How Should Emigrants Apply for Housing Loan

In Singapore, housing loan packages have two categories: fixed rates or floating (variable) rates.

Singapore fixed rate packages are usually tendered for up to 3 years, but there are some lenders that go 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. 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 determined by the respective bank or financial institution. Many of the lenders placed their board rates to a certain financial bench marks, yet the exact components are sometimes not clear and variations in board rates turn indefinite.

In general, there are no limitations on emigrants getting 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. Many 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.

Income Proof

A letter of appointment from your local employer or your latest income tax assessment is required for housing loan. Some local lenders do not accept tax assessments from other countries.

Landed Property

The commendation from Singapore Land Authority is necessary before emigrants can buy bounded properties such as vacant estate or landed properties such as bungalows, semi-detached, and terrace houses.

In-principle Approval

Try to apply for an in-principle approval before proceeding with a purchase, since loan applications are more complex for emigrants. Consider of hiring a respected and professional housing loan consultant. This may help you save time and money with your loan approval.

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

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