Did you know that many small and medium businesses can borrow up to 80% of an asset’s value today, and some operating companies qualify for up to 90% LTV? That scale changes how you plan financing and monthly installments.
We start by showing what shapes your borrowing cost now. Banks price offers using a benchmark plus a margin. You’ll see what fixed and SORA-pegged choices mean for cash flow and when each protects your balance sheet.
Current market options include fixed promotions and SORA-pegged packages with tenors from 1 to 25 years. For example, DBS has a SG60 promotion with a 60% processing fee discount for online applications through 30 September 2025 — terms may change without notice.
We’ll guide you through realistic LTV ranges, typical fees, and how remaining lease years limit tenure. Use a property calculator to estimate monthly amounts before you apply. If you’d like help, Whatsapp us for a discovery session to compare lenders and map a plan tailored to your business and goals.
Key Takeaways
- Typical LTVs reach about 80%, up to 90% for some operating firms.
- Banks offer fixed and SORA-pegged structures; each affects monthly payments differently.
- DBS’s SG60 provides 60% off processing fees for online apps until 30 Sep 2025.
- Repayment terms commonly span 1–25 years and depend on lease tenure.
- Use a calculator to estimate installments and stress-test cash flow.
- Contact us via Whatsapp for tailored comparisons and next steps.
Singapore’s commercial property financing landscape today
Today’s lending market offers wide choice, but what matters most is how banks view your business and its cash flow.
Over 50 banks and financial institutions now compete, so packages, fees, and approval timelines vary. For SMEs this means you can often find a better offer by comparing appetite and pricing across lenders.
The Monetary Authority does not fix standard TDSR or LTV rules for non-residential assets. Each bank applies its own credit assessment, so strong revenue and operating history can lift LTV ceilings and improve terms.
Owner-occupiers usually access higher LTVs than investors. Typical maximum LTV ranges from 80% to 90% depending on the lender’s assessment, asset type, and remaining lease years.
- Documentation speeds approvals—have address, floor size, and purchase price or valuation ready.
- Promotions matter—look for processing fee discounts and legal or valuation subsidies.
- We’ll benchmark offers and shortlist 2–3 banks that match your profile.
Whatsapp us for a discovery session to map your options
Ready to compare fees, terms, and approval speed? Whatsapp us and we’ll translate bank jargon, prepare your application, and identify the most practical offers for your business.
| Feature | What to expect | How we help |
|---|---|---|
| Lenders | 50+ institutions with varied packages | Shortlist best-fit banks for your sector |
| LTV | Typically 80%–90%; higher for owner-occupiers | Model scenarios to reach target amount |
| Upfront costs | Processing fees; promos like 60% DBS discount | Spot promotions and negotiate subsidies |
commercial property loan interest rate singapore: what you’re really paying
We start by pointing to three simple drivers of your cost: the public benchmark, the bank margin, and contract terms such as lock-ins.
Typical ranges today
Current market yields sit around 2.8%–3.2% p.a. for many borrowers. That headline reflects a benchmark plus a spread that varies by credit profile and asset type.
Why fixed can beat floating now
Fixed packages may be cheaper this cycle because forward curves expect lower short-term figures. A 2–3 year fixed offer can lock savings and steady monthly payments.
SORA‑pegged vs fixed behaviour
SORA-pegged loans reset (commonly 3-month compounded SORA + margin). If SORA falls, your payable falls; if it rises, so do instalments. Floating suits those who accept variability for possible savings.
Lock-in periods and effective cost
Lock-ins usually run 1–3 years. Early refinance often means charges that raise your effective cost. Evaluate the blend of headline and post-lock-in terms to get a true picture.
- Tip: a 25–50 bps margin swing changes lifetime expense significantly.
- Tip: test scenarios over months and years to see cash-flow impact.
Whatsapp us for a discovery session to model fixed vs SORA-pegged scenarios for your property and cash flow.
Loan packages that fit your business: SORA-pegged and fixed options
Matching a loan package to your cash cycle can save you far more than chasing the cheapest headline figure. We focus on the choices that matter: certainty for planning or a benchmark that moves with markets.
DBS example packages illustrate two common structures. One fixes installments for the first two years so you can budget with confidence. The alternative uses 3‑month compounded SORA as published by MAS, avoiding future repapering and staying aligned to industry practice.
How banks build the all‑in figure
Banks set a transparent benchmark (like 3M SORA) plus a margin or spread. That margin can step up after promo years, so the effective rate you pay changes over the period.
- Fixed package: predictable installments in initial years—helps manage working capital and operating cycles.
- SORA‑pegged: benchmark updates regularly; you gain if market rates ease and you can tolerate variation.
- Terms to check: lock‑ins, break costs, step‑ups, and repricing windows affect total cost across years.
| Feature | Fixed (DBS) | SORA‑pegged |
|---|---|---|
| Tenor impact | Stable payments first 2 years | Payments vary with benchmark |
| Repapering | May need new docs later | No repapering under SORA |
| Best for | tight cash cycles | excess liquidity, flexible cash |
We’ll model scenarios across years, partial prepayments, and blended structures to protect capital. Whatsapp us for a discovery session to shortlist suitable packages and align repayments with your cash flow.
How much you can borrow, tenure, and repayment planning
A practical borrowing plan begins by matching the amount you need to the cash you can spare each month.
Maximum LTV typically sits between 80%–90% of valuation or purchase price for owner-occupiers, subject to credit assessment. For investment assets, expect a lower ceiling — often 60%–70% — since rental and vacancy risks matter.
Some lenders structure deals to reach effective 100%–120% financing by combining a mortgage with an unsecured business term loan. We review those setups carefully to avoid over-leverage and protect your working capital.
Tenure, repayment planning, and assessments
Typical repayment periods run from 1 to 25 years at many banks, while the market can extend to 30 years. Remaining lease years often cap the tenure—lenders usually want 5–10 years left after the loan ends.
Credit and assessment focus on revenue, operating history, cash flow, guarantors, and the asset’s location and use. These levers influence the final amount, tenure, and fees you’ll see in an application.
- Start with a target loan amount and test months of repayments across different rates.
- Prioritize a flexible repayment period if preserving working capital is critical.
- Choose a shorter period if reducing total cost of capital is your goal.
Whatsapp us for a discovery session — we’ll estimate your loan amount, set a realistic repayment period, and structure installments that protect cash flow.
Application, fees, and refinancing timing
A tidy application pack speeds approvals and can unlock fee discounts at many banks.
Streamlined steps: submit online, notify guarantors, expect a relationship manager call with a conditional offer, then sign final papers. We track status updates and pre-empt common queries to cut delays.
Documents to prepare
Bring clear property details (address, floor size, tenure, valuation or price, and any option to purchase). Add your latest two years of financials and three months of bank statements.
Processing fees and subsidies
Factor in processing fee discounts and legal or valuation subsidies. For example, DBS’s SG60 gives 60% off processing fees for online apps until 30 September 2025. Read offer terms closely; banks may change terms without prior notice.
Refinance timing and lock-in
Lock-in periods are usually 1–3 years. Early refinance often brings charges. Conveyancing for a refinance typically needs 2–3 months, so start 3–4 months before your lock-in ends.
| Step | What to expect | Timing |
|---|---|---|
| Online submission | Conditional offer within days | 1–2 weeks |
| Document checks | Valuation, financials, guarantor sign-off | 2–4 weeks |
| Completion | Sign final papers; apply fee discounts | 2–3 months |
We guide you end-to-end. Whatsapp us for a discovery session — we’ll assemble your application pack, pre-empt queries, and plan your refinancing window. Or compare an eligible offer at DBS business packages.
Conclusion
Wrap up with clear actions: plan timing, test scenarios, and pick the structure that matches your cash flow.
You now know how banks build a business property loan—benchmark plus margin—and the choice between fixed and SORA-pegged paths. Anchor decisions on total cost, not just the headline rate.
Owner-occupiers often secure higher LTV and friendlier terms than investment buyers. Map your refinancing window 3–4 months before a 1–3 year lock-in to avoid reversion spikes.
Use a property loan calculator to stress-test monthly payments across different repayment period settings and years. Whatsapp us for a discovery session—we’ll tailor a business property loan roadmap for your next property purchase and protect your working capital.
FAQ
What are typical borrowing costs for commercial property financing today?
Typical ranges are around 2.8% to 3.2% per annum for many mainstream packages. Actual pricing depends on your credit profile, loan-to-value (LTV), whether you pick a fixed or SORA-pegged option, and any promotional discounts from banks.
How do fixed packages compare to SORA-pegged options right now?
Fixed packages give predictable repayments and can be cheaper short-term when market curves are elevated. SORA-pegged loans move with the benchmark and may fall or rise as monetary conditions change. Choose fixed for budget certainty and SORA for potential savings if rates decline.
How do banks construct the final price I pay?
Lenders use a reference benchmark (like SORA) plus a margin or spread that reflects your credit, property use, and LTV. Fees, any waiver or subsidy, and the chosen lock-in also affect your effective cost.
What lock-in period should I expect and how does it affect costs?
Lock-ins commonly run 1–3 years. Breaking the lock-in often triggers prepayment penalties or break fees, which raise your effective price. Longer lock-ins can give lower headline pricing but reduce refinancing flexibility.
How much can I borrow against a commercial asset?
Typical maximum LTVs sit between 80% and 90%. Some structured deals or cashflow-backed facilities can push to 100% or more, depending on bank appetite and guarantees.
Does the use of the asset change lending terms?
Yes. Properties used for operations often attract different LTV and covenant requirements than pure investment assets. Banks assess tenant quality, lease length, and income stability when setting terms.
What tenures and repayment options are available?
Tenures commonly extend to 25–30 years where the lease remaining allows. Repayment can be principal-and-interest or interest-only for a limited period, subject to bank policy and your cashflow needs.
What factors matter most in credit assessment?
Lenders focus on revenue consistency, operating history, debt service coverage, personal and corporate credit, and the asset’s profile. Strong accounts and predictable cashflow reduce pricing and improve approval odds.
Is there a simple way to estimate monthly repayments?
Use a commercial mortgage calculator with loan amount, tenure, and chosen price (fixed or SORA plus spread). This gives a quick monthly-installment estimate to help with budgeting.
What documents should I prepare for an application?
Typical items include corporate and personal IDs, financial statements, tax returns, tenancy agreements, property title and valuation details, and business plans if relevant. Having these ready speeds processing.
What fees and subsidies should I watch for?
Expect processing fees, legal and valuation fees, and possible arrangement or package fees. Banks sometimes offer fee waivers or valuation subsidies as promotions — factor those into the effective cost.
When should I consider refinancing or repricing?
Consider repricing after lock-in expiry or when market benchmarks move significantly. Refinancing makes sense if you can lower your effective cost enough to cover exit and setup expenses, typically evaluated over 1–3 years.
How can I decide between fixed and floating if I need working capital flexibility?
If cashflow is tight and you need predictable repayments, fixed terms reduce volatility. If you have buffer cash or expect rates to ease, SORA-pegged products can offer lower initial costs and more flexible structures.
Can banks offer bespoke packages for SMEs or larger portfolios?
Yes. Many lenders tailor packages with mixed-rate tranches, staggered tenures, or combined working capital facilities for SMEs and portfolio owners. Discuss your objectives with a relationship manager to map options.
How do promotional packages from large banks like DBS typically work?
Banks may offer fixed-rate periods for the first few years or 3‑month compounded SORA structures with reduced margins. Promotions often include fee waivers or discounted legal costs; always compare the effective cost over your intended holding period.
How does lease remaining affect tenure eligibility?
Lenders limit maximum tenure based on the lease or remaining leasehold. Shorter remaining terms reduce allowable tenure and can increase the monthly repayment burden or lower maximum loan size.
