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Introduction

In Singapore, commercial property investment can be a very profitable venture for informed investors or Businesses. Often seen as a domain for sophisticated investors and investment holding companies, commercial property investment can also be a suitable investment choice for new players – if you have the right knowledge, strategies and mind-set going in.

EasyRates makes obtaining the ideal commercial property loan simple, efficient and fuss free. With connections to over 20 banks around the country, we have the networks, expertise and knowhow in this field to offer you the best advice and loan offers anywhere in Singapore.

To locate the best loan for your commercial property purchase, use our powerful Loan Comparison Tool and receive loan offers in seconds.

Beginner's Mistakes

There are numerous commercial property loans available. Before committing yourself to a loan, it is important to assess your level of risk. By evaluating all the possible commercial factors, you can avoid risks and anticipate shocks in the market.

When sourcing for a commercial property loan, think about the affordability of your desired property and the strength of your cash position. You should also ask if you have sufficient cash to tide you over an economic downturn, and if you can afford loans with fluctuating interest rates (or if you would prefer the security of a fixed interest rate).

Common Beginners’ Mistakes

1. Neglecting due diligence in checking property condition before purchasing.
2. Miscalculating value by relying on inaccurate projections of potential income and expenses, instead of real operating figures.
3. Jumping into the market as a speculator. The commercial property investment space is highly profitable for informed, savvy investors – not for speculators.
4. Poor cashflow management, not understanding all the costs involved with acquiring and holding commercial property.
5. Not establishing your business plan in detail to the bank or financial company.
6. If you are a Small Medium Enterprise (SME) or start-up, having a small paid-up capital instead of shoring up a realistic paid-up capital in comparison to the loan you are applying for.
7. Over-leveraging by borrowing too much money (and incurring higher repayment rates than necessary).
8. Not properly calculating your projected income, which will determine your ability to comfortably make payments on your loan.
9. Having a less than commendable credit rating, which affects your credibility where the bank is concerned.
10. Not having anything to offer up as collateral (this may have you labelled as a higher risk borrower, possibly increasing your interest rates).
11. Failing to plan for multiple exit strategies
12. Neglecting to seek advice before investing. Leverage on our consultants for professional, unbiased advice on commercial property loans to equip yourself with the knowledge you need to make a sound investment decision

Why Us ?

At EasyRates, we understand that purchasing commercial property is a big decision. With recent cooling measures and the implementation of a total debt servicing ratio (TDSR), Singaporean investors are considering alternative investments such as commercial and industrial properties, which until recently has been dominated by sophisticated investors and companies.

Whether you are a retail investor or seasoned commercial property guru, we want to assist you by giving you the knowledge, tools and resources to make obtaining your commercial property loan a smooth, straightforward process.

We will provide you with as much (or as little) help as you want – whether this means simply giving you access to a suite of valuable tools to help you make an informed decision, or holding your hand and guiding you each and every step of the commercial property loan consideration, shortlisting and selection process.

Consultancy Services

We provide professional consultation for commercial property purchases (advised by our Managing Consultant) at a fee of $250 per hour. This fee will be reimbursed to you once your loan is approved. Note: For a limited time only, the one-on-one consultation with our Managing Consultant is free until further notice.

Why Commercial Property Buyers are Raving Over EasyRates

One-Stop Hub

We provide more than just home loans, we are a one-stop hub for all complimentary needs, including refinancing, equity loans, commercial property loans, personal and business loans, insurance and investments

Personalised Guidance

Lost? Don’t be. Chat with our consultants, they’ll guide you through the entire home loan selection and application process.

Prompt Response

There’s no waiting around with EasyRates. We promise to reply to your applications and questions within 24 hours.

Best Rates

Get offers for the most competitive home loan rates in Singapore.

Comprehensive Home Loan Comparisons

Find the best, most suitable loans within seconds – from the convenience of your computer or mobile device.

Strong Partnership with Banks

We partner with the top banks in Singapore to offer you the most attractive, comprehensive home loan offers

Frequently Asked Questions (FAQ)

What are the different types of commercial properties available in Singapore?

Commercial property in Singapore is considered as (but not limited to):

Offices
Retail shops/outlets
Shophouses
Hotels
Conservation properties
…and others

What is the standard tenure of commercial properties?

Commercial spaces in Singapore usually come with a 30, 60, 99, or 999-year lease, with most tenures being between 60 to 99 years. Freehold commercial spaces are available, but rare.

Can I use my Central Provident Fund (CPF) to settle the down payment for a commercial property?

No, the down payment has to be wholly funded by cash.

How is the value of commercial property evaluated?

The value of a piece of commercial property is based on a combination of factors, usually including:

Property tenure
Property type
Rental yield
GST registration
Return on invested capital
Management fees
Mortgage interest rates

What is the property tax?

The tax is a flat 10% of the annual value of the property. If you fail to lease out the space, a vacancy refund of the property tax may be applicable.

What is the Goods and Services Tax (GST)?

If you are a GST-registered company, the buying of commercial spaces is subjected to a 7% GST. If you are an individual making the purchase, you will have to bear the GST yourself.

How much can I get for a commercial property loan?

A loan-to-value ratio (LTV) of up to 80% is allowed, even with outstanding residential mortgages, with the usual maximum loan tenure standing up to 30 years. Loans for commercial properties tend to command a higher interest rate relative to residential property loans. These loans come in either a fixed rate package or a variable rate package.