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 cover 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. 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 particular financial bench marks, yet the precise elements are sometimes not clear and variations in board rates turn uncertain.
There are no restrictions for emigrants applying for housing loans. However, the following components should be considered.
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% funding are limited as some lenders do not offer maximum LTV to emigrants. Loan approval for 90% funding is also tighter than for LTV 80% and below.
Proof of Income
To receive approval for a housing loan your current income tax assessment or a letter of appointment from your local employer is essential. Tax assessments from some countries may not be honoured by the local mortgage loaners.
Landed Property
The commendation from Singapore Land Authority is necessary before emigrants can buy bounded properties such as vacant estate or landed properties such as bungalows, semi-detached, and terrace houses.
In-principle Approval
Try to apply for an in-principle approval before going with a purchase, since loan applications are more complex for emigrants. Consider of hiring a respected and professional housing loan consultant. This may help you save time and money with your loan approval.
Learn more about a premier housing loan advisory firm, providing housing loans with free mortgage broking. You can get a unique content version of this article from the Uber Article Directory.
categories: home loan,mortgage,my housing loan,my housing loans,my housing loan,housing loan,business,marketing,investment,financing,mortgage refinance
Article Source: Free Articles