Features of a Commercial Property Purchase LoanPosted by Oscar Rosario on January 23rd, 2017 In Singapore, residential properties are the top choice for property investments. However, due to the rising prices of residential properties, more and more investors are now turning to commercial properties for the expansion of their investment portfolio. Banks in Singapore offer commercial property loans for commercial property purchases. Learn more about commercial mortgage loans here, and how they differ from residential mortgage loans.
Commercial property loans only apply to non-residential properties. Commercial properties come in the form of office spaces, warehouses, or supermarkets.
The loan tenure of commercial properties ranges from 20 to 30 years, while the loan tenure for residential properties can reach up to 35 years.
The interest rates for commercial properties are higher by about 0.5 to1% compared to residential property rates.
The requirements for a commercial loan are more stringent. Also, banks take extra caution in reviewing and assessing the loan applicant’s outstanding debts and credit history. If you are looking to own a second property as an investment, consider purchasing another residential property. Mortgage loan rates in Singapore for residential properties are attractive and affordable. Like it? Share it!More by this author |