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A step-by-step guide to securing a mortgage in Singapore

A step-by-step guide to securing a mortgage in Singapore 

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:

Your income: The maximum loan amount is typically based on a debt-servicing ratio of between 30 and 35 percent. Be aware that obligations, such as car loans, are taken into consideration as part of your monthly commitments.
Whether you have an existing mortgage: In order to discourage excessive borrowing, financing is generally lower for those with mortgages on other Singapore properties.
Where you live: Applicants who live in Singapore can usually obtain a larger loan than those living abroad.
Your employment history: Be prepared to provide at least two years of employment history in Singapore as well as your last income tax return (whether filed in Singapore or your home country). If you are new to Singapore, your employment status and salary will need to be verified by your employer.


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.  


Important Information

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.