Commercial property loan Singapore
Finance Your Commercial Property With the Full Deal in View.
Buying an office, shop, shophouse, warehouse or industrial unit? Singapore Home Services helps business owners and investors compare relevant commercial property financing options and understand the terms before committing.
- Office, retail and industrial property
- Purchase and refinancing
- Individual and business borrowers
- Compare multiple bank structures
What can be financed?
Commercial property financing covers more than office purchases.
The way a bank assesses the deal can change with the property, borrower and intended use. Start by identifying what you are actually financing.
01 / OFFICE
Office Units
Strata offices, business premises and other eligible office property for own use or investment.
02 / RETAIL
Shops & Shophouses
Retail units and eligible commercial shophouses, subject to property classification and lender requirements.
03 / INDUSTRIAL
B1, B2 & Industrial
Factories, industrial units and business-space financing where the property and intended use meet applicable requirements.
04 / EXISTING ASSET
Commercial Refinancing
Review an existing commercial property loan when pricing, lock-in or business funding needs change.
How much can you borrow?
There is no single market-wide commercial-property LTV.
Commercial financing is not as standardised as a residential home loan. Banks can apply different financing limits, tenures and credit criteria depending on the property and borrower.
Why the advertised maximum can mislead
Different commercial-property products can publish very different maximum financing levels. Some facilities also combine the property loan with working-capital or overdraft financing. That means a headline percentage should not be treated as the amount you personally can borrow.
- Borrower profileIndividual, operating company and investment-holding structures may be assessed differently.
- Property type and valuationOffice, retail, industrial and mixed-use assets can attract different financing treatment.
- Business financial strengthFor business borrowers, banks may review revenue, cash flow, profitability, existing facilities and directors' credit profiles.
- Own use or investmentWhether the premises support your operating business or are held primarily as an investment can affect the structure.
- Loan tenure and ageLonger tenures can reduce instalments but change total interest and may be constrained by lender criteria.
Current bank examples demonstrate the variation: UOB publishes commercial-property products with different maximum financing structures depending on borrower/product, while OCBC advertises business facilities where property financing can be combined with additional working-capital financing. Always compare the actual facility terms that apply to you.
Cash flow before headline rate
What should you compare in a commercial property loan?
The interest rate matters. The structure around it often matters just as much.
Rate structure
Fixed or SORA-pegged
Commercial-property packages may be offered on fixed or floating structures. Check how the rate is calculated and when it can change.
Upfront capital
Equity and cash required
Do not plan from a headline LTV alone. Allow for the difference between purchase price and bank valuation, duties, fees and fit-out requirements.
Flexibility
Lock-in and repayment terms
Review early-redemption, partial-repayment, repricing and refinancing conditions before you sign.
Business impact
Monthly debt service
A property purchase should not leave the operating business short of working capital. Compare instalments against realistic cash flow.
Total cost
Legal, valuation and bank fees
Package-specific charges and subsidies can change the actual cost of the facility. Check them together, not separately.
Future use
Refinancing and equity release
Some businesses later refinance or use property equity for business needs. Consider how restrictive today's facility may be later.
Estimate the monthly commitment
Commercial property loan calculator
Use your own loan amount, rate and tenure. This is an instalment estimate only and does not represent a bank offer.
Estimated monthly instalment
S$0
The calculator does not assess eligibility, valuation, fees, interest resets, working-capital facilities or lender-specific repayment conditions.
Taxes and upfront costs
Commercial property does not mean “no stamp duty”.
Purely non-residential property is generally outside the residential ABSD regime, but Buyer's Stamp Duty still applies. Mixed-use and certain land acquisitions need additional care because a residential component can change the tax treatment.
Buyer's Stamp Duty for non-residential property
IRAS computes BSD on the higher of purchase price or market value. Current non-residential marginal rates are:
| Value band | Rate |
|---|---|
| First S$180,000 | 1% |
| Next S$180,000 | 2% |
| Next S$640,000 | 3% |
| Next S$500,000 | 4% |
| Remaining amount | 5% |
ABSD and industrial SSD
ABSD: IRAS applies ABSD to residential property. A purely non-residential commercial acquisition is generally not subject to residential ABSD, but mixed-use or land with a residential component can require a different analysis.
Industrial SSD: qualifying industrial property acquired on or after 12 January 2013 can attract Seller's Stamp Duty if disposed of within three years. Current IRAS rates are 15%, 10% and 5% across the first three holding-year bands.
How SHS helps
Compare the facility before you commit the business to it.
A commercial property loan is not just a mortgage decision. It can affect business liquidity, future borrowing and the flexibility of the property itself.
Tell us about the asset
Purchase or refinance, property type, expected value and whether it is for own use or investment.
Clarify the borrowing structure
Individual, operating company or investment-holding company can lead to different considerations.
Review relevant bank options
Compare financing quantum, rate structure, tenure, fees, lock-in and other material conditions.
Proceed with the lender you choose
The selected bank performs its own credit, property and documentation assessment before any approval.
Common commercial financing decisions
The property can look attractive while the financing still needs work.
These are illustrative situations, not fabricated SHS client outcomes.
SME buying its own office
The business may compare the long-term cost of owning against rent, but financing should also preserve enough liquidity for payroll, inventory, tax and day-to-day operations. The highest possible loan is not automatically the healthiest structure.
Investor considering a strata retail unit
Rental yield alone does not answer the financing question. Vacancy, maintenance, valuation, interest resets, duties and the borrower's existing commitments all affect whether the deal remains comfortable.
Business purchasing a B1 industrial unit
The buyer needs to consider financing and intended use together. Industrial-use restrictions, remaining lease, valuation and potential Seller's Stamp Duty on an early disposal can all matter alongside the bank terms.
Company refinancing an existing commercial loan
A lower quoted rate may help, but the decision should also include exit costs, new legal or valuation costs, remaining tenure, lock-in conditions and whether additional working capital is genuinely needed.
Before you request financing
What information should you prepare?
The exact document list depends on the lender and borrowing structure. You can still begin the comparison with a smaller set of useful facts.
For the initial comparison
- Property type and location
- Purchase price or estimated market value
- Purchase or refinancing purpose
- Desired loan amount
- Whether borrowing personally or through a company
- Expected completion or refinancing timeline
- Whether the property is for own use or investment
For formal bank assessment
- Company profile and ownership information where applicable
- Financial statements and/or management accounts where requested
- Bank statements and existing facility information
- Income and credit information for relevant individuals/directors
- Property documents and valuation-related information
- Other documents required by the selected bank
Why engage Singapore Home Services?
A commercial loan deserves more than one bank's headline.
Our role is comparison and explanation. We are not the lender, and we do not promise that a bank will approve a particular amount or rate.
Compare multiple structures
Different banks can package commercial-property financing differently. We help you compare the terms that are actually relevant to your transaction.
Look beyond advertised LTV
We do not present one maximum financing figure as though it applies to every borrower, business or property.
Keep cash flow in the conversation
For an operating business, the mortgage should be considered alongside the working capital the business still needs after completion.
Understand the trade-offs
Rate, tenure, lock-in, repayment flexibility, fees and refinancing options all affect the decision.
Property-specific discussion
Office, retail, industrial and mixed-use assets can involve different considerations. We start with the actual property.
No fake “lowest-rate” promise
Rates and credit outcomes depend on the lender and applicant. We would rather compare a real offer than advertise a number that may not apply to you.
Commercial property loan FAQ
Questions buyers usually ask before applying.
Compare commercial property financing before you commit your capital.
Tell us the property type, approximate value and whether you are buying or refinancing. We will help you organise the comparison around the terms that matter.
Commercial Property Loan
Business owners should allow experience mortgage loan experts to work on their Commercial Property Loan. This is because business owners are always busy and overlooking on this portion will end up paying more interests to the banks. Commercial Property Loan is unlike home loans and the interest may raise up to 6% after lock-in periods.
However, all unnecessary paying to the interest can be avoided if you sign up the loan with someone reliable. Thereafter, the mortgage adviser should constantly keep an update with you to ensure you get the best package avail. Usually, Commercial Property Loans should be applied under the company’s registered name as not all banks provide loans to personal for such cases. We usually provide a cross comparison between both to see which secures a better interest package. Additionally, there can be a big interest difference for companies which buys commercial properties for just for investment.
Regardless which, it is important that the business go through a real estate loan guru. This shortens the process for loan comparison as businesses need to focus on their operations. Furthermore, the loan industry might be complex for many people and signing up on a wrong package will lead to destructive interest paying.
At the end of the day, our consultants will ensure you get the best out of the application. Numbers on an application only shows the surface of the loan package. Hence, only experienced mortgage loan gurus can help you plan out a long term hassle free low interest loan repayment.