MortgageLogic Advisory
An equity loan allows property owners to unlock the wealth built up in residential or commercial real estate. By leveraging the property as collateral, owners may receive a lump-sum cash disbursement to fund financial needs, personal investments, or business expansion.
Equity Loan
The equity is the difference between your property's current market value and your outstanding mortgage balance, along with any CPF funds utilised, if applicable.
Available equity = current property value - outstanding mortgage - CPF used
Property-backed SME financing
A powerful alternative to standard personal equity loans is the Property-Backed Business Loan. Companies can leverage a director's personal residential or commercial property to secure a loan under the business entity's name.
Because the borrower is an operating company rather than an individual, these facilities are often assessed differently from standard personal residential equity loans governed by MAS Notice 632. This structure can help businesses unlock working capital at significantly lower interest rates compared with unsecured business loans, using the director's property equity as a flexible financing tool.
Loan structure
The amount you can borrow is determined by available equity. For residential properties, MAS Notice 632 regulates strict LTV limits for individuals. Banks factor in current property value, outstanding mortgage, and whether total facilities remain within the relevant LTV threshold.
Equity loans are typically structured with shorter repayment periods than standard mortgages. Tenors usually range from a few years up to 15 years, depending on requirements and age.
Borrowers may choose fixed or variable interest rates. Variable rates are commonly pegged to transparent market benchmarks such as the Singapore Overnight Rate Average (SORA).
Ready to unlock your property's value?
Speak with MortgageLogic Advisory to make an informed decision about cashing out your property's equity or using property-backed business financing.
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Please prepare the following documents so we can evaluate your eligibility.
