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 go up to 5 years or 10 years. This is different from some Western countries where rates can be fixed throughout the loan tenure.

Floating rates can be categorized 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 determined by the respective bank or financial institution. Many of the lenders put their board rates to a particular financial bench marks, yet the direct elements are sometimes not clear and variations in board rates become uncertain.

There are no limits for emigrants going for housing loans. Still, the following elements should be dealt.

Loan to Value

The maximum loan to value (LTV) in Singapore is 90% of the purchase price or rating, whichever is lower. 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 essential for housing loan. Tax assessments from some countries may not be honored by the local mortgage lenders.

Landed Property

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

In-principle Approval

Try to apply for an in-principle approval before proceeding with a purchase, since loan applications are more intricate for emigrants. Consider to hire a respectable 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. Don’t reprint this exact article. Instead, reprint a free unique content version of this same article.

categories: business,marketing,investment,financing,mortgage refinance,housing loans,home loan,mortgage,myhousingloan,myhousingloans,my housing loan