed OTP. Do not wait until you exercise the option.
Step 5: Conduct Legal Due Diligence and Review the Sale & Purchase Agreement
Within 24 hours of securing the OTP, instruct your solicitor to conduct title searches, verify encumbrances, check Management Corporation Strata Title (MCST) records for outstanding maintenance arrears or disputes, and review the draft Sale and Purchase Agreement. Singapore conveyancers are efficient; expect a preliminary report within a few days.
Your lawyer will flag red flags such as caveats on title, unpaid property tax, planning violations, or lease restrictions. If any issues surface, your lawyer will advise whether to proceed or abort before you exercise the option—protecting you from binding yourself to a problematic purchase.
Review the S&P Agreement carefully, paying attention to completion date, cooling-off period (if applicable), and any special conditions. Homejourney's safety-first approach ensures you understand every clause before committing.
Step 6: Exercise the Option to Purchase and Pay Stamp Duties
Before the option expiry date, sign the OTP acceptance and pay the balance of the deposit to bring the total to 5 percent of purchase price. At this point, you are contractually bound, and both BSD and ABSD are triggered. You have 14 days from exercising the OTP to pay stamp duties to the Inland Revenue Authority of Singapore (IRAS). Late payment incurs penalties, so coordinate closely with your lawyer who will usually handle e-stamping on your behalf.
The ABSD calculation is straightforward: 60% of the purchase price or valuation, whichever is higher. On a S$2 million property with a bank valuation of S$1.95 million, you pay ABSD on S$2 million (the higher figure). Ensure funds are available and transferred on time to avoid penalties and delays in mortgage processing.
Step 7: Finalize Mortgage Documentation and Property Valuation
Notify your bank that the OTP is exercised and provide a copy of the signed Sale and Purchase Agreement. The bank orders an independent valuation, typically completed within one week. If the valuation meets or exceeds your purchase price, the bank issues the formal Letter of Offer. Review all terms carefully: interest rates, lock-in clauses, prepayment penalties, and fee schedules.
If the valuation comes in below your purchase price, the bank lends against the lower number, meaning you must top up the shortfall in cash—a scenario that catches unprepared buyers off-guard. For example, if you offer S$2 million but the bank values the property at S$1.9 million, the bank lends 75% of S$1.9 million (S$1.425 million), requiring you to find an additional S$75,000 in cash at completion.
Sign and return the Letter of Offer promptly. The bank's solicitors will then prepare mortgage documents for execution closer to completion. This phase typically takes 7–10 days.
Step 8: Complete Legal Conveyancing and Collect Your Keys
Your lawyer and the bank's solicitors coordinate the final completion process. Funds are transferred, mortgage documents are executed, and the property is transferred to your name at the Singapore Land Authority. This typically occurs 8–12 weeks after exercising the OTP, depending on the property's status (new launch vs. resale) and any complications.
Once completion is finalized, you collect your keys from the seller or developer. Homejourney recommends conducting a final walkthrough to verify the property's condition matches the agreed state before taking possession.
Post-purchase tip: Arrange property maintenance services such as air-conditioning servicing and general inspections immediately after taking possession to ensure everything functions properly.
Common Mistakes Foreign Buyers Make—and How to Avoid Them
Mistake 1: Underestimating Total Costs Many buyers focus only on the purchase price and forget ABSD, BSD, legal fees, and valuation shortfalls. Result: insufficient funds at completion or last-minute cash injections. Prevention: Use Homejourney's cost calculator and add a 10% buffer for unexpected expenses.
Mistake 2: Skipping Legal Due Diligence Some buyers rush to exercise the OTP without legal review, only to discover title defects or MCST disputes afterward. Prevention: Engage a lawyer within 24 hours of receiving the OTP, even if it costs S$2,000 upfront. It's insurance against far costlier problems.
Mistake 3: Not Securing IPA Before Making an Offer Offers made without IPA are viewed as non-serious by sellers, and you risk losing the property if your financing falls through. Prevention: Obtain IPA from at least one bank before viewing properties seriously.
Mistake 4: Ignoring Valuation Risk Buyers assume the bank will value the property at their offer price. If valuation is lower, they lack cash to top up. Prevention: Keep 10–15% of your total budget as a valuation buffer and discuss loan-to-value limits with your bank upfront.
Key Timelines and Milestones
- IPA Application to Approval: 3–5 business days
- OTP Validity Period: 14–21 days (negotiable)
- Legal Due Diligence: 3–5 business days
- Stamp Duty Payment Deadline: 14 days from exercising OTP
- Mortgage Valuation: 5–7 business days
- Letter of Offer Issuance: 7–10 business days
- Total Timeline (OTP to Key Collection): 8–14 weeks
Special Considerations for EFTA Nationals
If you are a citizen of an EFTA nation (Norway, Iceland, Liechtenstein, or Switzerland), you may qualify for an exemption from the 60% ABSD under the Free Trade Agreement between Singapore and EFTA. This exemption can save you over S$1 million on a S$2 million purchase. Learn more in Homejourney's Norway Citizens Buying Property in Singapore guide, which details eligibility, application procedures, and documentation requirements.
Frequently Asked Questions
Q: What's the ABSD rate for foreigners in 2026?
A: 60% on the first (and any subsequent) residential property, applied to the purchase price or valuation, whichever is higher. This rate has remained unchanged since April 2023. The only exception is for EFTA nationals who qualify for the Free Trade Agreement exemption.
Q: How long does the entire process take?
A: From offer to key collection, expect 8–14 weeks. The timeline depends on whether you're buying a new launch (typically faster) or resale property, and whether any complications arise during legal due diligence or mortgage processing.
Q: Can I use CPF to buy property as a foreigner?
A: No. Only Singapore citizens and Permanent Residents can use CPF for property purchases. Foreigners must finance entirely through bank mortgages or cash.
Q: What's the maximum loan-to-value (LTV) for foreign buyers?
A: Most banks offer 75% LTV for foreign buyers, meaning you must provide a 25% down payment. Some banks may offer up to 80% LTV depending on your profile, but this is less common. Confirm LTV limits with your chosen lender when applying for IPA.
Q: What happens if the bank's valuation is lower than my offer price?
A: The bank lends against the lower valuation, requiring you to top up the shortfall in cash at completion. For example, if you offer S$2 million but the valuation is S$1.9 million, you must provide an additional S$75,000 in cash (assuming 75% LTV). This is why maintaining a valuation buffer is critical.
Q: Do I need a Singapore bank account to buy property?
A: Not necessarily, but it simplifies fund transfers and mortgage payments. Most banks require a local account for mortgage disbursement, so opening one early (often possible with your IPA application) streamlines the process.
Your Next Steps: Buy with Confidence on Homejourney
The step-by-step property buying process for foreigners in Singapore is complex, but breaking it into eight manageable phases makes it navigable. Homejourney prioritizes your safety and transparency by providing verified property data, accurate cost calculators, and clear guidance at every stage.
Start your journey today: use Homejourney's Property Search
