New Loan (Commercial)
Singapore commercial property loans for shophouse, industrial property, retail shop, factory and office unit enable businesses to purchase land, buildings, and other property without draining your finances. If you’re seeking funding for apartment, office, hotel, industrial, or retail property loans, our service-oriented Mortgage Brokers are here to assist you. Whether you are a seasoned investor or new to the market, we’ll help you explore your options and secure the best deal for your unique commercial property financing needs.
Mortgage Planning for Commercial Property Loans
Much like a home mortgage, a commercial property loan uses the property being purchased as collateral against the loan, and commercial mortgage lenders use guidelines very similar to those for residential mortgage loans. The key difference is in the fact that the company’s financial status is considered more heavily than the individual directors’/ borrowers’ financial health in whether the loan will be approved or not. Also, commercial property loans typically require a longer processing time than residential loans.
Key factors that require careful attention include:
determining loan tenure dependent on lease of property
determining the company’s credit worthiness
compiling complete documentation detailing the company’s audited accounts
finding the most competitive interest rate package
determining the Loan to Value (LTV) – the margin at which lenders determine whether the loan amount falls within an acceptable range based on the valuation of the property that the loan will be used to secure.
These considerations are essential to successfully securing a fiscally responsible and suitable commercial property loan. However, many companies are in danger of falling into a dangerous debt trap by failing to properly plan for their commercial property purchases and investments. To help you understand these pitfalls, we have compiled a list of the typical mistakes committed by even very experienced and savvy business owners – and how you can avoid them.
Common Commercial Property Loan Mistakes (and how to avoid them)
1. Documentation is not fully prepared and furnished
A commercial loan application is necessarily more complex than a residential loan. Lenders are more stringent with commercial loans, requiring a complete set documentation including a comprehensive business profile, financial statements, audited accounts, proper identification of all owners and directors, and more. If your documentation is lacking the required detail, costly delays in processing your loan may occur, causing you to miss out on the property you need – or worst case, your loan application can be denied.
SMP Mortgage Brokers are specially trained in identifying and compiling the documentation needed for various commercial loan applications in the Singapore area and internationally. We’ll help you navigate intricate requirements and put together a loan application package that enables loan officers to answer your application as quickly and as smoothly as possible.
2. Working directly with a lender
Businesses should be sure to conduct a diligent review of all available loan deals in order to widen the scope of options. After all, having choices is always good. It doesn’t hurt to do business with a favourite lender; however, without researching all of your options, you could miss out on a much more lucrative deal by not fully checking out the competition.
Because our SMP Mortgage Brokers work exclusively with choice banks and financial institutions throughout the Singapore and international markets, they are up to date on current lowest interest rates, loan packages, and regulations involved. Their targeted expertise is further supplemented by our exclusive SMP Mortgage Planning Software, which receives live updates in changes to the market – enabling them to zero in on current loan packages that suit your unique needs. Bottom line: working with a SMP Mortgage Broker saves you a substantial amount of time in fully researching your options.
3. Failing to recognize and secure the best deal
Though many commercial property loan packages exist in Singapore market, sourcing out the best one with the most favourable terms for your particular situation is usually very troublesome. Simply making a list of those deals is just the first step. The task of thoroughly scrutinising the offerings in light of your financial situation always pays off in identifying the loan that works best for you. This requires time as well as deep industry experience – which most business owners don’t have in this area.
SMP Mortgage Brokers do have that industry knowledge and experience – it’s what we exist for. We specialize in all sorts of commercial property loans, and our brokers are expert at analyzing the options and explaining to you the fine points of each package so you can make informed decisions. Our services streamline the mortgage application process for you, and help you choose the very best deal for the health of your business, today and tomorrow.
So… why should I work with SMP Mortgage Brokers instead of directly with a Commercial Bank?
As a business owner, you know that time is one of your most valuable assets, and by allowing SMP Mortgage Brokers to guide you in finding and securing your next commercial property loan, you’ll save a ton of it!
Our experienced and highly trained Mortgage Brokers not only help you identify the best deal for your business, but also assist you throughout the intricate commercial property loan application process – all the way to securing the loan and “signing on the dotted line”.
With SMP, you:
save massive time in researching options
benefit from our deep industry knowledge and up-to-the-minute market information
enjoy the confidence of knowing you’ve sealed the best deal possible for your business’s health
So take advantage of the speed and product knowledge that a dedicated SMP Mortgage Broker provides. Our services are completely FREE, so let us do what we do best so you can get back to doing what you do best.
Did you know that…
…it typically takes longer to process a commercial property loan application?
…interest rates for commercial property loans are usually higher than those for residential mortgages?
…rates for commercial residential shophouse can qualify for residential rates, which can lower your interest rates?
Engaging the services of an experienced mortgage broker to assist you in your application will save you time and money. Working with SMP costs you nothing, and frees up your time so you can get back to running your business.