Tips for Emigrants Applying a Housing Loan

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

Singapore fixed rate packages are commonly tendered for up to 3 years, but there are some lenders that cover 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 released daily. Meanwhile, board rates are defined by the respective bank or financial institution. Many of the lenders based their board rates to a particular financial benchmarks, yet the correct constituents are sometimes not clear and variations in board rates turn uncertain.

In general, there are no confinements on emigrants acquiring 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 valuation, whichever is lower. Housing loan packages for 90% funding are limited as some loaners do not offer maximum LTV to emigrants. Loan approval for 90% financing is also tighter than for LTV 80% and below.

Proof of Income

To have commnedation 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

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

In-principle Approval

Try to apply for an in-principle approval before going with a purchase, since loan applications are more intricate for emigrants. Consider of hiring a respectable and professional housing loan consultant. This may help you spare time and money with your loan approval.

Find out more about a premier Housing Loan advisory firm, providing Housing Loans with free mortgage broking. You can get a unique content version of this article from the Uber Article Directory.