Singaporeans are known to be entrepreneurs who always look for new ways to invest their money and enhance their investment portfolio. They work hard all the year round and in between they also go on vacations to places around the globe. This is why many Singaporeans like to purchase properties in overseas locations such as London, Malaysia, Australia, New Zealand etc. in order to fulfil their goal of enhancing their investment portfolio and to buy a second home where they can spend their vacations from time to time. In order to help Singaporeans in achieving these goals, many banks in the island offer a home loan product called Overseas Property Loan.
What is an Overseas Property Loan?
An Overseas Property Loan is a type of home loan product that will offer you with the required finances to purchase a piece of property in an overseas location. The property that you want to purchase can either be completed or under construction and you can avail up to 70 - 80 percent of the purchase price of the property as a loan. You will need to pay the remaining 20 percent on your own and even for paying that amount, you can opt for a personal loan from a bank in case you do not have access to the required cash.
The loan amount offered can either be in Singapore Dollars or in the local currency of the overseas location where you want to purchase the property. This loan will act as a regular home loan or mortgage loan and you will be offered with attractive interest rates. The amount that you borrow will have to be paid through equated monthly instalments (EMIs) within the given repayment period. The repayment period of the loan will differ from one lender to the other and it can be up to 30 years in most cases. You will also enjoy a variety of payment options to pay off the loan amount in full.
Why Choose Overseas Property Loans in Singapore?
If you are a Singaporean who wants to purchase a property in an overseas location, you can opt for an Overseas Property Loan. Such a loan will offer you with the required finances for purchasing the home that you desire and this home will not only be a wise investment for you but it will also offer you with a place where you can spend your vacations. The amount that you can avail is quite high and so you will not face any difficulties in purchasing the home of your choice. Given that you will get a lot of flexibility in terms of the repayment period, you will not have any problem in paying off the loan amount.
List of banks offering Overseas Property Loans in Singapore
Here is a list of the banks that offer Overseas Property Loans in Singapore:
- OCBC Bank – With an OCBC Overseas Property Loan, you can purchase properties in London, Australia, Malaysia, Tokyo and New York. The minimum amount offered is S$300,000 and you will enjoy flexible tenures of up to 30 years. The loan comes with attractive interest rates and various other beneficial features. The loan is offered for both completed and/ or under construction properties. The total amount that you can avail can be as high as can be as high as 70 percent of the price of the property that you want to purchase.
- CIMB Bank – CIMB Overseas Property Loans can be ideal for those who want to purchase properties in London, Australia or Malaysia. The loan is offered for the purchase of properties that are either under construction or completed and the amount offered is in Singapore Dollars. Thus, it will be very convenient for you to keep a track of your payments and make sure that the loan is paid off in accordance with the terms and conditions given in the loan agreement. The amount offered can be as high as 80 percent of the purchase price of the property. You will need to be a citizen or a permanent resident of Singapore to apply for this loan.
- DBS Bank – Applying for a DBS Overseas Property Loan can be the ideal way to finance the purchase of a property of your choice in London and Australia. The loan amount offered can either be in Singapore Dollar or Australian Dollar for Australian properties and Singapore Dollar or Sterling Pound for London properties. You can avail up to 75 percent of the purchase price of the property as a loan and the minimum amount offered will be S$300,000. The tenure of the loan can be as high as 30 years or till the maximum age of 75 years (whichever is earlier).
- RHB Bank – If you would like to purchase a residential or commercial property in Singapore you will find RHB Overseas Property Loans very beneficial. The interest rate offered with the residential property loan can be as low as 2.88 percent per annum for the first year and the interest rate offered with the commercial property loan can be as low as 4.85 percent for the first 5 years. You should be a Citizen or a Permanent Resident of Singapore, OR a foreigner with valid work permit to apply for these loans. You should be aged 21 and above, and have a steady income in order to be eligible for these loans.
How to apply for an Overseas Property Loan?
You can visit any of the branches of these banks in order to apply for an Overseas Property Loan or you can also visit their website, mention your requirement and their customer support team will contact you soon. You will need to fill an application form and submit a signed copy of the same along with the required documents. Once you submit the loan application, the bank will process the same and either approve or reject it within a few days.
Overseas Property Loan Eligibility
You are most likely to be eligible for an Overseas Property Loan in Singapore if you meet the following eligibility criteria:
- You should be minimum 21 years old.
- You should have a steady income.
- You should be a Singaporean Citizen or a Permanent Resident.
- You can also apply for the loan if you are a foreigner with valid working permits.
Documents Required for Overseas Property Loan
You will most likely need to submit the following documents when you apply for this home loan product in Singapore:
- A copy of your NRIC (front and back)
- If you are a Salaried Employee, you will need to submit the following proof of income:
- Latest Payslip (Computerised) and Notice of Assessment for Income Tax OR
- Latest Payslip (Computerised) and latest CPF Contribution Statement for the last 12 months
- If you are a Self-Employed Individual, you will need to submit the following proof of income:
- Last 2 years Income Tax Notice of Assessment (NOA)
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