FAQs for Foreign Property Loans in Singapore

Overseas Real Estate - Foreign property loansCan I buy a foreign property abroad and take up a local Singapore dollar loan?

Yes you may, subject to locations, government regulations and restrictions. Locations currently offered are Australia (country wide), New Zealand (country wide), Britain (London), Japan (Tokyo), Malaysia (country wide) and the United States of America (New York and California).

 

What are the advantages of taking a Singapore dollar overseas property loan?

  • Lower interest rates due to lower Singapore dollars cost of funds.
  • Lower interest spread/margin.
  • Convenience of loan repayment in Singapore.
  • Dual capital gain from asset and currency appreciation.

 

Disadvantages of taking a Singapore dollar overseas property loan?

  • Added exposure to foreign currency risk.
  • Margin call top up may be required.
  • Lower borrowing limits and applicable Total Debt Servicing Ratios (TDSR) regulatory requirements.
  • No fixed rates.

 

Types of financing request?

  • New Purchase
  • Refinancing
  • Additional Cash Out Property Term Loan

 

Other costs to note?

Stamp duties, legal, valuation, insurance, lender’s establishment cost, notarial services fee (if any) are to be borne by borrowers.

 

Maximum quantum of finance?

Up to 80% loan to value ratio.

 

Minimum Loan amount?

In excess of $300,000 SGD. Financing request below $300,000 SGD may be considered exceptionally on a case by case basis.

 

Eligibility of application?

Singapore citizens, Singapore permanent residents and foreigners. Added restrictions may apply to foreigners and applicants not living and working in Singapore.

 

Application approval turnaround time?

From as fast as 2 working days to 1 month depending on the choice of lender.