Industrial Property Loans in Singapore 2026 — Bank Rates, LTV & Financing Guide

By SG Industrial Group · 2026-05-03 · 476 words

How Industrial Property Loans Work in Singapore

Financing an industrial property — a B1 light industrial unit, a B2 factory, a warehouse, or a ramp-up unit — works differently from a home loan in several important ways. In this guide, we walk through the key numbers: how much banks typically lend, the rate structures available in 2026, and what you should prepare before you apply.

Loan-to-Value (LTV): What Can You Borrow?

For industrial and commercial property in Singapore, banks generally lend 70% to 90% of the purchase price or valuation, whichever is lower. That means buyers typically prepare a downpayment of around 10% to 30%, plus stamp duty and legal fees. The actual LTV offered depends on your income profile, the property type and tenancy situation, and the bank's own policy — so it always pays to compare two or three packages before committing.

Rates in 2026: Floating, Fixed, or Hybrid

Since the transition away from SIBOR, most industrial loans in Singapore are priced off the Singapore Overnight Rate Average (SORA). You will generally see three structures:

• Floating — 3-month SORA plus a spread (for example, 3M SORA + 0.28%). This moves with the market.
• Fixed — a locked rate for the first 1 to 3 years (for example, 1.75% fixed in the first year), followed by a floating rate.
• Hybrid — part fixed and part floating, or a fixed first two years with a guaranteed conversion.

For the latest packages from the major banks, see our bank rates page, which we update every month with offers shared by bank representatives.

What Banks Look At

Banks assess industrial borrowers on similar fundamentals to residential buyers: your income and debt servicing ratio, credit history, and the property's valuation. For owner-occupiers, the tenancy situation matters less; for investors, the rentable income and lease profile of the unit help determine the package offered.

Costs Beyond the Price

Remember to budget for Buyer's Stamp Duty (BSD), which applies to industrial property at non-residential rates, plus legal and valuation fees. Crucially, industrial property in Singapore is exempt from ABSD — a major advantage when you compare total acquisition cost with residential property, where Additional Buyer's Stamp Duty can reach 20% to 60%.

Steps to Secure Your Loan

• Get an indicative quote from two to three banks, or through a mortgage broker.
• Prepare your income documents, notice of assessment, and the Option to Purchase.
• Confirm the LTV and rate structure in writing before exercising the option.
• Plan the drawdown timeline around your completion date.

Talk to the Industrial Specialists

Whether you are buying a B2 factory for your business or investing in a ramp-up unit, SG Industrial Group works with buyers and tenants across Singapore's industrial districts. Browse current listings, check the latest bank rates, or contact us to run the numbers for your next purchase.