Income Tax Rates

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

Singapore fixed rate packages are usually offered for up to 3 years, but there are some lenders that extend up to 5 years fixed rates or even 10 years. This is opposite from some Western countries where rates can be fixed 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 set by the respective bank or financial institution. Most lenders attach their board rates to particular financial benchmarks such as the SIBOR but the precise elements are often unclear and variations in board rates tend to be uncertain.

In general, there are no limitations 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. Many lenders 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.

Proof of Income

To get approval for a housing loan your latest income tax assessment or a letter of appointment from your local employer is needed. Some local lenders do not respect tax assessments from other countries.

Landed Property

The approval from Singapore Land Authority is necessary before emigrants can buy restricted 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 complicated for emigrants. Consider of hiring a reputable and professional housing loan consultant. This may help you save time and money with your loan approval.