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

Fixed rates are sometimes extended for up to 3 years. However, other lenders can go 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 advetised daily, example being the Singapore Interbank Offered Rate (SIBOR) or Singapore Swap Offer Rate (SOR), while board rates are decided by the individual bank or financial institution. Most lenders tie their board rates to certain financial bech marks such as the SIBOR but the right factors are often unclear and variations in board rates tend to be uncertain.

In general, there are no confinements on emigrants having 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% financing are limited as some loaners do not extend maximum LTV to emigrants. Loan approval for 90% financing is also stricter than for LTV 80% and below.

Income Proof

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

Landed Property

The commendation from Singapore Land Authority is necessary before emigrants can buy 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.

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