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. Still, other lenders can extend up to 5 years or 10 years. This is opposite from many Western countries where rates can be fixed throughout the loan tenure.

Floating rates can be categorized into published rates or board rates. Like Singapore Interbank Offered Rate (SIBOR) or Singapore Swap Offer Rate (SOR), published rates are normally rates that are published daily. Meanwhile, board rates are set by the respective bank or financial institution. Many of the lenders based their board rates to a particular financial bench marks, yet the precise elements are sometimes not clear and variations in board rates turn indefinite.

In general, there are no restrictions on emigrants acquiring housing loans in Singapore but do pay attention of the following.

Loan to Value

In Singapore, the maximum loan to value (LTV) is 90% of the purchase price or valuation, whichever is smaller. Housing loan packages for 90% financing are limited as some loaners do not extend maximum LTV to emigrants. Loan approval for 90% funding is also tighter than for LTV 80% and below.

Proof of Income

A letter of appointment from your local employer or your latest income tax assessment is required for housing loan. Some local loaners do not respect tax assessments from other countries.

Landed Property

The approval from Singapore Land Authority is essential before emigrants can purchase restricted properties such as vacant estate or landed properties such as bungalows, semi-detached, and terrace houses.

In-principle Approval

You may also look at an in-principle approval before purchasing. Consider of hiring a honored and professional housing loan consultant. This may help you spare time and money with your loan approval.

Learn more about a premier Housing Loan advisory firm, providing Housing Loans with free mortgage broking.

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