In Singapore, housing loan packages have two categories: fixed rates or floating (variable) rates.
Singapore fixed rate packages are noramally tendered for up to 3 years, but there are some lenders that cover up to 5 years fixed rates or even 10 years. This is different 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. 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. Most lenders attach their board rates to certain financial benchmarks such as the SIBOR but the exact factors are often confusing and variations in board rates tend to be versatile.
In general, there are no confinements on emigrants obtaining 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. Some loaners do not give maximum LTV to emigrants, thus, housing loan packages for 90% financing are limited. Loan approval for 90% financing 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 asked for housing loan. Tax assessments from some countries may not be honoured by the local mortgage lenders.
Landed Property
Before an emigrant can buy restricted properties like vacant lot or landed properties such as bungalows, semi-detached, and terrace houses, the approval from Singapore Land Authority is needed.
In-principle Approval
Try to apply for an in-principle approval before carrying on with a purchase, since loan applications are more complicated for emigrants. Think of hiring a respected and professional housing loan consultant. This may help you save time and money with your loan approval.
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