We know the weight of choices that come with owning an asset. Many of us feel the tug between growing a business and keeping control of our workspace. We have sat where you sit — wanting funds without losing long-term control.
Our role is simple: to help you unlock equity so you can expand, smooth cash flow, or reinvest in your business with confidence. In Singapore today, 50+ lenders offer deals that often reach 80%–90% LTV for owner-occupied assets, and some paths can push closer to full financing when paired with an unsecured top-up.
We explain fixed versus SORA-pegged options, typical tenors of 20–30 years, and practical steps to match a rate and term to what your business needs. Message us on WhatsApp to get tailored quotes, a side-by-side comparison, and the support to move from idea to drawdown.
Key Takeaways
- Unlock equity to fund growth, stabilise cash flow, or upgrade your workspace.
- Owner-occupied assets often qualify for higher LTVs—know your upfront cash needs.
- Choose between fixed and SORA-pegged rates based on your risk tolerance.
- Some lenders combine mortgage and unsecured top-ups to reach near-100% financing.
- We provide comparison, negotiation, and support so you can decide with confidence.
Singapore’s commercial property financing at a glance today
We simplify the market signals so you can act with clarity. Across lenders, current rate bands, LTV ranges and repayment terms shape what SMEs can realistically expect when they evaluate financing options.
What SMEs can expect now: rates, LTVs, and tenure norms
Rates today typically sit around 2.8%–3.2% p.a. Many packages are floating, quoted as a benchmark (such as 3-month SORA) plus a spread. SORA is computed daily and published by MAS by the next business day, so movements are transparent.
LTVs are assessed lender-by-lender. Owner-occupied assets often qualify for higher maximums (around 80%–90%), while investment uses tend to attract lower ranges (about 60%–70%).
Tenure norms usually span 20–30 years, though some banks list shorter or more flexible periods (one major lender shows 1–25 years). Choose a repayment period that matches your business cycle and cash flow.
Why buying over renting can bolster working capital and control
Owning can turn your site into an asset you tap later. Higher LTVs on owner-use purchases can lower upfront price pressure and free up working capital.
Compared with renting, purchase reduces landlord risk and gives you control over fit-out, storage and long-term cost predictability. That stability helps you plan hires, equipment spend, and growth.
Want a tailored snapshot? Whatsapp us to get current rate trends, personalized LTV estimates, and an indicative tenure and repayment period that fits your business and sector.
Best bank loan for commercial property options to compare
Choose a package that matches your business rhythm: steady instalments or a rate that moves with markets. We help you see trade-offs quickly so you can pick a path that protects cash flow and supports growth.
Fixed-rate packages vs SORA-pegged floating
Fixed-rate packages give predictable payments, which make budgeting simple in the first years. Many offers include short fixed periods then switch to a benchmarked rate.
SORA-pegged floating ties your rate to a transparent benchmark plus a spread. Floating can lower total cost when rates fall but adds variability you should model.
Promotions and LTV expectations
- Promotions: DBS’ SG60 online offer gives 60% off processing fees until 30 September 2025 and the Eco Renovate bundle that can fund sustainable work up to full financing when paired with your financing.
- LTV by use: Owner-occupied assets commonly see 80%–90% LTV; investment assets usually land at 60%–70%.
- Bridge to 100%: Combining an 80% mortgage with an unsecured business term loan can push total financing to 100%–120%, but expect higher interest and additional covenants.
Next step: Whatsapp us for a side-by-side comparison of packages, current rates and offers tailored to your business and asset type.
Rates, fees, and total cost: getting the lowest price over the loan’s life
A clear tally of rates, fees and subsidies helps you see which package truly costs less over time.
Typical interest rate bands today sit around 2.8%–3.2% p.a. We quantify your all‑in rate under both fixed and floating constructs so you understand true interest and payment paths.
How SORA + margin works
SORA is calculated from daily transactions and published by MAS the next business day. A floating example reads “3‑month SORA + 1% in year 1, +2% in year 2”. We model those step‑ups and show when refinancing makes sense.
Lock-ins, repricing and break costs
Lock‑in periods usually range 1–3 years. Early refinance can create break costs; sometimes repricing with your current bank is cheaper than switching lenders. We run both scenarios so you pick the lower net cost.
Fees and subsidies that change your upfront cash
We list processing, legal and valuation fees and include subsidies (some banks, including DBS, offer legal and valuation offsets). That reduces net application outlay and lowers total costs over tenure.
| Item | Impact | Example |
|---|---|---|
| Headline rate | Affects monthly pay | 2.8%–3.2% p.a. |
| Step‑up margins | Raises future interest | +1% → +2% |
| Fees & subsidies | Change drawdown cash | Legal subsidy offsets fees |
We’ll break down your total costs and negotiate on your behalf. Whatsapp us for a bank‑by‑bank fee and subsidy summary, with projected savings over your chosen tenure.
Eligibility, assessment, and documents lenders look for
Approval depends on clear evidence that your business cash flow, operating history and the asset itself line up with lender expectations. We guide you through the criteria and the exact documents that speed decisions.
Credit criteria: cash flow strength, operating track record, asset profile
Lenders prioritise reliable cash flow and two years of consistent performance. Profitability trends and liquidity ratios matter more than a single strong year.
They also assess the asset’s use, zoning and floor size. Commercial industrial assets often trigger extra checks; we match you with lenders who finance that category.
What to prepare: financials, bank statements, asset details
Compile the latest two years of financial statements and three months of business bank statements. Some lenders pull ACRA or MyInfo Business data to speed the application.
- Provide address, floor size, tenure and valuation or agreed price.
- Include an option to purchase if available; it helps bankers price efficiently.
- If an investment holding company is used, be ready to structure guarantees to manage TDSR implications.
We package your file, benchmark likely rates and fees, and reduce back-and-forth. Whatsapp us for a lender-ready checklist and hands-on support to prepare a faster application, or see guidance on how to get approved with this short guide: how to get approved.
Repayment period strategy and refinancing windows
A clear repayment plan ties your tenure to lease expiry and revenue cycles so you avoid surprise repayment spikes.
Tenure limits vs remaining lease: Maximum tenures commonly span 20–30 years, but leasehold assets must keep 5–10 years left after maturity. Short leases often force a shorter tenure and higher monthly repayment.
We map your repayment period to revenue cycles. That balances lower monthly instalments from a longer period against higher lifetime interest.
Timing your switch
Most packages carry 1–3 year lock-ins. Repricing with your current provider can cut legal fees. Switching to a different provider may secure a lower rate but needs conveyancing.
Conveyancing typically takes 2–3 months. Start the process 3–4 months before your lock-in ends to avoid overlap in payments.
- We create what‑if schedules so you protect working capital and compare total interest.
- We weigh repricing vs refinancing and include fresh subsidies and new lock‑ins.
- If a liquidity event is planned, we add prepayment flexibility to reduce interest without heavy penalties.
We’ll optimise your repayment period and build a refinance calendar synced to your lock-in — Whatsapp us for a tailored amortisation plan and timeline.
Conclusion
Good structuring reduces surprise costs and keeps your business agile when rates move. We help you choose a business property loan that unlocks working capital and preserves long‑term control.
What we do: compare packages by total costs, fees and interest rate, tailor financing for owner‑occupied and commercial industrial property, and prepare a lender‑ready pack to speed approval and drawdown.
We also set a refinance calendar near lock‑in expiry so you keep savings over the years and protect repayment capacity.
Ready to act? Whatsapp us for personalised quotes, time‑sensitive rates and end‑to‑end support from comparison to completion.
FAQ
What does "Bank Loan for Commercial Property – Unlock Property Equity" mean for my business?
It means using your commercial real estate as collateral to access capital. You convert asset value into cash to fund working capital, renovations, or expansion. We assess property value, your operating cash flow, and repayment capacity to structure a package that matches your needs while keeping payments manageable.
What are current financing conditions in Singapore for business property?
Today’s market offers a mix of fixed-rate and SORA-pegged floating packages with varying margins. Loan-to-value (LTV) ratios depend on property use and borrower profile; owner-occupied assets typically qualify for higher LTVs than pure investments. Tenures range from short-term bridge periods to long-term amortizations aligned with asset life.
How can buying a workplace or warehouse strengthen my working capital position?
Owning reduces rental volatility and builds equity you can tap into later. Lower occupancy costs over time free up operating cash. You also gain control over space and timing for upgrades that can raise asset value and rental income, supporting both cash flow and future borrowing.
Should I choose a fixed-rate package or a SORA-pegged floating rate?
Choose fixed if you want predictable payments and protection against rate rises. Pick SORA-pegged floating if you expect rates to fall or prefer lower initial pricing and more flexibility. We evaluate your cash flow stability, risk tolerance, and refinancing plans before recommending either option.
Are banks offering promotions or fee waivers right now?
Yes. Some lenders run promotions such as reduced processing fees, valuation subsidies, or renovation bundles. These can lower upfront costs and improve the effective price of financing. Always check the promotion’s eligibility, lock-in and any conditional waivers before accepting.
What LTV can I expect for owner-occupied vs investment properties?
Owner-occupied assets usually qualify for higher LTVs because of lower vacancy risk and stronger underwriting. Investment properties face tighter LTV caps due to market and tenant risk. Exact percentages vary by lender, property type and borrower financials; we help you estimate the likely LTV range.
Can a top-up unsecured term loan help me reach 100% financing?
In some cases, yes. A secured mortgage covers most of the property value while a small unsecured top-up can bridge the cash shortfall for acquisition costs or working capital. Approval depends on credit profile and overall debt servicing capacity.
What typical interest rate bands should I expect and how does SORA + margin work?
Rates vary by package, borrower risk and tenure. A SORA-based product charges the SORA reference rate plus a lender margin that reflects credit risk. Fixed-rate options lock in a single percentage for the chosen period. We compare scenarios to show total interest cost across likely rate paths.
What are lock-in periods, repricing and break costs?
Lock-in is a period where prepayment triggers a penalty or break fee. Repricing refers to a scheduled review of the margin or rate. Break costs compensate the lender for lost returns if you refinance early. Knowing these lets you time refinancing to minimize penalty exposure.
How do legal and valuation subsidies offset application fees?
Some lenders offer credits toward legal fees or pay part of the valuation cost. These subsidies reduce upfront cash outlay and make the effective application cost lower. Compare the net cost after subsidies, not just headline fees, when selecting an offer.
What credit criteria do lenders examine for a business property application?
Lenders look at cash flow strength, operating track record, management experience, credit history, and the property profile (location, tenancy, lease duration). A stable income stream and transparent accounts improve your chances and may unlock better pricing.
Which documents should I prepare before applying?
Prepare recent financial statements, corporate tax returns, bank statements, tenancy agreements, property title documents, and any valuations or lease schedules. Having complete records speeds assessment and often shortens approval to next-business-day in streamlined cases.
How should I set repayment period strategy given remaining lease or asset life?
Match tenure to the shorter of the asset’s economic life or lease term to avoid refinancing mid-lease. Longer tenures lower monthly outlay but increase total interest. We model monthly cash impact to find a balance between affordability and cost.
When is the best time to switch lenders or refinance?
Start preparing three to four months before your lock-in ends. That gives time for valuation, paperwork and comparing offers. Monitor market rates and fees so you can switch when savings exceed break costs and administrative charges.
How do I compare total cost across different financing offers?
Compare the Annual Percentage Rate (APR), all upfront fees, valuation and legal costs, any subsidy, and projected interest across your intended tenure. We recommend running a total-cost-over-tenure comparison to reveal the lowest price over the life of the financing.
