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. This is unlike from some 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 published daily, case being the Singapore Interbank Offered Rate (SIBOR) or Singapore Swap Offer Rate (SOR), while board rates are set by the individual bank or financial institution. Many of the lenders placed their board rates to a certain financial bench marks, yet the accurate constituents are sometimes not clear and variations in board rates become indefinite.
In general, there are no limitations 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. Some lenders 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
To receive commnedation for a housing loan your current income tax assessment or a letter of appointment from your local employer is essential. 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 essential.
In-principle Approval
Try to apply for an in-principle approval before carrying on with a purchase, since loan applications are more complex for emigrants. Consider to hire a reputable and professional housing loan consultant. This may help you spare time and money with your loan approval.
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