Housing Loan for Emigrants
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 offer up to 5 years or 10 years. In many Western countries, fixed rates can be made 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, example 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. Most lenders attach their board rates to particular financial bech marks such as the SIBOR but the right elements are often obscure and variations in board rates tend to be variable.
In general, there are no restrictions on emigrants starting 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. Housing loan packages for 90% funding are limited as some loaners do not provide maximum LTV to emigrants. Loan approval for 90% financing is also tighter than for LTV 80% and below.
Proof of Income
To receive approval for a housing loan your current income tax assessment or a letter of appointment from your local employer is essential. Some local lenders do not honor tax assessments from other countries.
Landed Property
The commendation from Singapore Land Authority is asked before emigrants can purchase restricted properties such as vacant land or landed properties such as bungalows, semi-detached, and terrace houses.
In-principle Approval
You may also take an in-principle approval ahead buying. Consider to hire a good and professional housing loan consultant. This may help you save time and money with your loan approval.
Find out more about a premier housing loan advisory firm, providing housing loans with free mortgage broking.
