In Singapore, housing loan packages have two categories: fixed rates or floating (variable) rates.
Fixed rates are sometimes extended for up to 3 years. However, other lenders can cover up to 5 years or 10 years. In many Western countries, fixed rates can be made throughout the loan tenure.
On the other hand, floating rates are classified into published rates or board rates. Published rates are mainly rates that are released daily, case being the Singapore Interbank Offered Rate (SIBOR) or Singapore Swap Offer Rate (SOR), while board rates are determined by the individual bank or financial institution. Many of the lenders put their board rates to a particular financial benchmarks, yet the correct constituents are sometimes not clear and variations in board rates become uncertain.
In general, there are no limitations on emigrants having housing loans in Singapore but do pay attention of the following.
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% funding are limited as some loaners do not extend maximum LTV to emigrants. Loan approval for 90% financing 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 needed for housing loan. Some local loaners do not accept 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 asked.
In-principle Approval
You may also consider an in-principle approval ahead purchasing. Think of hiring a honored and professional housing loan consultant. This may help you save time and money with your loan approval.
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