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

Fixed rates are sometimes offered for up to 3 years. However, other lenders can cover up to 5 years or 10 years. This is different from many 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 released daily. Meanwhile, board rates are specified by the respective bank or financial institution. Most lenders tie their board rates to certain financial bech marks such as the SIBOR but the right factors are often confusing and variations in board rates tend to be variable.

In general, there are no restrictions on emigrants having 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. Housing loan packages for 90% funding are limited as some lenders do not offer maximum LTV to emigrants. Loan approval for 90% financing is also tighter than for LTV 80% and below.

Income Proof

To get approval for a housing loan your current income tax assessment or a letter of appointment from your local employer is necessary. Some local loaners do not honour tax assessments from other countries.

Landed Property

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

In-principle Approval

Try to apply for an in-principle approval before going 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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