Loan-to-Value (LTV) Limit
Financing typically ranges from 70% to 90% of a standard property's value, depending on the bank.
MortgageLogic Advisory
Commercial and Industrial Property Loans in Singapore
Commercial and Industrial Property Loans are specialised financial products that help businesses acquire, expand, invest in, develop, or refinance commercial and industrial real estate for business operations or investment use.
Loan structure
Key Loan Features
Loan terms and repayment structures offer the flexibility needed to suit your specific business requirements.
Loan Tenor
Repayment periods range from 10 to 30 years, subject to the guarantor's current age.
Interest Rates
Choose between fixed or variable rates. Variable rates are typically pegged to transparent market benchmarks, such as the Singapore Overnight Rate Average (SORA).
Typical bank assessment
Commercial and Industrial Property Financing Guidelines
Guidelines vary by bank, property type, borrower profile, lease tenure, property usage, and whether the facility is for purchase or refinancing.
| Financing item | Typical guideline |
|---|---|
| Standard commercial or industrial property | Typically 70% to 90% LTV, depending on bank assessment. |
| Loan tenor | Usually 10 to 30 years, subject to guarantor age and property profile. |
| Interest structure | Fixed or variable packages, with variable rates often pegged to SORA. |
| Business assessment | Financial track record, cash flow, gearing, business use, and repayment ability. |
| Security and valuation | Subject to property valuation, title, remaining lease, zoning, and bank credit approval. |
Mixed-use property
Shophouse Financing Guidelines
Shophouses hold a unique position in Singapore's real estate market. LTV limits depend heavily on zoning and usage.
Pure Commercial Shophouses
Financed similarly to standard commercial properties, with banks typically covering 70% to 90% of the property's total value.
Commercial Shophouses with a Residential Portion
Financing is assessed based on the split usage. Banks generally finance 70% to 90% of the commercial portion's value, but only up to 15% of the residential portion's value.
Interactive assessment
Commercial Property Loan Assessment Calculator
All financial figures should be based on the latest financial year, using audited financial statements or management reports within the latest 18 months.
Assessment results
Company assessment
Healthy
The company appears to have a healthy preliminary assessment.
Assessment readiness
Eligibility Requirements
To qualify, businesses must generally demonstrate:
- A stable financial track record.
- A viable business plan for the property.
- A clear and consistent ability to service the loan.
Ready to get started?
Consult with our experts
Speak with MortgageLogic Advisory to make a more informed decision about your commercial property financing options.
Contact usNo-obligation assessment
Documents Required
Please prepare the following documents so we can evaluate your eligibility:
- Latest 6 months' bank statements
- Latest 2 years' financial statements or management accounts
- Copy of NRIC for all directors and guarantors
- Latest 2 years' Notice of Assessment (NOA) for all directors and guarantors
- Option to Purchase (OTP), if applicable
Additional Documents for Refinancing
- Letter of Offer from your current financier
- Latest Statement of Account
