How Should Emigrants Apply for Housing Loan
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. 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 specified by the respective bank or financial institution. Many of the lenders put their board rates to a certain financial benchmarks, yet the right constituents are sometimes not clear and variations in board rates become uncertain.
There are no limits for emigrants applying for housing loans. Still, the following elements 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. Housing loan packages for 90% financing are limited as some lenders do not tender maximum LTV to emigrants. Loan approval for 90% funding is also tighter than for LTV 80% and below.
Proof of Income
A letter of appointment from your local employer or your latest income tax assessment is mandatory for housing loan. Some local lenders do not respect tax assessments from other countries.
Landed Property
The approval from Singapore Land Authority is asked 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 consider an in-principle approval before purchasing. Think of hiring a good and professional housing loan consultant. This may help you save time and money with your loan approval. - 16931
Fixed rates are sometimes extended for up to 3 years. Still, other lenders can go 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 released daily. Meanwhile, board rates are specified by the respective bank or financial institution. Many of the lenders put their board rates to a certain financial benchmarks, yet the right constituents are sometimes not clear and variations in board rates become uncertain.
There are no limits for emigrants applying for housing loans. Still, the following elements 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. Housing loan packages for 90% financing are limited as some lenders do not tender maximum LTV to emigrants. Loan approval for 90% funding is also tighter than for LTV 80% and below.
Proof of Income
A letter of appointment from your local employer or your latest income tax assessment is mandatory for housing loan. Some local lenders do not respect tax assessments from other countries.
Landed Property
The approval from Singapore Land Authority is asked 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 consider an in-principle approval before purchasing. Think of hiring a good and professional housing loan consultant. This may help you save time and money with your loan approval. - 16931
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posted by Edgar at
02:27
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