Financing from Singapore banks for non-resident foreigners
Mortgage Australia (Sydney | Melbourne | Perth | Brisbane)
MortgageWise, a boutique mortgage consultancy firm based in Singapore, now brings you exciting financing solutions from Singapore banks, for all your investment needs in Australia be it for a new purchase or remortgaging of your existing loan.
Being the shrewd international property investor that you are, where the world’s your oyster, we hope to become your valued advisor for mortgage needs in Australia, Singapore and UK.
FAQs
1. Why financing from Singapore Banks?
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- Number 1 Reason: You have a choice of financing in SGD or AUD! Notwithstanding that financing in a currency other than the currency of the purchase (or asset) carries risk, investors outside of Australia are already exposed to currency risks the moment they buy as their domiciled funds are in another currency to start with. It is the active management of this risk which can be turned in a reward, for example some Singapore banks may allow for switching of currency during the tenure of the loan. Speak to us to find out more.
- Relationship With Singapore Banks: Singapore banks are well-capitalized and Sing Dollar has long been regarded as safe haven currency in this part of the world. Global real estate investors who place AUM (assets under management) with Singapore private banks or who apply for a Preferred Banking account with min S$200,000 will open up even more leverage options for their overseas property investment. Speak to us and we will connect you to the best player for your global real estate investments and solutions.
- Getting Finance Early: Do not wait for settlement as macro environments can change resulting in banks changing their lending policies or increasing their spreads. While we cannot comment on practices elsewhere, with Australian banks now tightening on credit, our Singapore bank partners are still able to grant approvals for purchase with a much later settlement date.
2. What else you need to know?
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- Location Of Property: Generally banks in Singapore lend only for purchases in the 3 main cities of Sydney, Melbourne and Perth, with a few that include the up and coming Brisbane.
- Property Specs: The property purchased must be residential unit with internal built-in space (not including balcony, air-con ledges etc) of more than 50 sqm. For landed, financing of land with construction is not entertained. Land and house must be in one title & completed, and within the required zoning/radius of the respective bank with settlement in one single disbursement.
- Use Of Property: Strictly for buy-to-let or investment only.
- Purpose Of Loan: This can be for purchase from developers, or re-mortgaging from another bank in Australia/Singapore.
- Minimum Loan: AUD250,000
- Loan-Value-Ratio (LVR): Most banks extend up to 70% for Singapore citizens & PRs, and up to 60% for foreigners who are not residing in Australia
- Foreigner-Eligibility:
(1) You must not be a tax resident of Australia and residing in Australia. If you are an Australian citizen or PR residing outside of Australia, financing can be provided but with requirement (cannot be waived) to place AUM S$200,000 under Preferred Banking. Note withdrawal of funds after disbursement attract fall-below fees of S$50/mth.
(2) At least one of the applicants must show the minimum income of equivalent of S$100,000 p.a., else pledging of AUM funds in Sing dollar will help to this end. PRC citizens might be subjected to more stringent requirements.
(3) For foreign-income, most banks will need 6 months of computerised payslip with 6 months of matching bank statements showing salary-crediting. Tax documents will is required as a secondary check. There will be hair-cut on income that varies from bank to bank, especially for self-employed income. - TDSR (Total Debt Servicing Ratio): Singaporeans/PRs will need to show a lower required minimum income of just S$60,000 p.a. but is subject to TDSR not exceeding 60%. Hence taking a loan to finance overseas property will limit your purchasing ability for another Singapore property.
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Speak to us Today!
Speak to our dedicated team of mortgage consultants at MortgageWise.sg. We may be located physically in Singapore, but with our team of Australian property loan specialist bankers here, we are constantly connected via WhatsApp and calls and we have helped hundreds of overseas-based investors gain access to additional sources of leverage. To this end, we will endeavour to bring the best financing options to high net worth global real estate investors like yourself both in Asia or globally.
For those coming to Singapore, we do offer some incentive (shopping vouchers) when you apply for your mortgage through us. See our Rewards scheme for more details.
Get the best rates be it in SGD or AUD from Singapore lenders. We bring you the most comprehensive solutions for your Australian property financing needs