How Should Emigrants Apply for Housing Loan
ByThere are two types of housing loan packages in Singapore: fixed rates or floating (variable) rates.
Singapore fixed rate packages are noramally offered for up to 3 years, but there are some lenders that go up to 5 years fixed rates or even 10 years. This is different from some 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 published daily. Meanwhile, board rates are set by the respective bank or financial institution. Most lenders attach their board rates to certain financial bech marks such as the SIBOR but the right factors are often obscure and variations in board rates tend to be uncertain.
In general, there are no limitations on emigrants having 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 rating, whichever is lower. Housing loan packages for 90% funding are limited as some lenders do not extend maximum LTV to emigrants. Loan approval for 90% financing is also tighter than for LTV 80% and below.
Proof of Income
A letter of appointment from your local employer or your latest income tax assessment is essential for housing loan. Some local lenders do not honour tax assessments from other countries.
Landed Property
The commendation from Singapore Land Authority is mandatory before emigrants can purchase restricted properties such as vacant land or landed properties such as bungalows, semi-detached, and terrace houses.
In-principle Approval
Try to apply for an in-principle approval before moving with a purchase, since loan applications are more intricate for emigrants. Think of hiring a good and professional housing loan consultant. This may help you spare time and money with your loan approval.
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