Many clients and parents who come to Singapore to start businesses or accompany a child who is studying in Singapore have consulted about house purchase matters. The most concerned question is whether foreigners without local income are able to obtain a housing loan and how to get loans for buying a house in Singapore?

Can foreigners buy property in Singapore?

According to relevant regulations, foreigners can apply for house purchase loans, and the loan interest rate in Singapore is relatively low. The mortgage interest rate in Singapore is about 1.2% in the first year of house purchase, which is a great advantage compared with the domestic interest rate of about 6%. Applicants’ income, assets, working age and credit history  typically considered eligibility requirements by the bank before proceeding with the loan application.

The application procedure is as follows:

①. Contact the bank loan officer.

②. Submit required documents

③. The loan application was approved

④. Sign a loan agreement

Specific loan scheme

The loan interest rate in Singapore is usually divided into fixed interest rate and floating interest rate, and the banks will have different supporting schemes for the loan whether it is fixed interest rate or floating interest rate. The following analysis focuses on how those who do not have an income in Singapore can obtain a house purchase loan through deposit guarantee.

Lending through deposit guarantees can be classified into lock-in and non-lock-in, with loans of up to 80 per cent. Banks offering such loans include OCBC, MAYBANK, UOB, etc. For example, UOB allows Chinese customers to guarantee their deposits in UOB banks in China, thus saving the trouble of transferring large sums of money to Singapore.

If it is locked in (usually for four years), the deposit guarantee is less, and if it is not locked in, the deposit fund will be larger.

For example, if an apartment of $740,000 takes an 80% loan ($590,000) from the UOB, it needs $705,000 for deposit guarantee if it is not locked in, and $212,000 for deposit guarantee if it is locked in for four years. (Note: the loan package will vary according to the age of the applicant)

Non-locked loans can be roughly divided into the following three methods:

1. If you choose to make a deposit guarantee loan in China, you need to deposit $250,000 (one year) in Singapore and $455,000 in China, and the deposit must be locked up for 3 months.

2. If you choose to make a deposit guarantee loan in Singapore, you need to make two deposits respectively at the time of application and acceptance of the loan, and at the time of the first loan issuance.

3. If you choose to make the deposit guarantee in Singapore, but the deposit is in non-Singapore currency foreign exchange, you will only need to make the deposit once when you receive the loan and issue the loan for the first time.

The specific loan package will vary according to different personal conditions. If you plan to buy a house with a loan in Singapore, we will have a loan specialist to help you provide free loan evaluation and matching calculation.

In addition, in view of the residence status problems faced by overseas buyers, especially some customers with long-term residence needs, Skyline Business Consulting Pte. Ltd. focuses on how to settle down in Singapore after buying a house and to give detailed explanations and plans. Please feel free to consult Skyline Business Consulting if you have any questions!