Let’s take a deep dive to find out how foreigners buy property in Singapore and what you need to know:
1. Loan Eligibility
- Only Bank Loans: HDB loans are strictly for Singapore Citizens when they are purchasing HDB flats. Foreigners must use a bank-financed mortgage.
- Employment Status: Most banks need you to have a valid Employment Pass, S-Pass, or a similar work permit. You also need a record of 3 to 6 months of payslips. The organization may ask offshore applicants for additional proof of income and a net-worth statement.
- Credit Assessment: Your credit history will be under review. Non-residents without credit records in Singapore may face stricter checks. This could mean lower loan-to-value ratios or larger down payments when buying property.
2. Loan-to-Value (LTV) Limits
- First Bank Loan: Up to 75% LTV, meaning you can borrow up to 75% of the lower of purchase price or valuation. Non-resident foreigners may face a lower loan-to-value ratio. They might also have extra conditions from the lender. This could include needing to pledge a certain amount of deposits to the bank for security.
- Minimum Downpayment: You must pay the remaining 25% in cash.
- Second or Subsequent Loans: LTV drops to 45% (one existing loan) or 35% (two or more existing loans) under MAS rules.
3. Additional Buyer’s Stamp Duty (ABSD)
- 60% ABSD applies to all foreigners buying property in Singapore. Only foreign nationals from certain Free Trade Agreements (FTAs) are treated like Singapore Citizens for their first property purchase. These countries include the United States, Switzerland, Iceland, Norway, and Liechtenstein. Any such ABSD applies are on top of the standard Buyer’s Stamp Duty.
4. Interest Rates & Tenure
- Rates: Foreigners generally qualify for the same floating-rate (SORA-pegged) or fixed-rate packages as locals.
- Tenure: Up to 35 years for private properties, but your age + tenure must not exceed 65 to get the full LTV.
5. Documents Required
- Passport Copy
- Work Pass (EP/S-Pass)
- Payslips (last 3–6 months) and salary crediting bank statements.
- Overseas Income Proof (overseas income tax proof)
- Sale & Purchase Agreement or Option to Purchase
Key Takeaways
| Aspect | Details |
| Loan Type | Bank loan only |
| First-Loan LTV | 75% |
| Downpayment | 25% cash (No CPF unless you are SPR) |
| ABSD | 60% unless you are a foreign national (FTAs with Singapore) |
| Tenure | ≤35 years (age + tenure ≤ 65) |
| Eligibility | Must hold a valid work pass and have good credit. Authorities could subject non-resident foreigners to stricter assessment. |
Conclusion
Foreigners can secure mortgages in Singapore, but expect higher upfront cash requirements, stamp duties, and a full credit assessment. Consider engaging a leading Mortgage Brokerage firm like IQrate to assist you for ease of convenience on the process.
We can help you compare bank packages or check if you qualify for a loan. Just let us know!