There are two types of housing loan packages in Singapore: fixed rates or floating (variable) rates.
Singapore fixed rate packages are noramally 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 many 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. 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 defined by the individual bank or financial institution. Many of the lenders placed their board rates to a particular financial bench marks, yet the right elements are sometimes not clear and variations in board rates become uncertain.
There are no limits for emigrants going for housing loans. However, the following elements should be regarded.
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 lenders do not offer maximum LTV to emigrants. Loan approval for 90% funding is also stricter than for LTV 80% and below.
Income Proof
To have approval for a housing loan your current income tax assessment or a letter of appointment from your local employer is needed. Some local lenders do not honor tax assessments from other countries.
Landed Property
The commendation from Singapore Land Authority is asked before emigrants can buy restricted properties such as vacant land or landed properties such as bungalows, semi-detached, and terrace houses.
In-principle Approval
You may also consider an in-principle approval before purchasing. Think of hiring a reputable and professional housing loan consultant. This may help you spare time and money with your loan approval.
Find out more about a premier Housing Loan advisory firm, providing Housing Loans with free mortgage broking.
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