Tips for Emigrants Going For a Housing Loan
There are two types of housing loan packages in Singapore: fixed rates or floating (variable) rates.
Singapore fixed rate packages are commonly offered for up to 3 years, but there are some lenders that cover up to 5 years fixed rates or even 10 years. This is opposite from some Western countries where rates can be fixed throughout the loan tenure.
On the other hand, floating rates are classified 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 issued daily. Meanwhile, board rates are determined by the respective bank or financial institution. Most lenders tie their board rates to certain financial benchmarks such as the SIBOR but the correct factors are often obscure and variations in board rates tend to be ambiguous.
There are no limits for emigrants going for housing loans. However, the following elements should be taken.
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% funding 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. Tax assessments from some countries may not be honored by the local mortgage loaners.
Landed Property
The approval from Singapore Land Authority is mandatory before emigrants can buy bounded properties such as vacant estate or landed properties such as bungalows, semi-detached, and terrace houses.
In-principle Approval
Try to apply for an in-principle approval before moving with a purchase, since loan applications are more intricate for emigrants. Consider of hiring a reputable and professional housing loan consultant. This may help you save time and money with your loan approval.
Singapore fixed rate packages are commonly offered for up to 3 years, but there are some lenders that cover up to 5 years fixed rates or even 10 years. This is opposite from some Western countries where rates can be fixed throughout the loan tenure.
On the other hand, floating rates are classified 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 issued daily. Meanwhile, board rates are determined by the respective bank or financial institution. Most lenders tie their board rates to certain financial benchmarks such as the SIBOR but the correct factors are often obscure and variations in board rates tend to be ambiguous.
There are no limits for emigrants going for housing loans. However, the following elements should be taken.
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% funding 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. Tax assessments from some countries may not be honored by the local mortgage loaners.
Landed Property
The approval from Singapore Land Authority is mandatory before emigrants can buy bounded properties such as vacant estate or landed properties such as bungalows, semi-detached, and terrace houses.
In-principle Approval
Try to apply for an in-principle approval before moving with a purchase, since loan applications are more intricate for emigrants. Consider of hiring a reputable and professional housing loan consultant. This may help you save time and money with your loan approval.
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