How much can I borrow as an expat borrowing in SGD?

Any general questions you might have in regards to loans and finance.
Leon H
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Joined: Mon Jul 22, 2019 5:04 pm

How much can I borrow as an expat borrowing in SGD?

Postby Leon H » Mon Jul 22, 2019 5:05 pm

Hi, it’s Leon here. I am an Australian working as a lawyer in Singapore for the past 4 years. My annual income is $120,00 (SGD) and have saved $100,000 (AUD). This is my first investment property and I currently do not own any property in Australia. How much can I borrow as an expat borrowing in SGD?

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Otto Dargan
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Re: How much can I borrow as an expat borrowing in SGD?

Postby Otto Dargan » Mon Jul 22, 2019 5:13 pm

Hello Leon,

Welcome to the forums and thank you for reaching out to us.

We’re glad to let you know that Australians living outside of the country can borrow up to 90% of the property value. Some of our lenders use Singaporean tax rates when assessing your taxable income, which could improve your borrowing power.

As an expat, you can enjoy the following benefits:

  • You get the same interest rate discounts.
  • The Singaporean Dollar (SGD) is accepted/preferred by most lenders.
  • Furthermore, FIRB approval is not required.
  • You do not have to pay the foreign stamp duty surcharge normal stamp duty still applies.

Please take note of the following:

  • You will need to provide original payslips, tax returns and other documents for approval.
  • A minimum of 10% deposit and extra funds are required to cover for legal fees, mortgage costs and LMI.
  • You will also need a Power of Attorney (POA) to sign the documents in Australia on your behalf. There are lenders who will accept your family member or solicitor as a POA.
  • Your ID has to be certified at the Australia High Commission in Singapore. You might need to bear service fees (The fees can be up to a hundred dollars).

If you are an Australian expat looking to buy a property in Australia and would like to know more about how we can help, then please contact us on 1300 889 743 during business hours (+61 2 9194 1700 from outside of Australia) or enquire online.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Leon H
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Joined: Mon Jul 22, 2019 5:04 pm

Re: How much can I borrow as an expat borrowing in SGD?

Postby Leon H » Mon Jul 22, 2019 6:57 pm

Thanks for the help. I think with my employment and savings, I do have a relatively good borrowing power. Is there a cap on how much I can borrow?

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Otto Dargan
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Location: Sydney, Australia
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Re: How much can I borrow as an expat borrowing in SGD?

Postby Otto Dargan » Mon Jul 22, 2019 7:24 pm

Getting an investment property loan requires you to show that you have a high income, and the chances of getting your investment loan approved are high if you meet the following criteria:

  • You will need to show a sufficient deposit of at least 20% in most cases.
  • Lenders are favourable towards borrowers who have saved up cash as a deposit in the bank for at least 3 months.
  • Most lenders look for borrowers with a clean credit history and good credit rating.
  • You have a strong income and stable employment.

To work out how much you can borrow, you can use our borrowing power calculator. However, please note that lenders will shade your foreign income to account for exchange rate fluctuations.

You may be able to borrow up to:

  • 85% of property value if you have a strong income and stable employment. Look into the 85% investment loan option for more details.
  • 90% of property value if you have a fairly large deposit, clean credit history and an investment property that is easy to sell. Look into the 90% investment loan for more details.

A few select lenders even allow you to borrow more than 90% of property value, but this is in niche cases where a borrower can show a large deposit, perfect credit history and a good investment portfolio.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Leon H
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Joined: Mon Jul 22, 2019 5:04 pm

Re: How much can I borrow as an expat borrowing in SGD?

Postby Leon H » Mon Jul 22, 2019 7:35 pm

That’s great to know. Are there any additional or hidden costs I should know about?

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Otto Dargan
Mortgage Specialist
Posts: 7600
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How much can I borrow as an expat borrowing in SGD?

Postby Otto Dargan » Mon Jul 22, 2019 7:55 pm

The costs involved when completing a purchase of a property are:

  • Stamp duty: The stamp duty can be as high as 6% of the property value. However, this does vary according to states and territories. You can even use our stamp duty calculator to find out if you are eligible for a grant or reduced stamp duty.
  • Valuation fee: Banks require a valuation to be done on the property and they usually cost around $0 to $500. You can get a free upfront valuation with some of our lenders.
  • Loan fees: If you apply for finance, you may have to pay an application or settlement fees. The amount differs according to lenders.
  • Legal fees and conveyancing costs: These costs are payable when you invest in property.
  • Transfer fee: A government fee must be paid to register your name on the property title. This removes the vendor's name and transfers the ownership of the property.
  • Lenders Mortgage Insurance (LMI): This is only payable when you're borrowing over 80% of the property value.

You can also use our property costs calculator to work out the costs involved when completing a purchase.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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