What is the loan debt ratio for commercial property?

For commercial property loans in Singapore, the loan debt ratio is typically measured by the Loan-to-Value (LTV) ratio rather than the Total Debt Servicing Ratio (TDSR), which applies to individual borrowers for residential properties.

- The LTV ratio for commercial property loans can range from 80% to 90% of the property’s valuation or purchase price, whichever is lower. This is subject to the bank’s credit assessment.
- For properties intended for the business's own usage, banks often grant a higher LTV, usually up to 90%. However, for investment properties, the maximum LTV is typically lower, ranging from 60% to 70%.
- In some cases, banks can offer financing packages that include a combination of a mortgage loan and an unsecured business term loan, allowing businesses to finance up to 100% of the property’s purchase price.

It's important to note that commercial property loans are assessed based on various factors, including the business's operating history, annual revenue, financial figures, and the profile of the property being financed, rather than a standardized TDSR.