Commercial Property Loan Rates in Singapore — Finance Your Next Office, Retail or Industrial Unit
Buying or refinancing a commercial property? Ace Mortgage secures top loan deals for shophouses, offices, warehouses, and mixed-use spaces.
Compare Commercial Property Loan Interest Rates
We’ll help you navigate complex commercial financing with clarity — from loan structuring and bank selection to paperwork and approvals. Access tailored options from DBS, OCBC, UOB, Maybank, and more.
New LoanRefinancingMortgage Loan Rates from All 16 Banks
Buy or Refinance a Commercial Property Loan in Singapore
Looking to acquire a new office, retail, or industrial unit — or refinance an existing commercial property loan? Whether you’re an SME owner, investor, or property holding entity, securing the right commercial loan can dramatically improve your cash flow and long-term returns.
At Ace Mortgage Advisory, we compare commercial property loan packages from all major banks in Singapore — guiding you through bank policies, structuring options, and legal considerations, with zero hassle and no hidden fees.
Lower Your Financing Costs
Commercial property loan rates vary significantly across banks and borrower profiles. Refinancing or choosing the right package from the start can reduce your monthly repayments and save thousands in interest — especially if your existing rate is above market average.
Expand Your Portfolio or Business
Access more capital by refinancing your property at a higher valuation or leveraging rental income. Restructure your loan to release cash for business expansion, renovations, or additional investments.
Improve Loan Terms & Flexibility
Many commercial loans come with rigid terms and long lock-in periods. Switching to a more favorable package could offer better flexibility on tenure, repayment structure, or early redemption conditions.
Simplify Ownership Structure
Refinance into a more efficient entity — such as a holding company or business trust — to streamline taxes, liability, and estate planning for commercial assets.
Tailor Tenure & Repayment
Whether you need a short-term working capital bridge or a long-term investment loan, we help you match your financing strategy with the right tenure, interest rate type, and prepayment terms — customized to your business goals.
Free Expert Consultation
At Ace Mortgage, we offer free, unbiased advice. We explain the pros and cons of both HDB and bank loans — and help you secure the best deal based on your property goals, eligibility, and financial situation.
Latest Commercial Loan rates & Interest Rates for Commercial Property Loan
Whether you’re financing the purchase of a new office unit, refinancing a shophouse mortgage, or unlocking equity from a warehouse investment — comparing the latest commercial loan packages is critical to reducing costs and improving cash flow.
Singapore banks offer a wide range of commercial property financing solutions, and each package comes with its own eligibility criteria, lock-in terms, and interest structure. With the right advice, you can secure smarter funding and avoid overpaying on interest.
🏦 Fixed Rate Commercial Loans (For Predictable Repayments)
Compare Fixed Rate Commercial Property Loan Packages (July 2025)
| Bank | 2-Year Fixed Rate | 3-Year Fixed Rate | Lock-In Period |
|---|---|---|---|
| DBS | 3.35% p.a. | 3.45% p.a. | 2–3 years |
| OCBC | 3.38% p.a. | 3.48% p.a. | 2–3 years |
| UOB | 3.40% p.a. | 3.50% p.a. | 3 years |
| Maybank | 3.33% p.a. | 3.43% p.a. | 2–3 years |
| HSBC | 3.37% p.a. | 3.47% p.a. | 2–3 years |
Looking to finance your office, warehouse, shophouse, or industrial unit? Fixed-rate commercial property loans are ideal for business owners and property investors who want repayment stability — especially when planning long-term operations.
💡 Who This Is For:
Business owners, SMEs, and property holding companies seeking long-term financing certainty for:
Office units
Industrial properties
Shophouses & mixed-use developments
✅ Key Benefits of Fixed Rate Commercial Loans:
✔ Lock in a fixed commercial loan percentage for 2–3 years
✔ No surprises in monthly instalments — better for cash flow planning
✔ Easier forecasting for companies with stable or growing income
✔ Peace of mind during volatile interest rate cycles
✔ Widely used for loans for business property, industrial property loan, and mixed-use assets
🟢 Need help comparing commercial loan packages?
At Ace Mortgage Advisory, we help you:
Compare commercial loan interest rate Singapore across top banks
Structure the ideal loan based on your business goals
Enjoy full service — from application to legal coordination — at no cost
💬 Chat with us today for a bank-neutral, tailored quote.
📍 Fast. Free. 100% unbiased.
🌊 Floating Rate Commercial Loans (3M SORA Pegged)
Compare Floating Rate Commercial Property Loan Packages (3M SORA Benchmark) (July 2025)
| Bank | Rate Structure (3M SORA + Spread) | Estimated Effective Rate | Lock-In Period |
|---|---|---|---|
| DBS | 3M SORA + 1.10% | ~3.97% p.a. | 2 years |
| OCBC | 3M SORA + 1.15% | ~4.02% p.a. | 2–3 years |
| UOB | 3M SORA + 1.20% | ~4.07% p.a. | 3 years |
| Maybank | 3M SORA + 1.05% | ~3.92% p.a. | 2 years |
| HSBC | 3M SORA + 1.08% | ~3.95% p.a. | 2 years |
If you’re financing a commercial property and want to benefit from potentially lower initial rates, a floating-rate loan pegged to the 3M SORA benchmark may offer better cost savings — especially if you’re comfortable with short- to mid-term rate fluctuations.
💡 Who Should Consider This:
Commercial investors seeking lower initial costs
Buyers of shophouses, office units, or industrial real estate
Companies or landlords comfortable with mortgage on commercial real estate tied to market rates
✅ Key Advantages:
✔ Lower upfront rates vs fixed packages
✔ Transparent pricing linked to MAS-endorsed SORA
✔ Ideal for medium- to long-term investment strategies
✔ Greater flexibility to refinance or reprice after the lock-in
✔ Widely used for business property mortgage and commercial property mortgage loan
🔍 Want to Project Future Rates?
At Ace Mortgage Advisory, we’ll help you:
Run projections using future SORA trends
Compare total loan cost across multiple banks
Secure optimal packages for your commercial needs
💬 Speak with us for a tailored, side-by-side commercial loan analysis — 100% free.
🔢 Commercial Property Loan Calculator (Estimate Your Monthly Repayment)
Before committing to a commercial property purchase or refinancing, it’s important to estimate your monthly loan obligations accurately. Unlike residential loans, commercial property loans in Singapore often have shorter tenures, higher interest rates, and stricter repayment structures — making it crucial to plan cash flow effectively.
Our Commercial Property Loan Calculator helps you project your monthly repayment based on:
Key Factors That Affect Your Commercial Property Loan
| Input Factors | Why It Matters |
|---|---|
| Property Purchase Price / Valuation | Determines the maximum loan quantum |
| Loan Amount Requested | Often up to 80% of valuation (lower for investment use) |
| Loan Tenure | Commercial loans typically range from 10 to 25 years |
| Interest Rate | Usually between 3.2% – 4.5% p.a. (fixed or floating) |
| Repayment Type | Standard monthly instalment (principal + interest) |
💡 Sample Calculation:
Loan Amount: $2,000,000
Tenure: 20 years
Interest Rate: 3.5% p.a.
Estimated Monthly Repayment: ~$11,600/month
For your loan of $2,000,000 over 20 years at 3.5% p.a.:
Total interest paid over the loan term: ~$783,807
Total principal repaid: ~$2,000,000
📌 Note: Commercial mortgage rates typically range from 3.2% to 4.5% p.a., depending on bank, borrower profile, and whether the property is owner-occupied or tenanted.
✅ Why Use a Commercial Loan Calculator?
🧮 Plan Your Cash Flow: Know your monthly commitment upfront
💼 Prepare for Bank Approval: Estimate if your business income supports repayment
🏢 Compare Bank Offers: See how different interest rates and loan amounts impact repayments
🧾 Align Tenure to Business Cycles: Match financing structure to rental yield or business ROI
📊 Want a personalized loan projection based on your commercial property type and business income?
🟢 [Get a Free Loan Assessment] – We’ll calculate and compare options across multiple banks, instantly.
🏗️ Building Under Construction (BUC) Loans and HDB Flats
Choosing the right lender for your mortgage loan for commercial property can significantly affect your business cash flow, approval turnaround, and total interest costs. In Singapore, most major banks offer a variety of commercial mortgage loan options — but each differs in interest rates for commercial property loans, credit appetite, and approval flexibility.
Here’s a breakdown of some of the top-performing banks in commercial property financing:
🏛️ DBS Bank
Known For: Competitive interest rates for commercial property loans and swift processing for both commercial and industrial units.
Strengths: Intuitive digital platforms, reliable SME support, and flexible loan tenures.
Best For: Shophouse purchases, B2 industrial properties, and refinancing a mortgage for a business property.
🏛️ OCBC Bank
Known For: High approval rates and strong offerings in the SME segment.
Strengths: Fixed-rate loan packages (up to 3 years), preferential pricing for existing clients.
Best For: Business owners acquiring mortgage loans for commercial property in established zones.
🏛️ UOB Bank
Known For: Strong appetite for financing light industrial and income-generating commercial assets.
Strengths: Higher LTVs for tenanted buildings, refinancing-friendly terms.
Best For: Investors seeking a mortgage loan commercial property with solid yield.
🏛️ Maybank
Known For: Flexible solutions for SMEs and early-stage businesses.
Strengths: Competitive commercial loan interest rates for loans under $3M, subsidy support for legal fees.
Best For: New commercial buyers or SME owners needing mortgage for a business property with growth potential.
🏛️ HSBC Singapore
Known For: Tailored lending for high-net-worth clients and regional investors.
Strengths: Premium commercial property mortgage loan options, private client support.
Best For: Larger loan amounts, corporate borrowers with multiple properties.
💡 Tips for Choosing the Right Bank:
Compare LTV limits: Some banks offer up to 80% financing; others cap at 70%
Check lock-in periods: Affects flexibility for refinancing or repricing
Ask about repricing options: Helpful for long-term commercial real estate loans
Review legal subsidies: May reduce upfront legal or valuation costs
🤝 Need Help Picking the Best Bank for Your Commercial Mortgage?
At Ace Mortgage Advisory, we match you with the right bank based on your property type, business structure, and financing goals. From mortgage loan for commercial property to business property mortgage refinancing, we give you access to insider rates — with no cost to you.
🟢💬 Compare Commercial Bank Loan Packages Now
💰 Costs of Commercial Financing (Valuation, Legal, Subsidies)
When applying for a commercial property loan or industrial property mortgage in Singapore, it’s essential to consider not just the commercial real estate loan interest rate, but also the upfront and processing costs associated with securing the loan.
Beyond the advertised commercial loan rates, borrowers must budget for valuation fees, legal charges, and administrative costs — which vary by property type, loan size, and chosen lender.
Here’s a detailed breakdown of the most common costs involved in commercial real estate financing:
🧾 1. Property Valuation Fee
Range: $500 – $2,000+
Charged by: The bank via their panel of approved valuers
When it’s required: All commercial property purchases or refinancing applications
💡 Tip: The valuation amount directly impacts your loan-to-value (LTV) ratio — and ultimately the maximum commercial loan amount you’re eligible for.
⚖️ 2. Legal Fees (Conveyancing)
Range: $2,000 – $5,000+ (higher for complex deals or larger properties)
Includes: Property transfer legal work, mortgage stamping, CPF documentation (if used), and lodgment of caveats
💡 Tip: Always go with a bank-approved law firm to qualify for legal subsidies and avoid unnecessary delays.
🏛️ 3. Bank Processing & Admin Fees
Range: 0.5% – 1.5% of the loan quantum
May include:
Facility setup charges
Documentation and admin fees
Bridging loan processing (if applicable)
💡 Tip: Some lenders waive admin fees for larger commercial real estate loans or offer discounts for returning business clients.
💵 4. Bank Subsidies & Cash Rebates
Applies to: Primarily for commercial mortgage refinancing, but also sometimes available for purchases
Subsidy Range: $2,000 – $3,000 (depending on bank and loan size)
💡 Tip: Check if a clawback period applies — most banks require you to retain the loan for at least 2–3 years, or the subsidy must be repaid.
🤝 Need Help Reducing Upfront Costs?
At Ace Mortgage Advisory, we negotiate directly with banks to help you minimize these costs. Whether you’re taking a mortgage for commercial property, planning a refinance of your commercial loan, or simply comparing commercial loan interest rates, we’ll help you get the most competitive offer — with transparent cost breakdowns and 100% free advisory.
💡 Summary Table: Estimated Commercial Loan Costs
| Cost Type | Typical Range | Notes |
|---|---|---|
| Valuation Fee | $500 – $2,000+ | Based on property type & value |
| Legal Fees | $2,000 – $5,000 | Required for all commercial property loans |
| Bank Admin/Processing | 0.5% – 1.5% of loan | May be waived during promotions |
| Subsidy (Legal Rebate) | Up to $3,000 | Clawback applies within 3 years |
🤝 Pro Tip:
At Ace Mortgage Advisory, we negotiate for cost waivers and subsidies on your behalf — ensuring you not only secure the lowest interest rate, but also minimize out-of-pocket expenses.
🟢💬 Speak to an Advisor About Commercial Loan Fees
🔄 Equity-Term Financing (Cash-Out Refinance for Businesses)
If you’ve owned a commercial or industrial property in Singapore for several years, chances are its market value has appreciated — or your loan principal has been substantially reduced through regular repayments. This opens up a strategic opportunity to unlock equity through a cash-out refinance, also known as equity-term financing.
This form of financing is widely used by SMEs and business owners to raise working capital — without having to sell their property or rely on unsecured credit lines.
💼 What Is Equity-Term Financing?
Equity-term financing allows you to refinance your existing commercial property loan and extract additional cash based on your property’s current market value.
You retain full ownership of your property, while accessing extra funds — typically at a lower commercial loan rate of interest than traditional business loans.
💡 How It Works:
The bank reassesses your property’s updated valuation
You may be eligible to borrow up to 75% of your property’s value (inclusive of any outstanding loan)
The difference between your current loan and the new approved amount is disbursed as capital to your business
🏢 Common Uses for Cash-Out Proceeds:
Business expansion or renovations
Purchasing new equipment or inventory
Hiring, marketing, or digital transformation
Refinancing higher-interest SME loans or personal lines
Consolidating debt into a single, lower-rate loan
📈 Why It’s Popular in Singapore:
Interest savings: The commercial property loan interest rate in Singapore is often much lower than unsecured financing
No loss of ownership: You keep your property while unlocking liquidity
Tailored to SMEs: Suitable for growing businesses that are asset-rich but cash-tight
🔍 Things to Consider:
TDSR compliance still applies — your monthly obligations shouldn’t exceed 55% of gross income
Banks will typically require a fresh valuation report, which costs ~$500–$2,000
Some lenders offer preferential commercial loan interest rates for larger loan sizes or refinances from other banks
🤝 Need Help Structuring a Cash-Out Refinance?
At Ace Mortgage Advisory, we help businesses unlock capital through equity-term loans — matching you with banks offering the most competitive commercial loan rate of interest and highest approval flexibility.
🟢💬 Chat with us for a free equity assessment and see how much capital you can access — with no obligation.
📌 Key Features:
| Feature | Typical Range / Notes |
|---|---|
| Loan-To-Value (LTV) | Up to 70% of current market value |
| Use of Funds | Business purposes only (subject to bank documentation) |
| Interest Rate | 3.0% – 4.5% p.a. (floating or fixed options available) |
| Tenure | Up to 25 years (subject to property and borrower profile) |
| Cash-Out Quantum | Based on valuation minus outstanding loan & LTV limit |
| Security Required | Mortgage over commercial property (no need for directors’ guarantee in some cases) |
💡 Example:
Property Current Value: $2,500,000
Outstanding Loan: $1,200,000
Max LTV (70%): $1,750,000
Cash-Out Available: $550,000
✅ Why Use Equity-Term Financing?
- Unlock business capital without taking on high-interest unsecured debt
- Lower monthly repayments compared to standard business loans
- Tap into property appreciation while retaining full ownership
- Restructure your overall financing into a more efficient loan package
⚠️ Important Considerations
- Banks require proof of business use (e.g., audited statements, invoices, business plans)
- CPF cannot be used for commercial cash-out loans
- Equity funds cannot be used for personal use or residential purchases
🤝 Need Help Structuring a Cash-Out Refinance?
At Ace Mortgage Advisory, we work with major banks to secure the best equity-term financing options — helping you access funds while keeping your mortgage efficient and compliant.
🟢💬 Chat With a Commercial Loan Specialist Now
⏳ When to Refinance a Commercial Property (Timing Tips & Triggers)
Refinancing a commercial property loan is a strategic move that can help businesses reduce interest costs, improve cash flow, or access capital — but timing is everything.
Whether you’re holding an office unit, industrial space, retail shop, or warehouse, knowing when to refinance can help you optimize your financing structure and maximize savings.
⏰ Common Triggers for Refinancing:
| Trigger | What It Means & Why It Matters |
|---|---|
| Lock-In Period Expiry | Once your fixed period ends, you're free to switch banks without penalty. Ideal time to review rates. |
| Interest Rates Have Dropped | Refinance to a lower rate and save thousands in interest over the remaining loan term. |
| Current Loan Is On a Board Rate | Bank board rates are opaque and prone to sudden hikes. Switching to SORA or fixed rates offers transparency. |
| Loan Tenure Restructuring | Stretch the loan term to reduce monthly obligations or shorten it to save on overall interest. |
| Need for Cash-Out / Equity Release | Tap into property value growth to fund business expansion or repay other loans. |
| Approaching Loan Maturity | Some banks reduce LTVs or revise terms when loans near maturity. Refinance early to avoid disruptions. |
🧠 Bonus Timing Tips:
- Start the process 3–6 months before your lock-in ends — this gives time to shop around and secure approval before penalty-free window closes.
- Watch the SORA trend — if rates are expected to rise, it may be worth locking in a fixed rate now.
- Check your property’s current valuation — a higher value can improve your LTV ratio and refinancing terms.
📉 Break-Even Point:
Always calculate the break-even timeline — how long it will take for interest savings to exceed the cost of refinancing (e.g., legal fees). We’ll run the numbers for you so there’s no guesswork.
🤝 Want Expert Timing Advice?
At Ace Mortgage Advisory, we monitor market trends, SORA movements, and bank repricing windows daily — helping you refinance at the right time with the right structure.
🟢💬 Speak to a Commercial Refinance Specialist Today
💼 Bonus Tips for Structuring Commercial Property Loans Efficiently
Getting the best commercial property loan isn’t just about finding the lowest rate — it’s about structuring your loan smartly from the start to maximize borrowing, reduce risk, and protect long-term returns.
Whether you’re a business owner buying an office unit or an investor acquiring a retail or industrial space, here are professional tips that can make a big difference:
🏢 1. Buy Under a Business Entity vs Personal Name
| Ownership Type | Typical Loan-to-Value (LTV) | Common Use Cases |
|---|---|---|
| Private Individual | Up to 80% LTV | Owner-occupied offices or small-scale investors buying in personal capacity |
| Operating Company | ~70% – 80% LTV | Businesses acquiring premises for operational use (e.g. SME owners) |
| Investment Holding Co. | ~60% – 75% LTV | Property investors using SPVs or holding companies |
📊 2. Understand the Type of Property You’re Financing
| Property Type | Financing Considerations |
|---|---|
| Office Unit | Generally stable; popular for owner-occupation. |
| Industrial (B1/B2) | Subject to stricter usage rules. Check remaining lease, zoning, and URA restrictions. |
| Retail/Shophouse | Location-sensitive. Mixed-use or conservation shophouses may require special approval. |
💰 3. Consider Longer Tenures for Cash Flow Flexibility
Typical tenures range from 15 to 25 years, depending on borrower profile and property type.
Stretching the tenure lowers monthly repayments and improves working capital — ideal for SMEs managing cash flow.
🔁 4. Factor in Exit Strategy & Future Refinancing
Build in flexibility: choose packages with no clawback penalties after subsidy period.
Refinance every 2–4 years to keep interest rates competitive and free up equity if needed.
🧾 5. Use Tax-Efficient Ownership Structures
Consider GST-registered entities when purchasing commercial properties that are subject to GST.
Some investors use family trusts or holding companies to optimize estate planning and tax efficiency — always consult a tax advisor for structuring details.
🧠 Pro Tip:
Many commercial property buyers overlook pre-purchase structuring — resulting in higher upfront taxes, poor loan terms, or lock-in complications later. Speak to a mortgage advisor before you issue an OTP.
🟢💬 Need a Custom Loan Structure?
At Ace Mortgage Advisory, we help structure commercial property loans for entrepreneurs, business owners, and investors — across individual, company, or trust ownership structures.
✅ Get strategic advice with zero cost or obligation.
🔵 Speak to a Commercial Loan Structuring Expert Now
Compare Singapore Commercial Property Loan Interest Rate
Whether you’re purchasing an office unit, retail shop, F&B space, or industrial property, securing the right commercial property loan is key to maximizing return on investment, improving cash flow, and minimizing financing costs. From business owners expanding into physical premises to investors seeking recurring rental yields, our role is to help you compare commercial loan rates across all major banks in Singapore — and structure your loan for long-term success.
- Access fixed, floating, and SORA-pegged commercial loan packages
- Get up to 80% financing for owner-occupied units and 60–75% for investment units
- Understand legal fees, valuation subsidies, and interest rate benchmarks
- Tap into cash-out equity loans for business growth, renovations, or working capital
Commercial Property Mortgage Loans for Offices, Retail Units and Warehouses
Singapore's commercial real estate market offers opportunities across strata-titled offices, shophouses, retail spaces, and B1/B2 industrial units. Whether you're buying for business use or long-term investment, choosing the right financing strategy can significantly impact your cash flow and ROI. We help you:
- Compare commercial loan rates across DBS, OCBC, UOB, Maybank, Standard Chartered & more
- Understand LTV limits based on usage (own-use vs investment) and entity type (individual vs company)
- Strategically structure ownership for tax and financing advantages
- Explore refinancing or equity-term financing to unlock property value for business growth
Fast-Track Your Commercial Property Loan — At The Best Commercial Financing Rate
Whether you're buying, refinancing, or upgrading a commercial property, timing is key. Ace Mortgage offers fast loan comparisons, quick IPA approvals, and full coordination with banks, lawyers, and valuers—so you can focus on your business while we handle the paperwork.
- Quick eligibility check — no documents needed upfront
- Fast approval and loan offer from top banks
- Advice on business entity structuring, loan types, and subsidies
- All services completely free — you get full support at no cost
Get Personalised Advice on Mortgage Loans for Commercial Property
✅ Commercial mortgage specialists with in-depth experience in office, retail, industrial, and shophouse financing
✅ Independent advice tailored to your business needs, loan structure preferences, and investment strategy
✅ Fast, end-to-end support for comparing interest rates, structuring ownership (individual or entity), and handling bank & legal coordination
All You Need to Know About Mortgage for Commercial Property Interest Rate & Eligibility
-
Commercial Loan Rates
-
-
Property Types
-
-
-
-
-
Compare Commercial Property Loan Rates in Singapore
If you’re financing an office unit, industrial space, shophouse, or other commercial property in Singapore, securing the best mortgage rate is key to maximizing your investment returns and maintaining healthy business cash flow.
Commercial property loan rates differ significantly from residential home loans — typically priced higher due to the increased risk profile and shorter tenures. Rates are also influenced by whether you purchase the property under your personal name or through a business entity such as a Pte Ltd or LLP.
At Ace Mortgage Advisory, we help you compare the most competitive commercial loan rates across major banks like DBS, OCBC, UOB, and Maybank — all at no cost to you.
🏦 Indicative Commercial Property Loan Rates (2025):
| Bank | 2-Year Fixed | 3-Year Fixed | Floating (3M SORA + Spread) | Est. Effective Rate |
|---|---|---|---|---|
| DBS Bank | 3.60% p.a. | 3.65% p.a. | 3M SORA + 1.20% | ~4.07% p.a. |
| OCBC Bank | 3.65% p.a. | 3.70% p.a. | 3M SORA + 1.15% | ~4.02% p.a. |
| UOB Bank | 3.70% p.a. | 3.75% p.a. | 3M SORA + 1.25% | ~4.12% p.a. |
| Maybank | 3.55% p.a. | 3.60% p.a. | 3M SORA + 1.10% | ~3.97% p.a. |
| HSBC Singapore | 3.58% p.a. | 3.68% p.a. | 3M SORA + 1.18% | ~4.05% p.a. |
💡 Why Interest Rates Matter:
✅ Lower rates mean better yield for rental property investors
✅ Smoother business cash flow for owner-occupied units
✅ Stronger loan servicing ratios and better TDSR compliance
✅ More room for leveraging future property upgrades or purchases
📈 Pro Tip:
Banks may offer preferential rates for larger loan amounts (above $1.5M), priority banking clients, or entities with strong business credit — speak to our advisors to unlock exclusive deals.
🟢 Chat with Ace Mortgage Today — we’ll help you secure the best commercial loan rates available, customized to your financing needs.
Should You Choose a Fixed or Floating Commercial Property Loan?
When financing a commercial property in Singapore, choosing between a fixed-rate and floating-rate mortgage package can significantly impact your long-term cost of borrowing. The right decision depends on your business cash flow, investment goals, and risk appetite.
At Ace Mortgage Advisory, we help you compare fixed vs floating commercial loan packages across top banks — and guide you toward the structure that best matches your commercial goals.
🧮 What’s the Difference?
| Loan Type | Key Characteristics |
|---|---|
| Fixed-Rate Loan | Interest rate is locked in for 2–3 years. Predictable monthly repayments. |
| Floating-Rate Loan (SORA) | Pegged to 3M SORA benchmark + bank spread. Subject to market fluctuations. |
🔒 Fixed-Rate Commercial Loans ideal for:
- Risk-averse buyers or owner-occupiers
- Stable monthly repayments help with long-term budgeting
- Protects against rising interest rates
- Great for businesses that require predictability
🧠 Note: Fixed rates are generally higher than floating packages
🌊 Floating-Rate Commercial Loans (SORA Pegged)
Ideal for:
- Investors or business owners comfortable with some volatility
- Linked to 3M SORA, regulated by MAS
- Typically starts with a lower rate
- Opportunity to benefit from rate declines
- Can be refinanced or repriced if market conditions change
🧠 Note: Monthly payments may increase if interest rates rise
🧠 Choosing the Right Option
✅ Go Fixed If You:
• Want certainty and predictability
• Expect interest rates to rise
• Have tight operating cash flow
✅ Go Floating If You:
• Can manage some rate fluctuation
• Want a lower starting rate
• Plan to refinance or restructure within 2–3 years
📣 Expert Insight:
Some banks offer a free switch to floating after the fixed period ends, while others bundle in one-time free repricing — ask our advisors to help you negotiate these flexibilities before you commit.
🟢 Talk to Us Before You Lock In a Rate — we’ll explain all the pros and cons and help you choose the safest and most profitable path forward.
Types of Commercial Properties Eligible for Bank Loans in Singapore
When applying for a commercial property loan in Singapore, it’s important to know which property types are eligible — and how banks view the associated risks. Loan terms, interest rates, and maximum Loan-to-Value (LTV) ratios can vary depending on the property classification, location, and usage.
Here’s a breakdown of the most common commercial property types that banks in Singapore finance:
🏬 Retail Shops & Shophouses
Includes strata-titled retail units, HDB shops, and conservation shophouses.
Common uses: F&B, tuition centres, clinics, salons.
Loan Tenure: Up to 25 years
LTV: Up to 70% (varies if under a business entity)
Notes: Freehold units and high-footfall locations typically enjoy better bank terms.
🏢 Office Units
Strata-titled offices or full-floor corporate spaces in commercial buildings.
Ideal for: Businesses purchasing their own premises or investors leasing to corporate tenants.
Loan Tenure: Up to 25 years
LTV: Up to 75% (for individuals); ~60% (for companies)
Considerations: Location, tenant covenant strength, and strata title management quality.
🏭 Industrial & B1/B2 Factory Units
Covers warehouse spaces, factories, or industrial workshops zoned under URA’s B1/B2 usage.
Loan Tenure: Typically up to 20 years
LTV: Up to 70% (freehold); 60% or less for leasehold (especially <60 years remaining)
CPF: Not eligible for use; 100% cash/downpayment required.
🏨 Hotel & Serviced Apartment Properties
Usually handled on a case-by-case basis with custom underwriting.
- Higher risk category
- Typically shorter loan tenures and lower LTV
- Requires business financials and income projections
🚫 Non-Financeable Properties (Selected Cases)
Banks may not finance:
- Short remaining leasehold (less than 30 years)
- Certain entertainment or nightlife-zoned properties
- Properties not approved for commercial use under URA guidelines
💡 Did You Know?
If you’re buying as a company, LTV limits and interest rates may differ — but banks are often more flexible if the property will be owner-occupied.
✅ At Ace Mortgage Advisory, we help you:
- Identify which property types best fit your financing capacity
- Understand LTV eligibility under personal vs business ownership
- Match you with banks most familiar with your commercial sector
🟢💬 Request a Commercial Loan Assessment Now — and get expert advice tailored to your property type.
Legal, Valuation & Other Costs Involved in a Commercial Property Loan
When purchasing or refinancing a commercial property in Singapore, it’s important to budget not just for your downpayment — but also for the legal and valuation costs associated with your commercial loan. These fees vary by bank, property type, and ownership structure (individual vs business entity).
Here’s a breakdown of the common charges:
💼 1. Legal Fees (Conveyancing & Loan Agreement Drafting)
| Ownership Type | Estimated Legal Fees |
|---|---|
| Individual Buyer | $2,800 – $4,000 |
| Company Buyer | $3,000 – $5,000+ |
Note: Some banks may subsidize legal fees partially — usually only for refinancing cases with high loan quantum.
🏢 2. Property Valuation Fees
| Property Type | Typical Valuation Fee |
|---|---|
| Retail / Office Unit | $500 – $1,000 |
| Shophouse | $800 – $1,500 |
| Industrial / Factory | $600 – $1,200 |
For larger or more unique commercial units (e.g., conservation buildings), valuation fees may be higher due to complexity.
📊 3. Bank Admin & Processing Fees
- Most commercial loan packages come with upfront processing or commitment fees.
- Processing Fees: 0.5% to 1% of loan amount
- Facility Fee (for equity term loans): may apply separately
- Prepayment Penalties: typically 1.5% during lock-in period
💡 Good to Know:
- Legal and valuation subsidies are more common in refinancing cases than in purchases.
- Commercial property purchases do not qualify for CPF usage — so all costs must be paid in cash.
- Some banks may offer legal panels with negotiated fees — but you are free to choose your own lawyer as long as they’re on the bank’s approved list.
✅ At Ace Mortgage Advisory, we help you:
- Get fee quotes from multiple law firms & valuation panels
- Maximize any available subsidies (especially for refinancing)
- Avoid unnecessary charges or hidden loan costs
🟢💬 Speak to a Mortgage Consultant Today — For a full cost breakdown tailored to your commercial loan.
When to Refinance a Commercial Property in Singapore (Latest Guide)
Refinancing a commercial property loan isn’t just about chasing lower rates — it’s about strategically unlocking capital, optimizing loan structure, and future-proofing your business or investment portfolio.
Whether you’re a business owner, investor, or landlord, timing your refinance well can significantly impact your cash flow and long-term gains.
📅 Top Triggers That Signal It’s Time to Refinance:
🔓 1. Lock-In Period Expiry
If your current commercial loan lock-in period is ending, it’s the perfect time to switch to a more competitive package without paying prepayment penalties. Many banks offer refinancing subsidies to attract borrowers at this stage.
📉 2. Current Rate Is Higher Than Market Average
Commercial loan rates have dropped or stabilized in 2025 — especially with 3M SORA-linked floating rates now trending between 3.4% to 3.8% p.a.
If your current loan is above 4.5%, you may be overpaying.
💼 3. Your Business Needs to Free Up Cash
If your commercial property has appreciated in value, refinancing lets you extract equity through a term loan facility. This capital can be reinvested into operations, renovation, or business expansion.
📊 4. Loan Tenure Is No Longer Suitable
Whether you’re looking to extend your loan for lower monthly obligations or shorten it to reduce interest, refinancing helps you restructure your commercial loan tenure according to current financial needs.
🏦 5. Better Packages Are Available
Banks often offer preferential refinance rates to high-value commercial loan clients. If your outstanding loan is >$1 million, you may qualify for bespoke rates or private banking packages.
💡 Pro Tip:
Refinancing a commercial property usually takes 4–6 weeks. Start early — ideally 2–3 months before your lock-in ends — to compare packages, secure IPA approval, and avoid rushed decisions.
✅ What We Help You Do at Ace Mortgage Advisory:
- Assess your break-even point vs legal/valuation costs
- Compare refinancing offers across DBS, OCBC, UOB, HSBC, Maybank & others
- Negotiate better terms, including partial fee subsidies
- Assist with equity-term loan structuring (if needed)
🟢💬 Chat with Our Advisors — Assess if it’s time to refinance your commercial loan.
Unlock Capital with Equity-Term Financing on Commercial Properties in Singapore
If your commercial property has appreciated in value or your outstanding loan has been significantly paid down, you may be sitting on untapped capital. Equity-term financing — also known as a cash-out refinance — lets you convert that built-up equity into working capital for your business or investments.
At Ace Mortgage Advisory, we help commercial property owners in Singapore access equity locked in their properties — with no sale, no new purchase, and no disruption to operations.
💰 What Is Equity-Term Financing?
Equity-term financing is a special type of refinancing where you borrow additional funds based on the current market value of your commercial property, minus your outstanding loan balance and applicable loan-to-value (LTV) limits.
It’s commonly used for:
- Business expansion or renovation
- Equipment or inventory financing
- Consolidating high-interest debts
- Building liquidity for strategic investments
- Funding a second property acquisition
📊 Example Scenario:
| Property Market Value | $4,000,000 |
|---|---|
| Outstanding Loan | $2,000,000 |
| Max LTV (up to 80%) | $3,200,000 |
| Potential Cash-Out | $1,200,000 |
Subject to valuation, income assessment, credit standing, and bank limits.
🔍 Eligibility Criteria:
- Commercial/industrial property under company or personal name
- Property must be completed (no ongoing construction)
- Business or personal income must support increased debt servicing (TDSR applies)
- Subject to valuation, loan tenure, and bank-specific LTV limits
🏦 Why Equity Financing Beats Business Loans:
| Equity-Term Loan | Business Term Loan |
|---|---|
| ~3.5% p.a. (secured) | ~7–10% p.a. (unsecured) |
| Up to 25–30 year tenure | 1–5 year tenure |
| Higher quantum | Lower quantum |
| Backed by property asset | Backed by company cash flow |
✅ What We Help You Do:
- Assess your property’s equity potential
- Structure the loan for minimal interest impact
- Compare cash-out packages across all major banks
- Navigate legal, valuation, and CPF structuring (if needed)
🔵 Ready to Unlock Capital?
Tap into your commercial property’s hidden potential with a no-obligation consultation.
🟢💬 Speak to an Advisor Today — Get a Free Equity Financing Assessment
Should You Hold Your Commercial Property Under a Company or Personal Name?
One of the most overlooked — yet strategically important — aspects of buying or refinancing commercial property in Singapore is how you structure ownership. Whether you purchase the property under your personal name, a business entity, or a holding/investment company, your decision will impact not just loan eligibility, but also taxation, cash flow, and long-term exit strategies.
At Ace Mortgage Advisory, we help you make the right structuring decision from the start — balancing financing flexibility, compliance, and long-term profitability.
📌 Ownership Options for Commercial Property in Singapore:
| Ownership Type | Key Benefits | Key Considerations |
|---|---|---|
| Individual | – Easier mortgage approval (especially for salaried borrowers) – Lower upfront compliance costs | – Personal liability exposure – TDSR applies to all personal debt obligations |
| Private Limited (Pte Ltd) | – More tax-efficient – Flexible shareholder structure – Personal asset protection | – Higher upfront legal, accounting, and compliance costs – Loan approval depends on company financials |
| Investment Holding Company (SPV) | – Useful for joint ventures and multiple property investments – Common structure for SPVs | – May incur higher interest rates – Loans usually require director guarantees – May not qualify for some subsidies |
📊 Impact on Loan Approval & Terms:
| Criteria | Individual | Company |
|---|---|---|
| Loan Quantum (LTV) | Up to 80% | Up to 60%–70% (varies by bank & profile) |
| Interest Rates | Slightly lower | 0.25–0.75% higher (due to risk profile) |
| Tenure | Up to 30 years | Typically capped at 15–25 years |
| Income Assessment | Personal income (TDSR) | Company revenue, profit, and director’s guarantees |
| Subsidies & Legal Costs | Lower overall | Higher conveyancing, legal, and setup fees |
🧠 When to Consider Buying Under a Company:
- You plan to lease out the property as a business asset
- You’re investing jointly with business partners
- You want to ring-fence liability away from personal finances
- You want to enjoy tax-deductible mortgage interest (subject to IRAS conditions)
✅ What Ace Mortgage Helps You Do:
- Evaluate personal vs business ownership based on your goals
- Structure your application for optimal loan approval
- Connect you with accountants or legal partners (for setup & compliance)
- Plan an exit strategy (e.g., sale, equity term loan, asset transfer)
Unsure How to Structure Your Commercial Property Loan?
Speak with our advisors for a personalized breakdown — and choose the most strategic path for your investment.
Apply for a Commercial Property Loan in Singapore — Fast, Guided & Free
Whether you’re acquiring a new office space, refinancing your existing shophouse mortgage, or funding a warehouse or industrial unit, getting your commercial property loan right is crucial for long-term business success.
At Ace Mortgage Advisory, we make the entire process fast, simple, and stress-free — with zero fees to you. From comparing bank offers to full application and legal coordination, we manage everything.
✅ How the Commercial Loan Application Process Works:
1. Get Expert Loan Advice (Free Consultation)
Chat with our commercial loan advisors via WhatsApp or phone to understand your eligibility and financing strategy.
We’ll help assess your loan quantum, tenure, ownership structure, and documentation needs.
2. Compare Bank Packages
We source the latest commercial loan offers from DBS, OCBC, UOB, Maybank, Standard Chartered, and more.
You’ll receive tailored recommendations for fixed vs floating packages, lock-in terms, subsidies, and more.
3. Prepare & Submit Documents
We assist in preparing the required paperwork for your loan application — including income documents, tenancy agreements (if applicable), corporate profiles, property details, and bank statements.
4. Legal Coordination & Disbursement
Once approved, we liaise directly with your chosen law firm and the bank to ensure smooth legal processing and timely disbursement.
You’ll receive full support at every step — without the headaches.
📎 Documents Typically Required:
| Individual | Corporate Entity |
|---|---|
| NRIC / Passport | Company ACRA Bizfile |
| Latest 2 years NOA (for self-employed) | Last 2 years audited accounts / NOA |
| Property details & tenancy agreements | Director’s NRIC + income proof |
| Bank statements | Company bank statements (6–12 months) |
💡 Why Apply with Ace Mortgage Advisory?
✔ Full access to the best commercial loan rates in Singapore
✔ Independent, unbiased recommendations — not tied to any one bank
✔ Complete application support — from paperwork to legal disbursement
✔ No fees charged to you — banks pay us so you don’t have to
🔵 Ready to Get Started?
Click below to speak with a commercial loan specialist today — and let us help you unlock smarter property financing for your business or investment.
🟢💬 Apply for Commercial Property Loan
⏱️ Takes less than 2 minutes. No fees, no pressure — just clear, expert help.
🏢 How to Apply for a Commercial Property Loan in Singapore
We’ll Handle Your Loan for a Commercial Property
1. Compare Commercial Loan Packages
We compare commercial mortgage packages from top banks like DBS, OCBC, and UOB, tailored to your property type, ownership structure, and credit profile. Whether it's a new purchase or refinance, we’ll help you understand fixed, floating, or equity-term options with clear repayment breakdowns.
2. Apply for In-Principle Approval (IPA)
Before proceeding, banks require an In-Principle Approval (IPA) to assess your loan eligibility and repayment capacity. We guide you through the process, clarifying how much you or your company can borrow, CPF and cash requirements, expected monthly instalments, and potential subsidies or fee waivers.
3. Submit & Leave the Legal Work to Us
Once you’ve chosen a bank offer, we handle all coordination with your lawyer and the bank’s commercial lending team — from legal documents and valuation reports to the letter of offer and CPF instructions — so you can focus on your business while we manage the details.
4. Disbursement & Property Ownership Completion
After legal completion, your loan is disbursed and repayments begin—often at better rates or terms. We’ll also monitor your loan and advise on repricing or refinancing when needed.
Hi Ace Mortgage, thank you so much for helping us secure our BTO loan! Your explanation on CPF usage and MSR was super clear — really helped us feel confident signing the papers!
Alvin & Shermaine
First-timer Home Owners
Appreciate the fast response and honest advice. I compared 4 banks but your recommendation turned out to be the best fit for my needs. Zero fees and fuss-free!
Desmond Tay
IT Engineer
Honestly, I didn’t know where to start with refinancing, but you guys guided me through every step. Thank you for helping me save on interest!
Shermaine Goh
Housewife
感谢 Ace Mortgage 帮助我们办理公寓贷款！你们提供的比较明细让我们很容易就做出了决定。
王丽文
Chinese National (PR)
Was worried about my income structure, but Ace Mortgage helped me use the show funds method and explained everything patiently. Highly recommend!
Leslie Chen
Business Owner
We just got our IPA approved thanks to your guidance! The whole process was way smoother than we expected. Super thankful 🙏
Darren & Jerlyn
New Homeowners
Shoutout to Ace Mortgage for being so prompt and detailed. Explained lock-in periods and penalties clearly — now I finally understand what I’m signing!
Julian S.
Foreign Investor
Great experience working with your team. Transparent, responsive, and no sales pressure at all. Wouldn’t have gotten this deal directly with the bank
Mdm Tan
Teacher
Get Help with Your Loan for Industrual Property — At Lowest Commercial Lending Rates
Whether you’re buying a new commercial unit, refinancing an existing mortgage, or exploring equity-term financing for your business, Ace Mortgage Advisory offers 100% free, expert guidance to help you structure your loan right — and save more.
Comprehensive Mortgage Advisory Services
Take up a housing loan with your preferred bank:
Refinance or New Property Loan for All Property Types:
Get Home Loan IPA & Calculate Affordability:
Join other homeowners
in Singapore
Get insider mortgage tips, exclusive rate updates, and smart property insights — straight to your inbox.