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    Overseas Property Loan

    As the name suggests, overseas property loans are meant for customers looking to purchase a property overseas. Overseas property loans are meant for purchase of residential properties or commercial properties (the bank will specify which ones are allowed). Overseas property purchase can also be for investment purposes. Different banks offer financing for purchasing properties in select overseas locations.

    The most common locations include Malaysia, United Kingdom (London) and Australia (Melbourne, Perth and Sydney). Some banks such as OCBC offer more location options for this loan, including New York and Tokyo. UOB offers their overseas property loan for investment purposes in 5 different locations including Thailand.

    Overseas property loans are also referred to as international property loans and foreign property mortgage solutions by banks in Singapore.

    Features of Overseas Property Loans

    Here are some of the most common features associated with overseas property loans as offered by banks in Singapore:

    • Depending on the location, you can obtain up to 80% financing of the market valuation or the market price of the property, depending on whichever of the two is lower. For example, Maybank offers up to 70% financing for overseas property purchases in Malaysia and Australia and up to 80% financing for overseas property purchases in London.
    • The loan amount can be disbursed in Singapore Dollar (SGD) or the currency of the overseas location such as Sterling Pound (GBP), Australian Dollar (AUD). Other banks such as UOB also offer the loan amount in United States Dollar (USD) for property purchases made in Thailand.
    • Residential as well as commercial properties can be financed through select overseas property loans.
    • You can choose a completed property or a property still under construction to apply for this loan.
    • Tenures up to 35 years are available for this loan.
    • Banks may charge a processing fee for this type of loan.
    • Some banks offer this loan for the purpose of purchasing as well as refinancing of your existing overseas property loan.

    Benefits of Applying for Overseas Property Loans in Singapore

    Here are some reasons why opting for an overseas property loan in Singapore is a good idea:

    • By applying for the loan in Singapore, you will not be subject to foreign interest rates of the country in which you wish to purchase the property.
    • You can choose your choice of currency for loan disbursal (SGD or a foreign currency).
    • Certain banks offer you property loan calculators that allow you to calculate your TDSR (Total Debt Servicing Ratio), MSR (Mortgage Servicing Ratio), monthly instalments, and more before applying for this loan. This can come in handy to manage your finances better.

    Banks in Singapore that Offer Overseas Property Loans

    Here are some popular banks in Singapore that offer overseas property loans to customers:

    Bank Type of overseas property loan
    DBS
    • United Kingdom – London
    • Australia – Greater Melbourne, Sydney and Perth
    OCBC
    • United Kingdom – London
    • Australia – Melbourne, Sydney and Perth
    • Malaysia
    • Tokyo
    • New York
    Maybank
    • United Kingdom – London
    • Australia
    • Malaysia
    UOB
    • United Kingdom – London
    • Australia – Melbourne, Sydney and Perth
    • Japan – Fukuoka, Kyoto, Osaka, Yokohama and Tokyo
    • Thailand – Bangkok and certain upcountry locations
    • Malaysia – Penang, Klang Valley and Johor Bahru
    CIMB
    • United Kingdom – London
    • Australia
    • Malaysia
    RHB
    • Malaysia

    Eligibility Criteria for Overseas Property Loans

    If you wish to apply for an overseas property loan, you will have to fulfil certain eligibility criteria including the following:

    • You must be at least 21 years old.
    • Most overseas property loans in Singapore are applicable Singapore citizens and Permanent Residents only. However, some banks such as OCBC offer overseas property loans to foreigners who hold a valid work permit or employment pass.
    • You must meet the minimum income and minimum loan amount criteria set by the bank. Additional requirements such as minimum loan tenure may be applicable with select banks (such as DBS).

    Documents to be Submitted when Applying for an Overseas Property Loan

    Here are some important documents that you may be requested to submit when applying for this loan:

    • Identity proof documents such as your NRIC or passport copies.
    • In case you are purchasing a new property, you may be requested to provide a Property Purchase Agreement.
    • In case you are refinancing your existing loan, you may be requested to provide a loan statement of your existing overseas property loan.
    • Additional documents such as tenancy agreement may be requested.
    • Income proof documents include payslips, Income Tax Notice of Assessment, CPF statements, etc.

    How to Apply for an Overseas Property Loan in Singapore

    Here are some ways in which you can apply for an overseas property loan in Singapore:

    • Making an appointment with the bank – You can make an appointment with the bank of your choice online by visiting the bank’s website.
    • Request a call back – Some banks offer a contact form on their website wherein you will be requested to provide your personal details, contact details and indicate your time of convenience so a representative from the bank can call you regarding the loan and take the process forward.
    • Call the bank – You can call the bank on their hotline number and request for assistance regarding the application process for this loan.
    • Email the bank – Some banks offer the option of sending an email regarding the loan.
    • Visit the bank – You can visit the closest bank branch of the bank you wish to apply for this loan with, speak to a member of the staff, submit the necessary documents and apply for the loan directly in person. 
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