Foreign buyers not residing in the US to obtain a mortgage due to stringent bank requirements – Copen Grand EC at Tengah Garden Walk By CDL & MCL Land (Hot Launch 2022)

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Between April 2021 to March this year, foreigners bought around $59 billion ($83 billion) worth of houses in the US according to an analysis from the National Association of Realtors. The report also reveals that nearly 50% (44%) of foreign buyers purchased their homes entirely in cash. The percentage is even greater when foreign buyers don’t reside in the US. From this pool, approximately 60% are paid cash instead of making use of the mortgage.

To Donald Klip and Robert Chadwick who co-founded Singapore’s Global Mortgage Group, this is an enormous market that is not yet tapped. “Anywhere there is a need more than 90% of house purchases are made using mortgage. However, that’s not the case for foreigners who purchase US property,” Klip claims.

This is due to the fact that it’s difficult for people who are not inside the US to qualify for a mortgage because of the stringent requirements for banks The co-founders of the company say. “A large number of people don’t be eligible due to not having an US credit history or banks don’t recognise the income earned abroad,” Chadwick explains.

Plans for loans with tailored terms
To achieve this, Global Mortgage aims to provide a solution — Global Mortgage, through its 100%-owned US company, America Mortgages, provides investors outside the US to apply for an US mortgage to help finance purchases of American property.

America Mortgages acts as a intermediary between its customers with wholesale and retail lenders within the US and assists in the creation of loan programs that target non-US residents. This includes US expatriates and foreign citizens.

Through their services that are offered to foreign clients, they can get as much as 75% of the financing needed for the purchase of a property within the US with a streamlined application procedure. “We only require a note from the employer or accountant (if they’re self-employed] stating the most recent two years of their earnings, from the current year’s end the present date,” says Chadwick, who is America Mortgages’ CEO.

Starting at US$150,000, loans are available and the term options begin at five years and extending all the way until 30 years. The interest rates for mortgages are within between the 7 and 7% of a 30 year Fixed rate loan, no matter person’s age states Chadwick. He says that customers are typically able to get a loan in 30 or 45 days, and the process is carried out entirely remotely, without the customer needing to travel across the US.

Outside of the US, Global Mortgage also offers mortgage services to foreign buyers who want properties in other regions of the globe, including Canada, the UK, Canada and Australia. But, US loans make up the majority of mortgages it offers.
Expansion of business
Global Mortgage was founded not long after Klip and Chadwick -two American citizens who had moved to Singapore and met in the year 2017. Chadwick is a professional with an experience with US mortgage lending and Klip who was a managing a hedge fund shortly realized the potential to be an US mortgage broker operating in Asia that caters to foreign-owned borrowers.

The venture was started out as a pastime but it quickly gained momentum. In the year 2019, the duo obtained seed capital from Korean startup accelerator Sparklabs as well as other investors. In the years since, the business has expanded its operations and has established offices in cities like Hong Kong, Shanghai and Seoul. The company currently has around 45 employees worldwide.

Global Mortgage has also expanded its offerings. In addition to its main offering of international mortgages, the company now also provides bridging loans which are targeted at high-net worth individuals as well as accredited investors. “This is a major initiative which we’re planning to launch within Singapore,” says Klip.

He says that the service allows customers to access liquid funds quickly to finance real property transactions. “For instance, if a person is looking to make a downpayment on the property in anticipation of an increase in price prior to selling their current home It’s an extremely effective instrument,” he adds. The loans are available in the minimum of $1 million and last between 12 to 36 months. The rates of interest for these loans generally start at 7% and are typically processed in just three days according to Chadwick.