Subscribe Feed (RSS)There are two types of housing loan packages in Singapore: fixed rates or floating (variable) rates.
Fixed rates are sometimes offered for up to 3 years. However, other lenders can extend up to 5 years or 10 years. In many Western countries, fixed rates can be made throughout the loan tenure.
Floating rates can be classified into published rates or board rates. Published rates are mainly rates that are advetised daily, example being the Singapore Interbank Offered Rate (SIBOR) or Singapore Swap Offer Rate (SOR), while board rates are defined by the individual bank or financial institution. Most lenders tie their board rates to particular financial bech marks such as the SIBOR but the precise elements are often confusing and variations in board rates tend to be ambiguous.
There are no restrictions for emigrants applying for housing loans. Still, the following factors should be regarded.
Loan to Value
The maximum loan to value (LTV) in Singapore is 90% of the purchase price or valuation, whichever is lower. Housing loan packages for 90% financing are limited as some loaners do not offer maximum LTV to emigrants. Loan approval for 90% funding is also tighter than for LTV 80% and below.
Income Proof
A letter of appointment from your local employer or your latest income tax assessment is asked for housing loan. Some local lenders do not honour tax assessments from other countries.
Landed Property
Before an emigrant can purchase restricted properties like vacant lot or landed properties such as bungalows, semi-detached, and terrace houses, the commendation from Singapore Land Authority is needed.
In-principle Approval
You may also consider an in-principle approval before purchasing. Consider to hire a good and professional housing loan consultant. This may help you spare time and money with your loan approval.
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