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 extend up to 5 years fixed rates or even 10 years. This is unlike from some Western countries where rates can be fixed throughout the loan tenure.
Floating rates can be categorized 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 particular financial bech marks such as the SIBOR but the exact constituents are often obscure and variations in board rates tend to be shifting.
In general, there are no confinements on emigrants obtaining 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 loaners do not tender maximum LTV to emigrants. Loan approval for 90% funding is also stricter than for LTV 80% and below.
Income Proof
To obtain commnedation for a housing loan your current income tax assessment or a letter of appointment from your local employer is needed. Tax assessments from some countries may not be respected 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 commendation from Singapore Land Authority is necessary.
In-principle Approval
You may also regard an in-principle approval before buying. Consider of hiring a respected and professional housing loan consultant. This may help you spare time and money with your loan approval.
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