Surprising fact: more than 50 banks and institutions in Singapore offer financing for non-residential property, giving businesses an unusually wide field of options to compare.
We know this can feel overwhelming. So we cut through the jargon and show what really moves your final price.
In this brief guide, we explain how pricing works, what a SORA-pegged package means versus fixed choices, and why bank spreads matter for your business’s total cost.
Expect plain-English steps on eligibility, documents, and timelines so your application goes smoothly. We also cover owner-occupation versus investment property scenarios and how each affects approval and repayment.
Need personalized help? WhatsApp us for a discovery session and we’ll walk you through options, answer questions, and help you compare packages with clarity and confidence.
Key Takeaways
- Singapore has extensive market choice—over 50 providers, so compare offers carefully.
- SORA-pegged and fixed packages behave differently; the benchmark affects your total cost.
- Eligibility and assessment are more subjective for non-residential property; documentation matters.
- Promotions, fee offsets, and renovation add-ons can lower upfront cost.
- We provide tailored support to align structures with your cash flow and goals.
Commercial financing in Singapore at a glance
Before you pick a package, know how banks view owner-occupation versus investment purchases.
Singapore’s market has more than 50 banks and finance companies offering finance for non-residential property. That competition benefits you: lenders tailor structures to usage, company profile, and cash flow.
Owner-occupied properties commonly qualify for higher LTVs — around 80%–90% — while pure investments usually sit nearer 60%–70%. Buyers pay up to 3% Buyer’s Stamp Duty on non-residential purchases, and there is no Additional Buyer’s Stamp Duty.
If the seller is GST-registered, GST may apply on the purchase. Businesses that are GST-registered can typically claim that GST back after completion, which affects your net price and working capital.
“Expect underwriting to focus on operating history, revenue and cash flow — commercial assessments are bespoke.”
- Packages often come as short fixed terms or SORA-pegged floating options.
- Promotions can reduce upfront fees or cover legal and valuation costs.
- Some banks bundle renovation financing, including eco upgrades up to full eligible costs.
Our team benchmarks lenders, explains key differences, and narrows your shortlist fast. WhatsApp us for a discovery session and we’ll highlight the best offer and timing — for example, DBS’ SG60 campaign gives a 60% processing fee discount for online applications through 30 Sept 2025 and includes fixed or SORA-pegged packages with up to 25-year tenure. Learn more about their industrial & commercial property loan options here.
Commercial loan interest rates: how they work and what affects your price
Knowing what drives the final monthly payment makes comparing offers simple.
How banks set a payable: most floating packages use the 3‑month compounded SORA benchmark plus a lender spread. That means your payable moves as the benchmark moves, and the bank adds a margin to cover credit and operating costs.
SORA-pegged vs fixed packages
Floating structures tie you to a transparent benchmark published daily by MAS. Fixed packages lock a rate for a set window, often the first two years, giving budget certainty.
Typical market ranges and bank spreads
Current ranges sit around the low‑to‑mid 3% p.a. Recently observed examples include 3‑month SORA + 1% in year 1, then +2% in year 2. Some fixed offers can sit near ~3.2% and, occasionally, be lower than floating.
Lock-in, repricing and early repayment fees
Lock-in periods usually run 1–3 years. Breaking them early can trigger prepayment charges or a break fee.
- Total price = benchmark + bank spread + any applicable fees — we will quantify each for you.
- Repricing with the same lender often avoids legal costs; external refinancing may be worth it after the lock-in.
- Banks may offer legal or valuation subsidies and short-term processing fee discounts for applications that meet campaign rules.
“Because MAS publishes SORA daily, the benchmark is clear — you no longer guess a board rate.”
We’ll review your cash flow and growth plans, run modeled outcomes, and map the true multi‑year cost. WhatsApp us for a discovery session and we’ll explain SORA vs fixed simply and guide your application step‑by‑step.
How much you can borrow and for how long
Deciding how much you can borrow and for how long starts with two simple facts about the property and your cash flow.
LTV bands vary by use. Owner-occupied properties commonly qualify for around 80%–90% LTV, while investment purchases typically sit nearer 60%–70% LTV. These are subject to a lender’s credit assessment and your company’s track record.
Some banks combine a mortgage with an unsecured term facility to reach higher total funding — sometimes up to 100%–120% of the purchase price. That increases leverage and should be handled prudently.
Tenure, remaining lease and monthly instalment impact
Typical tenures in Singapore range 20–30 years, though many offers advertise up to 25 years. Leasehold properties with short remaining tenure often force a shorter repayment period.
- Shorter permitted tenure raises monthly instalments and the overall price you pay.
- Lenders usually require at least 5–10 years of lease remaining beyond the loan maturity.
- For industrial property, bank appetite and valuation can further restrict term length.
“We model repayments across tenures so you can see monthly impact and total price under different scenarios.”
Start on WhatsApp and we’ll size your budget, estimate monthly instalments, and align tenure to your cash flow. We’ll also stress-test funding at different benchmarks so your business stays protected.
Choosing the right commercial property loan package for your business
Your choice should protect cash flow today and leave room to grow tomorrow.
When fixed makes sense vs floating SORA
If you need budgeting certainty, a fixed-for-2-years package can cap your payments through near-term plans. Fixed suits a steady repayment period and predictable cash flow.
Floating (3‑month compounded SORA) may save you money if benchmarks fall and you can accept variability. We’ll model both so you see total cost under different paths.
Working capital add-ons and renovation financing
Ask about bundled financing. Some banks will fund renovation and eco upgrades up to 100% when combined with a mortgage. That preserves working capital for operations while you upgrade the asset.
Refinancing and repricing after the lock-in period
Start refinancing planning 3–4 months before the lock-in period ends. Repricing with the same bank often saves legal and conveyancing fees. External refinancing can make sense if a better offer covers all costs.
| Feature | Fixed (2 yrs) | SORA (3‑mo) | How we help |
|---|---|---|---|
| Budget predictability | High | Variable | Model scenarios for you |
| Renovation funding | Available (bundles) | Available (bundles) | Check Eco Renovate eligibility |
| Refinancing playbook | Reprice, lower fees | Refinance if benchmarks fall | Plan 3–4 months before lock-in end |
WhatsApp us for a discovery session. We’ll compare fixed vs SORA, surface rebates or subsidies, and map your repricing timeline so your business property decisions stay clear and controlled.
Conclusion
A clear financing path turns uncertainty into a manageable timeline and milestones. We’ve shown how pricing is built, what drives total cost, and how structure affects your monthly repayment and long‑term capital plan.
Owning your operating property can unlock asset-backed funding and tax efficiencies. After the initial lock-in, many SMEs reprice with their lender or refinance externally to capture savings.
We’ll give you bank-ready information, track key period dates, coordinate GST handling if applicable, and keep fees and documentation tidy. Expect straight talk and proactive support.
Ready to move? WhatsApp us for a discovery session. We’ll simplify choices, present clear numbers, and guide you from application to completion.
FAQ
What determines Singapore commercial loan interest rates?
Key drivers include the SORA benchmark set by the Monetary Authority of Singapore, bank spreads that reflect credit risk, and market liquidity. Your business credit profile, property type (industrial, office, retail), and loan-to-value (LTV) band also affect the final price. Banks combine a reference rate plus their margin to set your monthly payment.
What’s the difference between SORA‑pegged and fixed rate packages?
SORA‑pegged packages float with the SORA benchmark, so payments change when the market moves. Fixed packages lock a set price for a period, giving payment certainty but often a premium cost. Choose SORA if you expect rates to fall or want lower initial pricing; pick fixed if you need predictable repayments during the lock-in period.
How do bank spreads and typical market ranges work?
Banks add a spread to the benchmark to cover credit risk and profit. Spreads vary by lender, borrower strength, and asset class. Typical ranges depend on the market cycle; stronger borrowers with higher asset value get tighter spreads. Always compare the effective APR, not just the spread.
What lock-in periods and early repayment fees should I expect?
Common lock-in periods run from 1 to 5 years. If you repay or refinance during this time, banks may charge prepayment penalties or break fees to cover funding costs. After the lock-in, you typically face minimal exit costs. Confirm fee schedules and GST treatment up front.
How does MAS transparency affect borrower protection?
MAS requires clearer disclosure of SORA-linked pricing and repricing mechanics. That makes it easier to compare offers and understand how repayments adjust. It also encourages fairer practices and helps you assess refinancing timing.
How much can I borrow for an owner‑occupied vs investment property?
LTV bands differ: owner‑occupied properties usually qualify for higher LTVs than purely investment or commercial industrial assets. Exact limits depend on asset type, remaining lease tenure, and your company’s balance sheet. Banks will perform a property valuation and stress test your cash flows.
How do tenure and remaining lease affect monthly installments?
Longer tenures reduce monthly installments but increase total interest paid. Properties with shorter remaining leases can reduce eligible tenure or lower LTV, raising monthly costs. Banks use amortization schedules to show monthly payments under different terms.
When should I pick a fixed package instead of SORA?
Consider fixed pricing if you value payment certainty, expect rates to rise, or have tight cash flow. Choose SORA if you can tolerate variability, want lower initial pricing, or expect rates to fall. Also weigh the lock-in length and potential refinancing strategy after the fixed term.
Can I add working capital or renovation financing to my package?
Yes. Many banks offer add‑ons for working capital, tenant fit‑outs, or renovation funding rolled into the facility. These can affect your LTV and repayment schedule. Discuss separate facilities or blended pricing with your relationship manager for clarity.
What is a good refinancing and repricing strategy after the lock‑in?
Review the market, compare bank offers, and time refinancing when spreads tighten or SORA falls. Prepare up‑to‑date financials and a valuation. Negotiate for waived fees or a new package that reduces monthly payments. Aim to refinance before any costly repricing event.
What fees and taxes should I budget for when applying?
Expect application or processing fees, valuation and legal fees, stamp duties, and GST on certain bank charges. There may also be exit penalties during lock‑in. Get a fee schedule and a total cost example from lenders so you can compare net pricing.
How will banks assess my company for approval?
Lenders review financial statements, tax records, cash flow, rental income stability, and the asset’s valuation. They also check corporate ownership, director guarantors, and credit history. Stronger companies receive better pricing and higher LTVs.
Do different asset types (industrial, retail, office) change the offer?
Yes. Asset class affects risk perception and LTV. Industrial and well‑leased assets often attract more favourable terms than vacant retail or short‑lease office space. Location, tenant mix, and lease length matter for valuation and pricing.
How quickly can a business property financing be approved?
Timelines vary by bank and complexity. A straightforward refinance can close in 2–4 weeks. New purchases or complex facilities with renovation financing typically take 4–8 weeks. Early preparation of documents speeds up assessment.
