Tips for Emigrants Applying a Housing Loan
There are two types of housing loan packages in Singapore: fixed rates or floating (variable) rates.
Fixed rates are sometimes extended for up to 3 years. Still, other lenders can cover up to 5 years or 10 years. In many Western countries, fixed rates can be made throughout the loan tenure.
Floating rates can be grouped 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 set by the respective bank or financial institution. Many of the lenders based their board rates to a certain financial benchmarks, yet the right factors are sometimes not clear and variations in board rates become uncertain.
In general, there are no restrictions on emigrants acquiring 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% financing are limited as some lenders do not tender maximum LTV to emigrants. Loan approval for 90% financing is also tighter than for LTV 80% and below.
Income Proof
To receive commnedation for a housing loan your latest income tax assessment or a letter of appointment from your local employer is necessary. Tax assessments from some countries may not be honoured by the local mortgage loaners.
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 required.
In-principle Approval
Try to apply for an in-principle approval before moving with a purchase, since loan applications are more complicated for emigrants. Think of hiring a reputable and professional housing loan consultant. This may help you save time and money with your loan approval.
Fixed rates are sometimes extended for up to 3 years. Still, other lenders can cover up to 5 years or 10 years. In many Western countries, fixed rates can be made throughout the loan tenure.
Floating rates can be grouped 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 set by the respective bank or financial institution. Many of the lenders based their board rates to a certain financial benchmarks, yet the right factors are sometimes not clear and variations in board rates become uncertain.
In general, there are no restrictions on emigrants acquiring 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% financing are limited as some lenders do not tender maximum LTV to emigrants. Loan approval for 90% financing is also tighter than for LTV 80% and below.
Income Proof
To receive commnedation for a housing loan your latest income tax assessment or a letter of appointment from your local employer is necessary. Tax assessments from some countries may not be honoured by the local mortgage loaners.
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 required.
In-principle Approval
Try to apply for an in-principle approval before moving with a purchase, since loan applications are more complicated for emigrants. Think 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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