NAB (National Australia Bank) Singapore offers mortgages for properties located in any areas in Australia only. They are able to offer to Australians residing in Singapore, holders of Australia PR visa, Singapore citizens and Singapore PRs as long as they are not resident tax-payers in Australia. NAB mortgage products offered are pegged to their own COF (cost of funds) in Singapore or Australia dollar.
Their COF lending rates are readily available in their website: https://www.nationalaustraliabank.com/nabsingapore/en/Banking_in_singapore/private-wealth/lending_rates
Cost of Funds
NAB’s Cost of Funds means, in relation to the Facility in a particular currency for a particular period, the cost to the Bank of funding in that currency. NAB allows customer to switch 1/3/6/12 months COF at the bank’s discretion and approval.
Terms that you should watch out for
GENERAL
Subject to all preconditions to disbursement (including those stated on the Loan Contract and in the Standard Terms) being met, the Credit Facilities shall be available to the Borrower for drawdown for a period of six (6) months from the date of the Facility Letter.
Interest on the loan is calculated on a monthly rest, where the advertised rate is the same as the effective interest rate, because interest is calculated based on the reduced balance of the loan.
The Borrower is required to open a saving account with NAB Singapore for monthly debiting of the instalment.
Subject to the terms and conditions, customers shall give at least 2 weeks by way of notice to the bank before the next Funding period if they wish to vary COF to 1/3/6/12 months.
Establishment fees, valuation fees, and other fees are borne by the customer.
Switching of currency charge is at $200 per switch. Usually the first switch is free, and cost shall be incurred afterwhich. More than 5 working days notice is to be given to the bank if a switch is called upon before the end of the Funding Period.
Subject to bank’s discretion, Margin call shall be activated upon when Australia dollar depreciates from time to time.
The property must be wholly or predominantly for business or investment purposes.
REDEMPTION
Redemption of the Loan may be made subject to fulfillment of all of the following conditions: (a) served 3 months’ prior written notice or in lieu of such notice, pay the Bank 3 months’ interest, AND (b) pay the Bank a redemption fee if applicable.
REPAYMENT
Repayment is based on principal and interest. The first instalment shall commence on the date 1 month from the drawdown/ disbursement date. Payment frequency is monthly basis. NAB Singapore will facilitate with account openings in Singapore only.
PARTIAL PREPAYMENT
Partial prepayment of the Loan may be made subject to fulfillment of all of the following conditions: (a) serve the Bank 1 months’ prior written notice or in lieu of such notice, pay the Bank 1 months’ interest on the amount prepaid.