Housing Loan for Emigrants

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

Fixed rates are sometimes extended for up to 3 years. Still, other lenders can extend up to 5 years or 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 issued daily. Meanwhile, board rates are defined 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 unclear and variations in board rates tend to be shifting.

In general, there are no confinements on emigrants obtaining housing loans in Singapore but do pay attention of the following.

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 restricted. Loan approval for 90% funding is also stricter than for LTV 80% and below.

Income Proof

A letter of appointment from your local employer or your latest income tax assessment is essential for housing loan. Tax assessments from some countries may not be honoured by the local mortgage lenders.

Landed Property

Before an emigrant can purchase restricted properties like vacant lot or landed properties such as bungalows, semi-detached, and terrace houses, the approval from Singapore Land Authority is required.

In-principle Approval

Try to apply for an in-principle approval before proceeding with a purchase, since loan applications are more complicated for emigrants. 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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