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

Singapore fixed rate packages are commonly tendered for up to 3 years, but there are some lenders that go 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. Published rates are mainly rates that are advetised daily, case 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. Most lenders tie their board rates to certain financial bech marks such as the SIBOR but the precise elements are often vague and variations in board rates tend to be uncertain.

In general, there are no confinements on emigrants getting 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% financing 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.

Proof of Income

To have approval for a housing loan your latest income tax assessment or a letter of appointment from your local employer is necessary. Some local lenders do not respect tax assessments from other countries.

Landed Property

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

In-principle Approval

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

Learn more about a premier Housing Loan advisory firm, providing Housing Loans with free mortgage broking.

Related posts:

1. Things to Consider When Reinvesting Your Home
2. Refinancing Your Home
3. Selecting Which Type Of Interest Rate To Use – Fixed Or Variable
4. A Guide To Surviving The Housing Market With Interest Only Loans
5. The best Property In The World- The Singapore Property!

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