Mortgage Loan for Foreigners in Singapore

Signing housing documents

Living in Singapore and dream of owning your own home? Fret not; now, non-citizens can obtain a mortgage loan and secure their ideal home. It can be overwhelming when you intend to stay or work in a foreign country for a long term.  Especially when it comes to the loan packages and rates offered by banks or authorized moneylenders. However, finding personal loans in Singapore which best fits your needs can be confusing. Your best option in making your dream come true is a mortgage loan specially catered to foreigners living in Singapore.

What is a Foreigner Mortgage Loan?

A financial assistance system developed specifically for people like you to give monetary assistance that other institutions or banks may not provide. This will enable you to meet your financial delegations of owning a house while also keeping you from drowning. The processing fees and interest fees may differ depending on the bank or licensed moneylenders as well as the type of loans you’re considering.

Problems Faced by non-Citizens Applying for Home Loans

Most types of loans offered by financial institutions are limited to only Singaporeans or Permanent Residents (PR). We understand that foreigners may have cash flow issues and may demand personal loans in any state. Even if they have applied for the loan, the time taken for approval can be devastating.

Condominium buildings in Singapore

Why Get Home Loans in Singapore?

We understand that meeting your financial obligations with the need for quick cash can be pretty tricky if you work outside of your home country. With our flexible loan packages for non-Singaporeans, we are focused on assisting you wherever possible. If you are confident that you can repay it over a fixed period of time, our different types of loans can benefit you. Though you may face financial difficulties, these loan offers are flexible, as long as you can work out the repayment plans accordingly.

Am I Eligible?

Foreigners’ or non-residents qualifying requirements are typically more restrictive than Singaporeans’. You may be eligible for a foreigner mortgage loan if you will be residing or working in Singapore for an extended period. In general, the eligibility for obtaining a loan is relatively straightforward. When it comes to getting a home loan approved, your credit history is crucial. As an onshore foreigner, you’ll need a strong credit score to prevent getting turned down for a loan. However, financial institutions will check your qualifications based on your income evidence and net worth statement for offshore foreigners.

Discussion on housing documents

Documentations When Applying for a Foreigner Mortgage Loan

You must provide a photocopy of your passport, NRIC and property’s Option to Purchase (OTP) or Sales and Purchase Agreement during the loan application stage. On top of that, you’ll need to prepare your recently endorsed true copy of your income for proof and notice of assessment. However, if you are self-employed, you should also provide your proof of earnings and net worth statement.

As for minimum annual income, it varies from one place to another. The higher your annual income, though, the better your chances of qualifying for cheaper interest rates. Once you’ve submitted the documents required, you’ll get an In-Principle Approval (IPA). This is an official declaration of the loan amount to which you are entitled. Depending on how many housing loans you’ll be taking or currently have, the maximum loan amount and tenure varies.

Fees and Charges concerning the Home Loan

In addition to the property’s purchase price, there are fees and charges associated with buying a home. The cost varies depending on each scenario.

  • Buyer’s Stamp Duty (BSD) – Buyer’s Stamp Duty is a tax you’ll have to pay when you buy property located in Singapore. The value of this tax rate is influenced by the value of the property you invest in. In other words, the higher your property price, the higher you’ll have to pay for the tax rate. The current residential properties in Singapore are taxed at 1% for the first $180,000, 2% for the next $180,000, 3% for the next $640,000 and 4% for the remaining amount.
  • Additional Buyer’s Stamp Duty (ABSD) – On top of BSD, buyers are also required to pay the Additional Buyer’s Stamp Duty. However, this only applies to Singaporean citizens and non-citizens who wish to purchase several residential properties in Singapore. The ABSD rate differs based on your buyer profile. The rates are 5% for Singaporean PR purchasing their 1st property, 15% for Singaporean PR purchasing their 2nd or more property and 20% for foreigners buying any residential property in the country.

Securing a mortgage is a significant financial commitment that requires considerable capital expenditure and constant repayment plans on a fixed and illiquid asset. Owning real estate in Singapore is an excellent investment since historical data in a mature market regulated by higher-ups shows strong returns.

Happy couple getting their new keys for house

Entrust JD Credit for Your Foreigner Home Loan

JD Credit has offered foreigner loans in Singapore for many years. Our vision is to achieve excellence when serving customers, provide the best information, most satisfactory service for our customers, and lead in the money lending industry. Speak to us today to get low-interest loans that fit your needs!