Secure Up to 85% Financing for Your Commercial Property Loan In Singapore

A typical application can take as little as a few weeks, and drawdown and cash-out arrangements can take an additional month to complete, as there are legal steps that must be completed, especially if there is a transfer of charge over the asset.

Brokers deal with a wide range of lenders, giving them access to a wide range of products at various pricing points. That means you may go to a single mortgage broker and examine a variety of lending options. To select the best financing, the broker will assist you in comprehending the interest rate, LTVs, and other information of each offer. This is opposed to you applying with each direct lender independently and analysing them on your own.

Borrowers can choose between fixed packages for predictable cash flows or variable packages that may offer lower initial rates. Both structures typically involve a two- to three-year lock-in period, with penalties for early repayment or property sales.

You should budget for legal and appraisal expenses, though these are sometimes subsidised by the bank, and be aware of a 1.5% penalty if you sell or prepay during the two-to-three-year lock-in period. Additionally, commercial property loans generally carry slightly higher costs than residential alternatives.

Different banks might arrive at substantially different valuation estimates, implying that some of the process relies on guesswork rather than established appraisal rules. It's most likely from the Singapore Institute of Surveyors and Valuers (SISV) for private homes. If the property is owned by HDB, you can acquire a valuation report from their own panel of valuers, who are all IRAS-licensed professionals.