Singapore Dollar Mortgage

Overview

The dollar (SGD) is the currency of Singapore. In view of the good reputation enjoyed by Singapore on the World's stage, its currency is seen as strong and reliable. This is also based on its steady economy through the last few decades.

Mortgage

A Singapore Dollar denominated mortgage can be arranged when the property is located in a country whose currency is the Singapore Dollar or when the borrower earns in Singapore Dollar.

Singapore Prime rate is 5.0%. However the paying rate for mortgages can be as low as half the prime rate.Such rate may vary with the country where the property is located, its loan to value ratio and the location of the lender.

Rates can be variable, tracker or fixed and the maximum ratio of loan to value that may be obtainable from lenders is 80%. Conditions may apply depending on countries and lenders. 

The granting of such mortgage may however be limited to a minimum amount of 225,000 Singapore Dollars.

Capital and Interest Only mortgages are available with a Singapore Dollar denominated mortgage. In some cases an all Interest Only mortgage may be 0.2% higher than a Capital Repayment equivalent

Switching

IMPORTANT:

In AUSTRALIA, CANADA, DUBAI, FRANCE, HONG KONG, NEW ZEALAND, PORTUGAL, SINGAPORE, SPAIN, UNITED KINGDOM (also) and UNITED STATES, The Mortgage Explorer Ltd can offer a switching  facility where a dual currency loan is granted. There are 2 free currency switches, offered per calendar year and a fee of USD150 per switch applies thereafter.

We consider such facility to be of utmost importance especially at times of great uncertainty in the currency markets. Also when/if a reduction in loan amount has been achieved through the change in exchange rate between  two currencies e.g. the currency where the property is located and the Singapore Dollar.

Please note:

Foreign exchange movements can be sudden and substantial and you must be able to tolerate a sizeable increase in your loan through such movements. At no stage should you expose yourself to high risks of foreign currency borrowings if you are not able to afford the potential losses that could result from adverse currency movements and the higher interest rate servicing costs that would be required of you due to your having a larger loan. Denominating debt in foreign currencies may not be suitable for you. If you have any doubts as to your suitability for borrowing in foreign currencies or your understanding of the risk involved, you should consult your financial adviser. Changes in the exchange rate may increase the equivalent of your debt, in whatever currency you deem important to you e.g. main income's. Your lender will not tolerate too great an increase in your loan as a result of currency losses and may opt to convert the loan back into the lender's specified base currency at a predetermined level. This may result in a permanent increase in your loan which is not fully compensated for by any other benefits. In this event, you could be left paying interest rates on a larger amount of loan than that you originally borrowed.