Applying for loans and failing to repay
There is nothing like being at home! The saying is so true when you are pursuing a loan in a foreign country. foreigner loan Singapore are so hard to come by. It is all about trusting each other and nowadays that is out of the window.
There are numerous cases of people applying for loans and failing to repay. It is something common, even when the lender and borrower are natives. So what do you expect when people are coming from a foreign land and applying for a loan? Lender has to keep track of the borrower during the repayment period. This becomes difficult when it is a foreigner in question. Usually foreigner loan Singapore is availed after the borrower provides some security.
Well that is not always possible in this case. Or to say the borrower has no option of providing any asset because his assets are most probably back in his hometown. The lenders will have a problem with that, as they will have no intention of running across countries to get their money back. There might be people who have come to settle in another country and acquired assets during their stay. How about now you may ask. Now the query changes to citizenship. If one is not a citizen of that country legal actions cannot be taken if the borrower is to plan a getaway with the loan amount. The complications increase as we go deeper in to the discussion.
Basically we approach the government institutions for the funding. That is where the catch lies. They insist you have citizenship and home grown assets so that they can take control of the situation. The borrower may have no intention of getting away with the foreigner loan amount. But just giving a guarantee of that sort in words or paper doesn’t get you the loan Singapore. Formalities are formalities in a government run institution.
From a third person perspective, the institution is being cautious and has the right to do so. So unless and until proper documents are set on table the loan stays in your dreams. This can be put right if you have a willing co-signer who is a native. The institution will take into account the native’s assets and that will develop their trust in you. The borrower will then have to show his credit records, current personal income and other track records. If it is deemed satisfactory then you will have the loan even before you know it. Also the assurance to make a down payment can multiply the trust in you.
These formalities can be skipped if you can make a private broker trust you and your financial capabilities. It isn’t compulsory that you have citizenship or assets. It will be enough if you can get the lender to believe you are going to repay. There are a lot of private brokers out in foreign lands who can be contacted via internet. Just send them your financial records and if they find it good you will have your foreigner loan Singapore. Down payment is mostly necessary when it comes to approaching a private broker.
So don’t be disheartened when you find a closed door when approaching on a foreigner loan. Look around because you might be standing next to a more welcoming one. It is not easy to be a foreigner wanting to buy a home without any knowledge of Singapore’s law about housing loan. The UOB offers a home loan to foreigners who wish to purchase a residential property with a maximum repayment period of 35 years or 75 years of loan tenor. Foreigners may enjoy the fixed rate, floating rate, or the pegged SIBOR packages. The UOB allows a combination of any two of the packages.
Where can a foreigner buy a home or live in Singapore?
Private housing is the most popular because there is not much restriction on foreign ownership. The most common are the condominiums and private apartments. Most come with facilities such as the tennis courts, BBQ area, and swimming pools. There are no restrictions renting landed properties in Singapore. You can rent any property you can afford. The most convenient way is to hire an agent to search the kind of apartment you like. Review the shortlist and then decide whether you should rent or buy. A foreigner may rent or buy a home anywhere as long as it complies with the RPA.
Appointing a property agent
You may want to make appointing a property agent as the first step to buying a real property. As a foreigner, it is crucial that you are familiar with the place and the regulations of the land. A legal and financial advice may be required and given by the property agent. Based on your status and needs, the property agent will search for a suitable living space for you.