How Should Emigrants Apply for Housing Loan

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

Singapore fixed rate packages are usually tendered for up to 3 years but there are some lenders that cover up to 5 years fixed rates or even 10 years. This is opposite from many 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 issued daily. Meanwhile board rates are specified by the respective bank or financial institution. Most lenders attach their board rates to certain financial benchmarks such as the SIBOR but the precise factors are often vague & variations in board rates tend to be variable.

In general there are no restrictions on emigrants getting 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. Some lenders do not give maximum LTV to emigrants thus housing loan packages for 90% financing are limited. Loan approval for 90% funding is also tighter than for LTV 80% & below.

Proof of Income

To obtain approval for a housing loan your current income tax assessment or a letter of appointment from your local employer is essential. Tax assessments from some countries may not be honoured by the local mortgage lenders.

Landed Property

Before an emigrant can purchase restricted properties like vacant lot or landed properties such as bungalows semi-detached & terrace houses the commendation from Singapore Land Authority is required.

In-principle Approval

Try to apply for an in-principle approval before moving with a purchase since loan applications are more complicated for emigrants. Consider to hire a respected & professional housing loan consultant. This may help you save time & money with your loan approval.

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