Property Cashout Singapore — Unlock Your Property Equity to Fund Your Business

Property cashout in Singapore is the process of borrowing against the equity of a property you already own. Instead of selling the property, you take out a new loan (or top-up an existing mortgage) secured against the property’s value, and receive the difference in cash. This cash can be used for any purpose, including funding your business operations, expansion, or investment.

No. HDB flats cannot be used for property cashout or equity withdrawal in Singapore. MAS regulations do not permit HDB owners to draw cash above the outstanding loan balance against their flat. However, HDB flat owners can refinance their existing HDB loan to a bank mortgage — which may lower your interest rate and reduce your monthly repayment. If you are looking to unlock capital for your business, ThinkSME can explore alternative financing options for you, including SME business loans or cashout against commercial or private property you may own.

The amount you can borrow depends on your property’s current market value, the outstanding loan balance, and the applicable Loan-to-Value (LTV) ratio set by MAS. For residential properties, the LTV cap is typically 85%. For commercial and industrial properties, the LTV can go up to 80%. As a formula: Maximum Cashout = (Property Value × LTV Ratio) minus Outstanding Loan Balance minus CPF usage (if applicable).

Property cashout interest rates in Singapore typically range from 3.0% to 5.5% per annum, depending on the property type, lender’s offered rates and whether you choose a SORA-pegged floating rate or a fixed rate package. Think SME compares live rates across 60+ lenders to find you the best available rate.

Property cashout approval in Singapore typically takes 2 to 7 working days from submission of a complete application. The timeline depends on the lender, property type, and completeness of documentation. Think SME handles the entire application process on your behalf, including document preparation and lender liaison, to ensure the fastest possible approval. Let us know the urgency of the funds and we’ll try our best to match your timeline.

Yes. Unlike certain government SME loan schemes that restrict fund usage, property cashout proceeds are unrestricted. You can use the cash for any legitimate business purpose — including working capital, purchasing equipment, funding renovation, expanding into new markets, hiring staff, downpayment for property purchase or taking on a large contract.

Standard refinancing replaces your existing mortgage with a new one, typically to secure a lower interest rate. Your loan balance remains the same. Property cashout (or cash-out refinancing) goes a step further — you borrow more than your existing outstanding loan, and receive the additional amount as cash. Property cashout increases your loan balance but gives you immediate access to your property’s equity.

Yes. Company-owned commercial or industrial properties in Singapore can undergo cashout refinancing. The loan is assessed based on the company’s financials and the property’s value. Think SME works with both individual SME owners and Singapore-incorporated companies (Pte Ltd, LLP, sole proprietorships) to structure property cashout solutions.

It depends on whether the property cashout is done under a personal name or a company name. If the cashout is taken under your personal name, the new loan repayment will be included in your Total Debt Servicing Ratio (TDSR) calculation under MAS regulations, with a cap of 55% of gross monthly income. However, if the property cashout is structured under your company’s name (e.g. a Singapore-incorporated Pte Ltd), TDSR does not apply — making the company route significantly more flexible for larger cashout amounts. ThinkSME’s advisors will assess your situation and recommend the most suitable structure to maximise your borrowing capacity.

Think SME does not charge upfront fees for our property cashout advisory and loan matching services. Our initial consultation and eligibility assessment are completely free. Contact us today to find out how much you can unlock from your property.