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Understanding Mortgage-Backed Working Capital Loan in Singapore
Mortgage-backed working capital loans are a form of financing that allows businesses to borrow money using their real estate assets as collateral. This type of loan is particularly beneficial for companies looking for a substantial cash influx to cover operational costs, fund expansion plans, or manage cash flow without selling their valuable property assets. Let's break down some of the key terms and concepts associated with this loan type to help you easily navigate the process.
Loan-To-Value (LTV) Financing:
- What it means:
LTV financing refers to the ratio of the loan amount to the value of the collateral (in this case, the property) expressed as a percentage. For instance, if a lender offers 80% LTV financing on a property valued at S$1,000,000, the maximum loan amount you can secure is S$800,000.
- Why it matters:
The LTV ratio determines how much you can borrow against your property. Higher LTV financing means you can access more capital, making it a critical factor when considering a mortgage-backed loan for working capital.
Total Debt Servicing Ratio (TDSR) Restriction:
- What it means:
The TDSR framework is a legal requirement that financial institutions must follow to ensure borrowers do not over-leverage themselves with debt. It limits the portion of a borrower's gross monthly income that can go towards servicing all monthly debt obligations to a specified percentage.
- Why it matters:
Traditional loans are subject to TDSR restrictions, which can limit the amount a business is eligible to borrow. However, mortgage-backed working capital loans from Tembusu Financial Services are not subject to TDSR restrictions, offering more flexibility and potentially higher loan amounts regardless of other debt obligations.
Benefits of Mortgage-Backed Working Capital Loans
Our mortgage-backed working capital loan leverages your property real estate for your business to gain access to loans and lines of credit. You may use your shareholder's properties, or the company's properties as collateral. Residential, commercial, and industrial properties all qualify.
Our mortgage-backed working capital loan is not subject to TDSR and LTV limits and comes with low interest rates, flexible repayment terms, and quick approvals.
Our mortgage loan products are underwritten and disbursed by TBS Capital, a subsidiary of Tembusu Financial Services.
Why our Mortgage Loan
1 Day Loan Approval
Low Interest Rate
80% LTV financing
Flexible Payment
High Approval Rate
No TDSR Restriction
No Additional Charges
How to Apply for a Mortgage Loan?
| Step 1: Assess Your Eligibility and Needs |
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Evaluate your company's financial situation and the real estate assets available for collateral. Consider the amount of working capital required and how it will support your business objectives. |
| Step 2: Initiate Your Application |
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Contact Tembusu Financial Services at (+65) 6741 2588 or through our website to express your interest in a mortgage-backed working capital loan. Our team will provide you with an overview of the application process and the documents needed. |
| Step 3: Submit Required Documentation |
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Gather and submit the necessary documentation, including details of the property to be used as collateral, company financial statements, and any other relevant information as advised by our team. |
| Step 4: Approval and Disbursement |
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Upon submission, our experts will review your application promptly. Thanks to our 1-day loan approval process, you can expect a swift response. Once approved, the loan will be disbursed by TBS Capital, allowing your business to access the needed working capital with ease. |
FAQs on Mortgage Loan
Most businesses with real estate assets can apply for this type of loan. However, eligibility criteria, such as the business's financial health, credit history, and property value, will be assessed to determine loan approval.
The loan amount is primarily based on the Loan-To-Value (LTV) ratio, which is a percentage of your property's current market value. The maximum loan amount also considers your business's financial health and repayment capability.
Required documentation typically includes proof of ownership of the property, business financial statements, proof of income, and any other documents that would provide a comprehensive view of your financial situation.
Our mortgage-backed working capital loans do not adhere to TDSR and LTV limits, offering more flexibility and higher potential loan amounts based on the value of your collateral.
With our streamlined process, loans can be approved within 1 day of submitting all required documentation, ensuring that your business doesn't miss out on crucial opportunities due to funding delays.
Find out more about our mortgage-backed working capital loan
Our team is always ready to answer questions about our mortgage loan in Singapore and guide you through the application process.
Personal Loan
Accredited investors can get an unsecured loan to be used for various purposes.
Business Loan
Companies can get our loan for their business needs in the form of overdraft, fixed term loan and equity loans.
Caveat Loan
We offer loans to companies and individuals based on the equity in their property.
Unsecured Loan
Companies can apply for our unsecured, uncollateralised loan based on their creditworthiness.
