Wednesday, September 20, 2006
[RealEdge] BT : Maybank ups home loan cap to 90%
| Published September 20, 2006  | |
| FOCUS ON FOREIGNERS | |
| Maybank ups home loan cap to 90% Move in line with Singapore strategy of attracting foreign talent
By JEAN CHUA
FOREIGNERS can now borrow up to 90 per cent of a property's value from Maybank, up from 70 per cent previously. The Malaysian bank said yesterday that the increase is part of the bank's move to be in line with the broad Singapore strategy to attract and retain foreign talent. Malaysia's biggest bank said that customers who place at least $50,000 with it or 10 per cent of the loan, whichever is lower, will be eligible for the new financing scheme. Helen Neo, Maybank head of consumer banking in Singapore, said: 'With the upcoming government initiatives such as the Personalised Employment Pass to help highly skilled foreigners become more mobile in the Singapore job market, we are optimistic that many of them will be more willing and ready to purchase homes for the long term. 'We foresee good demand for our enhanced home loan package for foreigners.' Although the bank's portfolio attributed to foreigners is currently 'modest', Ms Neo expects it to grow with this package designed for them. 'We project a threefold increase in our lending to foreigners,' she told BT, as the bank builds up its home-loan business here. The number of private homes in Singapore bought by foreigners (including permanent residents) in the second quarter of this year surged 35 per cent from the first quarter to reach 1,152, according to DTZ Debenham Tie Leung. This is the highest number of foreign purchases within a quarter in a decade. The top five nationalities were Malaysians, Indonesians, British, Indians and Chinese, the real-estate consultant said. This is the group that Maybank is targeting. The bank said that its current foreign mortgage customers are mostly Asian, who usually buy private homes in districts 9, 10 and 11. About 80 per cent of them are PMEBs (professionals, managers, executives and businessmen) and the average loan size is at least $1 million, as they tend to purchase higher end properties. 'Real estate agents like Knight Frank have noted an increase in foreign home buyers, with growing interest among Europeans in Singapore real estate,' said Ms Neo. 'Twenty-two per cent of homebuyers are foreigners. We see this trend continuing especially with the positive outlook on the luxury property market, making such properties an attractive investment tool.' Maybank also lends to Singaporeans, of which 80 per cent is for private properties and the remainder for HDB housing. For foreigners, the loan will be made at market interest rates, but the amount exceeding the 70 per cent mark will be subjected to a 0.5 per cent premium, the bank said. |
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