There are two main options to choose from when getting a loan. The first is through the commercial finance sector, and the second is through the Housing Development Board (HDB). The main advantage of getting a loan through the HDB is that you may qualify for a subsidized loan if you are a first or second time home buyer.
The housing market is then broken up into two sectors, public and private housing. Public housing is regulated by the HDB, and receives the majority of government subsidies. The private sector is less regulated, but does not receive these loans as often.
When receiving a loan, the buyer has two different options for rates: fixed and variable. Fixed rates can usually only offered for up to three years, which may be a surprise if you come from a country where fixed-rate mortgages are common.. Variable rates can fluctuate on a daily basis and will be linked to the prevailing interest rate. The maximum loan given for both types of loans is for up to 90% of the value of the house. To receive the maximum loan of 90% there are stricter guidelines. It is easier and more common for foreigners to receive loans for up to 80% of the value of the house. To determine what kind of loan best suits you and if you qualify for it, we recommend visiting bank's websites for loan information. Before purchasing property you will also need approval from the Singapore Land Authority (SLA).