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

Singapore fixed rate packages are noramally tendered 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 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. Published rates are mainly rates that are released daily, example being the Singapore Interbank Offered Rate (SIBOR) or Singapore Swap Offer Rate (SOR), while board rates are determined by the individual bank or financial institution. Many of the lenders set their board rates to a particular financial bench marks, yet the accurate factors are sometimes not clear and variations in board rates become indefinite.

There are no limits for emigrants applying for housing loans. Still, the following constituents should be regarded.

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% funding are limited as some loaners do not provide maximum LTV to emigrants. Loan approval for 90% funding is also tighter than for LTV 80% and below.

Proof of Income

To get commnedation for a housing loan your current income tax assessment or a letter of appointment from your local employer is necessary. Some local loaners do not honor tax assessments from other countries.

Landed Property

The approval from Singapore Land Authority is necessary before emigrants can buy bounded properties such as vacant land or landed properties such as bungalows, semi-detached, and terrace houses.

In-principle Approval

You may also look at an in-principle approval before purchasing. Consider to hire a respected and professional housing loan consultant. This may help you spare time and money with your loan approval.

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