Financing an industrial unit at Space Nova works differently from a residential home loan. This page outlines the key considerations — loan-to-value limits, tenure, and how freehold tenure supports financing — for buyers of this freehold B1 development at 21 New Industrial Road. Figures are indicative; confirm with your bank and MAS guidelines.
Industrial and commercial property loans work differently from residential mortgages. There is no fixed, MAS-prescribed LTV ceiling for non-residential property — instead, each bank sets its own limit based on the borrower's profile, the property and how it will be used. Many approvals sit in the 70%–80% range, though strong owner-occupier cases can reach higher. The figure varies meaningfully with the factors below:
| Factor | Effect on LTV |
|---|---|
| Owner-occupied (own business use) | Higher — up to ~90% in strong cases |
| Investment / rented out | Up to ~80%, bank-assessed |
| Existing residential mortgage(s) outstanding | Can reduce LTV materially (a first commercial loan may be assessed nearer ~55%) |
| Borrower strength & property valuation | Bank-assessed case by case |
Indicative ranges only — there is no fixed statutory LTV for non-residential property; each bank decides. Actual LTV depends on use (owner-occupier vs investment), your existing property loans, borrower strength and the bank's valuation. Confirm with your bank before commitment.
| Typical maximum tenure | Commonly up to 25–30 years (lender and age dependent) |
|---|---|
| Debt-servicing assessment | TDSR (55% cap) applies to individual borrowers — including sole proprietors and individuals setting up a company solely to buy the property. It does not apply to companies, which are assessed on company financials/cash flow instead. |
| Stress-test interest floor | Banks apply a stress-test rate above the actual rate when assessing affordability |
| CPF usage | CPF generally cannot be used for non-residential (industrial) property — financing is via cash and bank loan |
Indicative guidance. Industrial financing terms vary by bank — verify current terms with your lender and against MAS rules.
One often-overlooked benefit of Space Nova's freehold tenure is its effect on financing. Lenders generally view a freehold or long-tenure industrial asset more favourably than one with a rapidly depleting lease, which can support both the loan quantum at purchase and refinancing options later. A 30-year leasehold industrial unit, by contrast, can face tightening financing as the lease shortens. Freehold removes that constraint.
Financing is one piece of the picture. Combine it with the stamp duty and GST treatment and the progressive payment scheme to understand your total cost of acquisition. When you are ready, register your interest or contact the team to discuss financing for your purchase.
Freehold industrial like Space Nova rarely comes to market. Register now to receive the brochure, indicative price guide and balance units ahead of public release.