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. Still, other lenders can extend up to 5 years or 10 years. This is different from many Western countries where rates can be fixed throughout the loan tenure.
Floating rates can be classed 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 bind their board rates to particular financial benchmarks such as the SIBOR but the right elements are often confusing and variations in board rates tend to be shifting.
There are no limits for emigrants applying for housing loans. Still, the following factors should be studied.
Loan to Value
The maximum loan to value (LTV) in Singapore is 90% of the purchase price or rating, whichever is lower. Many loaners 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% and below.
Income Proof
To have 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 respected by the local mortgage lenders.
Landed Property
The approval from Singapore Land Authority is necessary before emigrants can purchase restricted properties such as vacant land or landed properties such as bungalows, semi-detached, and terrace houses.
In-principle Approval
You may also regard an in-principle approval ahead purchasing. 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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