There are two types of housing loan packages in Singapore: fixed rates or floating (variable) rates.

Fixed rates are sometimes offered for up to 3 years. However, other lenders can extend up to 5 years or 10 years. In many Western countries, fixed rates can be made 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. Many of the lenders based their board rates to a particular financial bench marks, yet the precise factors are sometimes not clear and variations in board rates turn indefinite.

There are no limitations for emigrants applying for housing loans. However, the following constituents should be taken.

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% financing are limited as some loaners do not tender maximum LTV to emigrants. Loan approval for 90% funding is also tighter than for LTV 80% and below.

Income Proof

To have approval for a housing loan your latest income tax assessment or a letter of appointment from your local employer is necessary. Some local loaners do not accept tax assessments from other countries.

Landed Property

The commendation from Singapore Land Authority is asked before emigrants can purchase restricted 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 intricate for emigrants. Consider to hire a honored and professional housing loan consultant. This may help you spare time and money with your loan approval.

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