Commercial & Industrial Property Loan Singapore - LTV, Eligibility & Financing

Unlike residential property loans, commercial property loans in Singapore are not subject to the same MAS-mandated LTV caps. Lenders set their own LTV limits, but in practice most banks will finance between 70% and 80% of the property's purchase price or valuation (whichever is lower) for owner-occupiers. Investment property purchases may attract lower financing ratios. TDSR rules still apply to individual borrowers taking commercial property loans, even though the specific residential LTV MAS limits do not directly apply.

Singapore conservation shophouses are generally classified as commercial properties for financing purposes, even if the upper floors are used for residential occupation. This means a shophouse mortgage in Singapore falls under commercial property loan rules - TDSR applies to individual borrowers, but the residential MSR cap and HDB-specific rules do not. ABSD does not apply to shophouse purchases in the same way as residential properties. URA zoning must be checked, as some shophouses have restrictions on sub-letting that affect lender appetite and rental yield assumptions.

Yes. Commercial and industrial property loans in Singapore can be taken by corporate entities. When a company purchases commercial or industrial property, the loan assessment focuses on the company's financial standing, cash flow, and debt service ability. Banks typically still require personal guarantees from directors or major shareholders. Corporate borrowers purchasing residential property are subject to the 65% ABSD rate unless a remission applies. For commercial properties, there is no equivalent ABSD, but Buyer's Stamp Duty still applies.

Individual borrowers typically need: NRIC, income documentation (payslips, NOA, CPF contribution history), a property valuation report, the Option to Purchase or Sale & Purchase Agreement, details of existing loans, and bank statements. Corporate borrowers additionally need: ACRA company profile, the latest 2-3 years of financial statements or management accounts, 6 months of corporate bank statements, details of all existing credit facilities, and NRIC of directors providing personal guarantees.

Commercial property loan interest rates in Singapore are generally higher than residential home loan rates. Rates typically range from approximately 2% to 5% per annum depending on the lender, property type, borrower profile, and prevailing market conditions. Some lenders offer fixed-rate periods of 1 to 3 years before the loan moves to a floating rate referenced to SORA or the bank's internal board rate.

Yes, refinancing a commercial or industrial property loan in Singapore is possible once your current loan's lock-in period expires. Savings must be weighed against legal and valuation fees, which tend to be higher for commercial properties than residential. If your property has increased in value since the original purchase, a refinance may also allow you to access additional equity. Comparing multiple lender terms is important as commercial loan packages are less standardised than residential packages.