Borrow Against Your Property —
With Advice That Puts You First

How Property-Backed Lending Works

If you own property in Singapore, it is likely your single largest asset — and it can be used as collateral to unlock capital without selling. Property-backed loans are secured against the equity in your property: the difference between its current market value and any outstanding mortgage. The lender takes a legal charge against the property, which gives them recourse if you default, and in return offers you a larger quantum and lower interest rate than an unsecured loan would provide.

The most common form is the equity term loan (ETL) — a lump-sum facility secured against your existing property. If your property is valued at $2 million with $800,000 outstanding on your mortgage, you have $1.2 million in equity. A bank may lend you a percentage of that equity as a separate facility. The exact percentage depends on the lender, the property type, your income, and your total debt obligations under TDSR regulations.

Bank ETL vs Private Lending

Banks offer the lowest rates on property-backed facilities but apply rigid criteria: income documentation requirements, TDSR compliance, property type restrictions (HDB flats generally cannot be used for ETLs), and processing timelines measured in weeks. If your profile is clean and the property is straightforward, a bank ETL is almost always the most cost-effective route.

Private credit lenders fill the space banks leave behind. They accept non-standard collateral (mixed-use properties, properties with unusual tenures, cross-border ownership structures), process faster, and apply less rigid income criteria. The cost is higher interest, but for borrowers who need capital that banks won't provide, the comparison isn't bank rate vs private rate — it's private rate vs no loan at all.

Licensed moneylenders can also offer property-backed facilities at smaller quantums with faster approval, particularly useful as short-term bridges while a bank facility is being processed.

Loan-to-Value: What to Realistically Expect

LTV ratios in Singapore are regulated and vary by property type and borrower status. For owner-occupied residential properties with no existing mortgage, banks may lend up to 75% of the valuation. With an existing mortgage, the combined LTV is capped lower. Investment properties attract stricter limits. Private lenders set their own LTV thresholds, sometimes higher than banks, but compensate with higher rates and shorter tenures.

The number that matters more than LTV is your net equity after all charges — the actual capital you can unlock. CraftWise calculates this for you upfront so you know what's realistic before any application is submitted.

The Risks — Explained Honestly

Property-backed borrowing puts your most valuable asset on the line. If you cannot repay and cannot refinance or restructure, the lender has the legal right to force a sale. This is not a theoretical risk — it happens, and it happens most often to borrowers who didn't plan their exit before they borrowed.

Exit planning is non-negotiable in CraftWise's process. Before we recommend any property-backed facility, we work through how you will repay or refinance the loan. Will business income service the repayments? Will you sell the property or another asset? Will you refinance into a longer-term bank facility once your situation stabilises? If there's no credible exit, we won't recommend the loan — regardless of whether a lender would approve it.

Common Uses for Property-Backed Loans

Business capital: Funding expansion, bridging cash flow gaps, or capitalising a new venture using equity in personal property.

Property acquisition: Using equity in one property as part of the funding structure for acquiring another — common for investors building a portfolio.

Debt consolidation: Replacing multiple high-interest unsecured debts with a single secured facility at a lower rate, reducing total interest cost.

Bridge financing: Short-term capital needed between selling one property and completing the purchase of another, or while waiting for a bank facility to process.

How CraftWise Advises on Property-Backed Loans

We start with your objective — why you need the capital and what outcome looks like — then work backwards through the structure: which lender type fits, what quantum is realistic, what the total cost will be, and how you'll exit. We present options across banks, private credit, and licensed moneylenders so you can compare them side by side with full transparency on rates, fees, and conditions.

For how our fees work across all loan types, see our fee transparency page. For a broader comparison of lender types, see our lender comparison guide.