A step-by-step guide to securing a mortgage in Singapore
8 January 2013
Looking to buy a property in Singapore? Don’t wait until you’ve found that dream home to begin thinking about a home loan. OCBC Bank explains the basic information to know about obtaining a mortgage here.
1. Start early.
Consult a mortgage specialist early to find out your financing needs. They can also share with you the relevant regulations impacting foreigners buying property here.
2. Know the factors that affect your loan limits as an expat.
Government regulates the maximum Loan to Value (LTV) ratio at 80 percent (or 60 percent if you have an existing home loan), so you need to come up with the remaining portion from your own funds. Loan amounts for non-Singaporeans are based upon multiple factors, including:
3. Determine your loan tenure.
The maximum loan tenure is 40 years; however, the tenure can be less depending on the borrower’s age. With joint applicants, the loan tenure plus the age of the youngest borrower cannot exceed 75 years.
4. Choose your loan package.
Most banks offer three types of home loan packages: fixed, variable, and market-pegged rates. There is no interest rate volatility with fixed rate loans, but prepayments will incur penalties. Loans with variable and market-pegged rates usually allow prepayments and full loan settlement without penalty to the borrower. Make sure that you understand your needs and intentions before deciding which package is ideal for you.
Perk Alert:Some banks offer free fire insurance for the first year as well as subsidised valuation and legal fees. However, conditions may be attached to such perks. These payments will have to be fully refunded to the bank if your loan is redeemed within the claw-back period, which varies from bank to bank.
To discover how OCBC can help you achieve your dream home in Singapore, call OCBC Bank at 1800 438 6088 or visit www.ocbc.com/personal today.
The information provided herein is intended for general circulation and/or discussion purposes only. It does not take into account the financial situation or particular needs of any particular person. No representation or warranty whatsoever (including without limitation any representation or warranty as to accuracy, usefulness, adequacy, timeliness or completeness) in respect of any information (including without limitation any statement, figures, opinion, view or estimate) provided herein is given by OCBC Bank and it should not be relied upon as such. OCBC Bank does not undertake an obligation to update the information or to correct any inaccuracy that may become apparent at a later time. All information presented is subject to change without notice. OCBC Bank shall not be responsible or liable for any loss or damage whatsoever arising directly or indirectly howsoever in connection with or as a result of any person acting on any information provided herein.
Enjoy this? Get stuck into more Property
If you're about to sign a lease on a property in Singapore - read our EL panelists advice first!
Professional top tips for purchasing property in Singapore
Just across the border in Malaysia, new-build properties at Leisure Farm are being treated to the highest quality kitchens designed by Italian company Rastelli
An expat couple gives us the scoop on living in Potong Pasir, a quiet suburb that's just a few MRT stops from Dhoby Ghaut
Shamus Sillar unpacks at Wilby Bukit Timah and Orchard Scotts Residences to give us his verdict on where to stay when you're between hotel and home
Check out this stunning house if you're planning to settle down Down Under after your expatriate life in Singapore comes to an end
EL reader Gabriela Buenrostro tells us why she and her family chose this property in the heart of town
Insider expat tips on living around Lorong Chuan, with easy access to the Australian International School
Your market update, plus our pick of cool properties available across the island
Dutch expat Rolf Van der Pol drew up his own plans to redesign his family home in Joo Chiat