There are two types of housing loan packages in Singapore: fixed rates or floating (variable) rates.
Singapore fixed rate packages are noramally tendered for up to 3 years, but there are some lenders that extend up to 5 years fixed rates or even 10 years. In many Western countries, fixed rates can be made 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 determined by the respective bank or financial institution. Many of the lenders put their board rates to a certain financial bench marks, yet the right components are sometimes not clear and variations in board rates turn uncertain.
There are no limitations for emigrants applying for housing loans. Still, the following factors should be studied.
Loan to Value
In Singapore, the maximum loan to value (LTV) is 90% of the purchase price or valuation, whichever is smaller. Some 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
A letter of appointment from your local employer or your latest income tax assessment is necessary for housing loan. Tax assessments from some countries may not be respected by the local mortgage loaners.
Landed Property
The commendation from Singapore Land Authority is mandatory before emigrants can purchase bounded 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 before purchasing. Think of hiring a honored and professional housing loan consultant. This may help you spare time and money with your loan approval. - 30462
Singapore fixed rate packages are noramally tendered for up to 3 years, but there are some lenders that extend up to 5 years fixed rates or even 10 years. In many Western countries, fixed rates can be made 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 determined by the respective bank or financial institution. Many of the lenders put their board rates to a certain financial bench marks, yet the right components are sometimes not clear and variations in board rates turn uncertain.
There are no limitations for emigrants applying for housing loans. Still, the following factors should be studied.
Loan to Value
In Singapore, the maximum loan to value (LTV) is 90% of the purchase price or valuation, whichever is smaller. Some 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
A letter of appointment from your local employer or your latest income tax assessment is necessary for housing loan. Tax assessments from some countries may not be respected by the local mortgage loaners.
Landed Property
The commendation from Singapore Land Authority is mandatory before emigrants can purchase bounded 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 before purchasing. Think of hiring a honored and professional housing loan consultant. This may help you spare time and money with your loan approval. - 30462
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