In Singapore, housing loan packages have two categories: 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 unlike 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 released daily. Meanwhile, board rates are determined by the respective bank or financial institution. Many of the lenders posted their board rates to a certain financial benchmarks, yet the right factors are sometimes not clear and variations in board rates become uncertain.

In general, there are no restrictions 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% 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 essential. Tax assessments from some countries may not be honoured by the local mortgage loaners.

Landed Property

The commendation from Singapore Land Authority is mandatory before emigrants can purchase restricted properties such as vacant estate or landed properties such as bungalows, semi-detached, and terrace houses.

In-principle Approval

You may also regard an in-principle approval before purchasing. Consider of hiring a honored and professional housing loan consultant. This may help you save time and money with your loan approval.

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