Can I get a mortgage for landed property in Singapore?

Yes, bank loans are available for landed property purchases in Singapore, though the financing considerations differ from those for condominiums and HDB flats. Landed property encompasses a range of types including terrace houses, semi-detached houses, detached bungalows, and Good Class Bungalows (GCBs).

The fundamental financing framework - LTV limits, TDSR, and age-based tenure restrictions - applies to landed properties just as it does to other residential property types. For a first housing loan, the maximum LTV is 75%, requiring a 25% downpayment with at least 5% in cash.

However, there are several practical differences. Landed properties are typically higher in absolute value, which means larger loan amounts and correspondingly larger downpayments and stamp duty bills. A semi-detached house in a desirable area can easily exceed S$3 million to S$5 million, requiring a downpayment of at least S$750,000 to S$1,250,000.

Banks may apply more conservative valuation approaches for landed properties, particularly for unique or heritage properties. The gap between the purchase price and the bank's valuation can sometimes be significant, meaning you may need to fund a larger portion from your own resources.

For properties requiring renovation or redevelopment, some banks offer construction loans that disburse funds progressively as construction milestones are met. This is relevant if you are purchasing a plot of land to build on or buying a property with the intention of teardown and reconstruction.

Foreign ownership restrictions apply to landed property. Under the Residential Property Act, foreigners generally cannot purchase landed property in Singapore without approval from the Singapore Land Authority. Permanent Residents may apply for approval to purchase certain categories of landed property.

Landed property loans are available from most major banks, though some banks have specialised teams or products for high-value property transactions. Working with Cashew ensures you access these specialised options and compare terms across lenders effectively.