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.

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

Usually, when news media splashes reports on banks raising housing loan interest rates in and their affect on Monthly Installments, you may take for granted that it is better to opt for fixed home loan rates. In fact, your banker may also propose you to go for the same.

Now ideally as it should be, we take for granted that once you choose fixed rate plan for yourself the rate of interest will remain unaltered for the entire period you have fixed the interest rate for irrespective of any incidental increase in the same. But in reality this is not necessarily the case.

Here we demystify the nature of fixed interest rate housing loan transaction for you so that you can make an knowledgeable decision over the subject.

* Check the small print of a loan. The bank has the right to serve you 30 or 60-days notice that it intends to increase its rates.

* The bank’s first-year rates are binding on the bank only for that short period of 1 or 2 months. The 2nd-year home loan rates are not binding at all. Neither are the bank’s 3rd-year loan rates.

* Force Majeure Clause

So, while you read your mortgage contract, you can spot clauses like this:

“Provided further that from time to time, the bank may in its sole discretion alter the rate of interest suitably and prospectively on account of change in the internal policies or if unforeseen or extraordinary changes in the money market conditions take place during the period of the agreement.”

This is called Force Majeure Clause that enables the lender to undertake appropriate alterations in the interest rates on home loans they approve to their borrowers.

So remember to look at refinancing every couple of years so that you do not pay too much. If you select a good mortgage broker company you can save a lot of money over the life of your mortgage and in almost all cases the consultation cost is free.

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