Unlock the value sitting in your Singapore property. Whether you need capital for an investment, a business move, or just an emergency liquidity buffer, an equity term loan or cash-out refinance lets you borrow against your home at competitive bank rates.
Advised by Dan Ler, Nexus Mortgage — an independent broker comparing 16 banks. Guidance follows MAS rules in force; the service is free to borrowers.
Two names, one product. A cash-out refinance (when the property still carries a mortgage) and an equity term loan (when it's fully paid) work the same way — you borrow against equity you already own and take the difference as cash. What actually changes your LTV, pricing and rules is whether the property is residential or commercial. For the full method and worked examples, see our cash-out refinance guide and the Complete Singapore Mortgage Guide.
Short answer: a cash-out refinance (mortgaged) or equity term loan (fully paid) lets you borrow against a property you already own. Residential unlocks up to 75% of value (or 55% fully paid) at ordinary home-loan rates; owner-occupied commercial up to 80–90% with no CPF deduction. HDB flats don't qualify.
| Feature | Residential | Commercial |
|---|---|---|
| Eligible property | Private condo, landed, EC past MOP (HDB excluded) | Shophouse, office, retail, industrial |
| Max LTV — still mortgaged | Up to 75% (combined with loan) | Up to 80–90% (owner-occupied) |
| Max LTV — fully paid | Up to 55% of valuation | Up to 80–90% (owner-occupied) |
| CPF deduction | Yes — CPF used is netted off the cash-out | None — CPF can't fund commercial |
| Income test | Personal TDSR 55% (4% stress-test) | TDSR 55%, or business financials if company-held |
| Indicative rate | Home-loan pricing — fixed from ~1.4% or SORA-pegged | Commercial property-loan rates — intro from ~1.08–1.28% |
| Tenure | Up to 30 years (or 75 − age) | Up to 30 years (often shorter for company borrowers) |
Note: HDB flats are not eligible for cash-out — MAS rules prohibit equity loans on HDB property. TDSR (55% of stress-tested income) applies to individual borrowers; commercial facilities held by a company are assessed on business financials instead.
Commercial and industrial property is not bound by the MAS residential LTV caps. On a fully-paid commercial unit, banks routinely assess equity term loans well above the 55% residential ceiling — up to 80–90% LTV for owner-occupied premises, and typically 60–75% where the unit is tenanted for rental income. Because CPF can't be used on commercial property, there's no CPF accrued-interest deduction reducing your cash-out.
Worked example: a fully-paid commercial unit valued at S$5.5M, owner-occupied, can unlock roughly S$4.4M–4.95M at 80–90% LTV — funding equipment, expansion or working capital at mortgage rates far below an unsecured business term loan. Exact LTV, rate and tenure are set by each bank's credit assessment. For purchase financing, see our commercial property loan service and the 2026 commercial loan rates & eligibility guide.
Bank equity rates from ~1.4% — priced like an ordinary home loan — are dramatically cheaper than personal loans (5–7%) or business term loans (4–6%). Owners often deploy unlocked equity into a second property, REITs, or business expansion.
Self-employed and SME owners use equity loans to fund expansion, inventory, or a buyout. The rate cushion vs unsecured business credit is usually 3–5 percentage points.
Major life events — medical, education, or a renovation — sometimes call for a fast pool of capital without touching CPF or fixed deposits. An equity term loan delivers it inside 4–6 weeks.
Three milestones, fully managed end to end. Most cases close within 4–6 weeks.
Bank-appointed valuer assesses current market value. We confirm your eligible LTV, run the TDSR check, and shortlist 2–3 lender packages.
Submit documents, lock in the rate, and receive the Letter of Offer. We negotiate spread, lock-in flexibility, and any prepayment terms on your behalf.
Solicitor handles mortgage documents and CPF/IRAS coordination if needed. Funds are drawn down to your bank account on the agreed date.
Indicative only — final eligibility depends on bank valuation, TDSR, and credit profile. Use this as a starting point.
Result updates live. We never store your numbers.
Use bank-appointed valuation if known, otherwise a recent caveat as proxy.
Current bank loan principal still owed.
Amount currently in CPF charge — must be deducted from cash-out for residential property.
Both let you borrow against the equity in a property you already own and take the difference as cash. A cash-out refinance applies when the property still carries a mortgage; an equity term loan applies when it is fully paid. The mechanics are the same — what changes your LTV, rate and rules is whether the property is residential or commercial.
No. HDB flats are not eligible for cash-out or equity term loans — MAS rules prohibit equity loans on HDB property. Only private residential property (condos, landed), ECs past their 5-year MOP, and commercial / industrial property qualify.
Residential: up to 75% of value combined with any existing mortgage, or up to 55% on a fully-paid home — then less your outstanding loan and less the CPF principal plus accrued interest used. Owner-occupied commercial: up to 80–90% of value with no CPF deduction. Final eligibility is subject to TDSR and bank credit assessment.
A residential cash-out is priced like an ordinary home loan — fixed from around 1.4% p.a. in 2026, or a SORA-pegged package. Commercial equity is priced on commercial property-loan rates, with intro packages seen from around 1.08–1.28% p.a. All rates are subject to bank assessment and move with the SORA cycle — see our live rates page.
Yes. Commercial and industrial property is not bound by the MAS residential LTV caps. Owner-occupied premises can be assessed up to 80–90% LTV, and tenanted units typically 60–75%. There is no CPF deduction. Where the facility is held by an operating company, income is assessed on business financials rather than personal TDSR.
From valuation to drawdown, we manage every step — and you stay in the best lender's hands. Free service, no upfront cost.
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