We know the weight a decision like this can carry. Many of our clients tell us they wake up thinking about cash flow, tenure, and how a bigger balance might change life at home or at work. We sit with you and break things down into clear choices.
Today’s market offers a wide spread of options, with over 50 banks and lenders providing business financing packages. Typical figures now place the commercial property loan interest range near the low 3% area, and banks often tie offers to a 3‑month benchmark plus a spread.
You will learn what affects your final quote, from benchmark moves to bank spread, and how loan amount and remaining lease shape tenure. We aim to make comparisons simple so you can pick the right fit for your business needs.
Key Takeaways
- Understand how benchmark and bank spread shape your effective cost.
- Expect published figures in the roughly 2.8%–3.2% p.a. band today.
- Many lenders offer high LTV for owner‑use but lower for investment.
- Tenure can be capped by remaining lease and affects monthly paydowns.
- Property Equity Loan helps you compare packages and avoid pitfalls.
At a glance: Today’s market for commercial property loans in Singapore
Current pricing sits in a tight range, yet lender appetite and package terms create real differences. Headline figures are helpful, but the details decide what you pay and how stable payments remain.
What you need to note now:
- ✓ Typical quoted band: 2.8%–3.2% p.a. for many packages.
- ✓ Most offers use a floating rate structure: a benchmark (3‑month SORA, FDR or board rate) + bank margin.
- ✓ Market depth: 50+ banks and FIs mean the same file can get varied offers.
Why interest rates matter now
Floating packages reprice frequently, so a higher benchmark can push your cash flow up within months.
Owner-occupiers usually secure higher LTVs (80%–90%) while investors see tighter LTV (60%–70%).
Quick contact: Whatsapp us to get latest deals from Property Equity Loan
“We scan packages across banks and present shortlists aligned to your business profile.”
| Feature | Typical Range | What to watch |
|---|---|---|
| Quoted band | 2.8%–3.2% p.a. | Package type and lock-in |
| Pricing basis | Benchmark + margin | Benchmark resets (1–3 months) |
| Lender pool | 50+ banks/FIs | Offers vary by appetite and sector |
What is a commercial property loan and how it works for businesses
A commercial property loan is a secured facility that lets a business buy, build, or refinance non‑residential real estate.
We help you understand how lenders view different assets and how packages are structured. Below are core points to read quickly and act on.
Commercial vs industrial vs retail: what lenders finance
- Covered assets: offices, retail units, and industrial space (B1 light industrial and B2 heavy industrial).
- Watch-list: JTC leasehold sites and mixed commercial/residential shophouses often face special conditions or lower appetite from some banks.
Who offers funding and how packages are built
Major banks and specialist FIs design packages around a benchmark (for example, a 3‑month SORA or a board/FDR rate) plus a margin. A lock‑in period sets early repayment terms.
“We scan packages across banks and present shortlists aligned to your business profile.”
| Item | Typical expectation | Why it matters |
|---|---|---|
| Asset classes | Office, retail, B1/B2 industrial | Determines LTV and covenants |
| Application docs | Financials, bank statements, ACRA, tenancy | Speeds approval and pricing |
| Lenders | 50+ banks & FIs | Shopping yields better terms |
Contact Property Equity Loan — Whatsapp us to get latest deals and tailored advice for your business.
Commercial property loan interest rate Singapore: current levels and rate types
Today’s pricing mixes benchmark movements with bank spreads, so your effective cost often depends on package design as much as headline numbers.
Floating rate packages charge a benchmark (for example, 3‑month SORA, FDR or a board/prime base) plus a spread. These reset at the chosen period and can move your payments quickly.
Floating rate packages explained
Example: if 3‑month SORA is 2.5% and Year 1 spread is 1.0%, your all‑in is about 3.5% p.a. If the spread widens to 2.0% in Year 2, costs rise accordingly.
Fixed packages and lock‑in periods
Fixed offers recently dipped to roughly 3.2% p.a., sometimes undercutting floating options. Lock‑ins usually run 2–3 years; they give certainty but can bring prepayment fees.
Beware the “thereafter” rate
After lock‑in some contracts revert to a board or prime level, which can exceed 5%–6% if you do nothing. Plan to reprice or refinance ahead of that period.
“We benchmark banks and package structures so your effective rate stays competitive across the life of the facility.”
| Item | Typical | Why it matters |
|---|---|---|
| Quoted band | 2.8%–3.2% p.a. | Starting point; final all‑in depends on benchmark + spread |
| Floating example | 3‑month SORA + 1% → 3.5% if SORA=2.5% | Shows how benchmark + spread combine |
| Fixed & lock‑in | ~3.2% p.a.; 2–3 years lock‑in | Certainty vs prepayment exposure |
✓ Today’s packages sit around 2.8%–3.2% p.a., but final numbers depend on benchmark choice, bank spread, and your profile.
Need help comparing offers? Whatsapp us at Property Equity Loan to get latest deals and tailored advice before your lock‑in ends.
Eligibility, LTV and loan amount: how much businesses can borrow
We review how lenders set limits so you know what to expect before you apply.
Typical LTV bands:
- Owner‑occupied purchases: 80%–90% maximum LTV.
- Investment buys: 60%–70% maximum, depending on your business strength and the asset profile.
When higher effective financing is possible
Some banks package an 80% mortgage with an unsecured business term loan to cover the balance. That can push effective financing to 100%–120%.
Use this cautiously—higher leverage raises repayment pressure and overall debt risk.
What banks look at
- Operating history, audited financials and bank statements.
- Cash flow, tenancy profile, and location of the property.
- For pure investment holding companies, lenders may apply total debt servicing checks to shareholders.
Fees, repayment period and outcomes: your years of tenure affect monthly commitments and interest paid. Expect valuation, processing and legal fees. We at Property Equity Loan can help structure financing and compare offers—Whatsapp us to get latest deals.
Loan tenure, repayment period, and leasehold constraints
Deciding on a repayment period affects both monthly cash flow and total costs. Pick a schedule that works with your expected holding period and cash plan.
Standard tenure ranges: Lenders commonly offer tenures from 5 to 30 years. For most business assets, practical maximums sit in the 20–30 years band, but the final tenure depends on borrower profile and the asset’s lease life.
How remaining lease caps tenure
Lenders often require a buffer of 5–10 years after the loan ends. If a site has only 20 years left on its term at purchase, banks may cap the tenure to 10–15 years.
That shorter tenure raises monthly payments and may shift your cash planning.
Sample installment math
Monthly payments are driven by the loan amount, the repayment period, and the applicable published pricing.
- ✓ Typical market spans: 5–30 years, with 20–30 years common for well‑profiled borrowers.
- ✓ Leasehold rule: lenders want 5–10 years of lease left after the final year of financing.
- ✓ Example impact: 20 years remaining often yields a capped tenure of 10–15 years, increasing monthly costs versus a 25–30 year schedule.
- ✓ Calculator example: with a given deposit of SGD 100,000 the illustrative monthly installment shows SGD 3,327 (indicative).
“We stress‑test tenure scenarios so you can match repayment to lease expiry and avoid cash surprises.”
| Factor | Typical | Why it matters |
|---|---|---|
| Tenure range | 5–30 years | Determines monthly instalments and total financing costs |
| Lease buffer | 5–10 years after loan end | Shorter buffer → shorter tenure → higher monthly outgo |
| Example monthly | SGD 3,327 | Illustrative with SGD 100,000 down payment |
| Strategic tip | Match tenure to exit plan | Aligns cash flow with refurbishment or sale timing |
Need tailored options? We at Property Equity Loan review your scenarios and Whatsapp us to get latest deals and clear comparisons.
Ownership structures: operating companies vs investment holding companies
Different ownership models shift risk between company and shareholder, and banks price that shift quickly.
What lenders look for
Banks usually prefer borrowers with operating records. Newly formed investment firms often face tighter underwriting. Lenders may ask the operating parent to provide a corporate guarantee to support the application.
Financing for IHCs and the need for guarantees
If an IHC lacks trading history, underwriters commonly require a corporate guarantee from an operating company. That guarantee links credit to a stronger balance sheet.
When total debt servicing checks affect shareholders
For pure holding setups, banks may apply a debt servicing ratio to individual shareholders. Heavy personal liabilities or mortgages can restrict approval and influence the final terms and interest.
Bank appetite by asset and borrower profile
Appetite varies by asset type. Offices, retail and commercial industrial property attract different pricing and covenants. Some banks avoid niche segments or ask for higher equity.
- ✓ Expect group charts, consolidated accounts and tenancy schedules with your application.
- ✓ Banks may set DSCR or interest cover covenants; we help align them to realistic cash flow.
- ✓ Operating entities may get OD facilities secured against the asset; this is less common for pure IHCs.
“We coordinate across lenders so your structure, property profile, and business plan translate into competitive terms without unnecessary delays.”
Need tailored advice? Whatsapp us at Property Equity Loan to get latest deals and structural guidance.
Total cost of financing: rates, fees, and ongoing management
Understanding the full cost of financing means looking past headline figures to the fees and ongoing management that shape your cash flow.
Upfront charges to budget for
Know your full costs: beyond published pricing and property loan interest, include legal and conveyancing fees, valuation fees, and stamp duty up to 3% for non‑residential purchases.
GST watch‑outs: if the seller is GST‑registered, GST may apply to the sale. If you are GST‑registered, you can usually claim it back after completion, but accounting timing matters.
Ongoing management and review strategy
Cheaper capital: asset‑backed financing typically carries lower interest than unsecured working capital, which improves long‑term business cash flow.
Plan repricing: fixed packages often have a 2–3 year lock‑in. Schedule repricing or refinancing reviews at least three months before expiry to avoid punitive thereafter rates.
- ✓ Factor closing fees, valuation and stamp duty into your acquisition budget.
- ✓ Check GST exposure and reclaim rules if applicable.
- ✓ Treat secured capital as lower‑cost than unsecured working capital.
- ✓ Set periodic package check‑ins to manage lifetime costs and breakage fees.
- ✓ Align rental and operating plans so income covers repayments and reserves.
| Item | Typical | Why it matters |
|---|---|---|
| Upfront fees | Legal, valuation, stamp duty | Affects initial capital outlay |
| GST treatment | Depends on seller/buyer registration | Can be claimable by GST‑registered buyers |
| Review timeline | 2–3 year lock‑ins common | Early planning avoids high thereafter fees |
“We map your 3‑ to 5‑year cost plan — fees, breakage, and repricing windows — so you always know the next best move.”
Need help? We at Property Equity Loan compare banks and packages and help you manage ongoing costs. Whatsapp us to get latest deals and a clear 3‑ to 5‑year plan.
Refinancing strategy: managing floating rate risk and “thereafter” rates
Treat the end of a lock‑in as a project: allow time for quotes, conveyancing, and switching facilities so you avoid sudden cost jumps.
Lock‑in and resets: most packages bind you for 1–3 years. After that period, contracts can revert to board or prime, which can push rates into the 5%–6%+ band.
Start planning three to four months before your expiry. Conveyancing often takes two to three months, so early action prevents last‑minute pressure.
Choices and timing
- Reprice with your current bank or refinance to another lender to keep effective rates low.
- Match the new package to your remaining repayment period and loan tenure so cash flow stays predictable.
- Some banks offer OD facilities secured on industrial or commercial industrial assets for operating companies; this can smooth working capital.
“We compare banks and packages end‑to‑end so you don’t miss windows or pay avoidable costs.”
Need help? Whatsapp us to get latest deals—Property Equity Loan manages the process so you keep control and avoid punitive thereafter pricing.
Conclusion
Deciding on the right financing package means weighing monthly cash flow against long‑term cost and exit timing. Banks typically offer 80%–90% LTV for owner‑use and 60%–70% for investment. Today’s published pricing sits near 2.8%–3.2% p.a., and lock‑ins often run 2–3 years.
Key takeaways:
✓ Understand package components, LTV limits, and lock‑in to keep a sustainable loan interest rate over the full term.
✓ Match structure to your business property needs—cash flow, capex, and exit—rather than chasing headline rates.
✓ Plan ahead: start refinancing 3–4 months before a lock‑in ends to avoid sharp thereafter jumps (often 5%–6%+). Right‑sized tenure balances monthly affordability and total capital cost.
Next steps: Share your application documents and asset details. We will map fixed vs floating options and a shortlist across banks.
Whatsapp us to get latest deals — Property Equity Loan
FAQ
What affects today’s market for commercial property loans in Singapore?
Several factors move pricing: the global monetary environment, Monetary Authority of Singapore guidance, bank funding costs, and local demand for office, retail, and industrial assets. Lenders also price in borrower credit, lease length, and expected rental income. We monitor these to match you with suitable packages.
Why do interest rates matter now for business borrowers?
Rates determine monthly cashflow and total cost over the term. A small change in the all‑in price can alter feasibility for an acquisition or refinance. Floating vs fixed choices affect predictability and risk. We help you weigh immediate savings against long‑term exposure.
How can I get the latest deals quickly?
Whatsapp is often the fastest route. Send your basic details, property type, and target amount and we’ll pull live offers from banks and financial institutions. We can then arrange quotes and documentation checklists to speed up approval.
What exactly is a commercial property loan and how does it work for businesses?
It’s financing secured by non‑residential real estate used for operations or investment. You pledge the asset, agree a tenure and repayment schedule, and the lender assesses cashflow and value. Disbursement follows valuation and legal checks, and periodic reviews may apply.
What’s the difference between industrial, retail, and office financing?
Lenders segment by asset use and cashflow stability. Industrial assets often attract longer tenures and higher LTVs if leases are long and tenants are strong. Retail and offices depend more on foot traffic and market cycles. Each asset profile affects pricing and appetite.
Who offers these loans and how are packages structured?
Major banks, smaller local banks, and finance companies all lend. Packages combine a base pricing benchmark (SORA, FDR, prime/board) plus a margin, with fees, valuation costs, and sometimes an overdraft facility. We compare across providers to find the best fit.
What rate types should I expect now?
Expect floating packages referenced to SORA or bank board/prime rates, and occasional fixed offers for short lock‑ins. Floating is common for longer tenures; fixed may suit short‑term certainty. Each has tradeoffs in cost and flexibility.
How does a SORA + margin package work?
The bank sets SORA as the benchmark and adds a spread based on your risk profile. Your all‑in cost is SORA plus that margin, plus any admin fees. We can run a worked example for your case to show monthly impact.
When does a fixed package beat floating?
Fixed works when you expect benchmark rates to rise significantly or you need budget certainty during a lock‑in. If market forecasts show sustained increases, locking in can lower long‑term volatility despite a possible premium.
What is the “thereafter” rate and why should I watch it?
After a fixed lock‑in, the loan usually reverts to a higher thereafter pricing. If you don’t reprice or refinance before expiry, you can face a sharp jump in monthly payments. Plan renewals three to four months ahead.
How much can a business borrow — what about LTV limits?
Typical LTVs vary: owner‑occupiers may access 80%–90%, while investors often see 60%–70%. Limits reflect asset class, lease length, and borrower strength. We model scenarios so you know realistic borrowing capacity.
Can I get 100%+ effective financing?
Some structures allow near 100% financing when acquisition costs, fees, and working capital are packaged, but these increase risk and cost. Lenders may require higher margins or guarantees. We stress‑test outcomes before you commit.
What do lenders look for in credit assessment?
Revenue stability, operating cashflow, balance sheet strength, borrower track record, and the property’s lease profile matter most. Strong sponsors and long leases improve terms; weak cashflow tightens them.
What loan tenures are typical and how does leasehold affect them?
Terms range from 5 to 30 years. For leasehold sites, remaining lease years cap tenure; a short lease reduces lenders’ willingness to extend long tenures and raises monthly costs. We advise on optimal term given remaining lease.
How do I estimate monthly repayments?
Repayments depend on amount, term, and pricing. We provide clear amortization examples so you see principal and interest breakdowns. That helps you compare packages on a cashflow basis, not just headline cost.
Should I hold the asset in an operating company or an investment holding company?
Each structure has tradeoffs. Banks may request corporate guarantees for holding companies and assess dividend flows. Holding structures can affect tax, liability and approval speed. We review your setup and recommend lender approaches.
When does TDSR or personal liabilities affect approval?
If shareholders provide personal guarantees or if the bank assesses owner income, TDSR-style metrics may apply. This can limit borrowing capacity for individuals involved. We help structure applications to minimise unintended personal exposure.
What are the main ongoing costs beyond pricing?
Expect legal and conveyancing fees, valuation fees, stamp duty, and possible GST on purchases. Banks may charge monitoring or facility fees. We present a full cost sheet so you know total financing expense.
How should I manage rate review and repricing timelines?
Track lock‑in expiry and lender notice periods. Start comparing options three to four months before expiry to avoid being moved to a punitive board/prime thereafter. Staggered review planning reduces refinancing pressure.
When should I refinance to manage floating‑rate risk?
Begin the process 90–120 days before lock‑in ends. Refinancing early gives negotiating leverage and time for due diligence. We coordinate valuations and term sheets to smooth transitions and secure better pricing.
How can Property Equity Loan help me compare offers?
We gather live quotes across banks and finance houses, model cashflow scenarios, and highlight overdraft or OD structures where helpful. Our role is to clarify tradeoffs and present tailored options so you can decide with confidence.
