Equity Release Singapore
Unlock Your Property's Value — Without Selling
If you own Singapore property with significant equity, you can borrow against it at mortgage rates — typically far lower than a business loan or personal loan. We calculate your TDSR position and maximum release amount before you commit to anything. 4–5% success-only fee.
How equity release works
You borrow against the equity in your property — the value above your outstanding loan. The new, larger mortgage replaces your existing one, and you receive the difference as cash. Your property stays in your name; you continue to live in it or rent it.
A worked example
TDSR is usually the binding limit, not LTV. Your income determines how large a mortgage you can service. We calculate your TDSR ceiling first — then tell you the maximum release your income supports.
Common uses for equity release
Business expansion
Property-backed rate of 3–4% vs 5.5–8% for a business loan. For working capital or capex over $200K, the saving can be substantial.
Investment
Using equity to invest in a second property, equities, or a business. We calculate whether the investment return justifies the borrowing cost.
Education
University fees for children studying overseas. Equity release at 3.5% is typically cheaper than education loans or personal loans.
Major renovation
A full A&A (addition and alteration) project often runs $150K–$400K. Equity release at mortgage rates is far cheaper than a renovation loan.
Equity release vs a business loan — the rate difference
Property-secured borrowing is cheaper than unsecured or business-secured borrowing. The gap is often 2–4% per year — which adds up significantly on large amounts.
| Loan type | Typical rate (April 2026) | Annual interest on $400K |
|---|---|---|
| Equity release (property-secured) | 3.0–4.5% p.a. | $12,000–$18,000 |
| EFS Working Capital Loan | 4.5–6.0% p.a. | $18,000–$24,000 |
| Business term loan (bank) | 5.5–7.5% p.a. | $22,000–$30,000 |
| Alternative lender business loan | 8–14% p.a. | $32,000–$56,000 |
Rates are indicative and depend on lender, loan amount, and borrower profile. The trade-off: equity release uses your property as security — a risk that business loans do not carry.
Case study
Bukit Timah homeowner released $400K equity to fund retail chain expansion
A client owned a freehold Bukit Timah property worth $3.2M with $800K outstanding on an existing mortgage. He was expanding his retail chain from 3 to 6 outlets and needed $400K for fit-out, inventory, and working capital.
His bank had offered a business term loan at 6.5% p.a. We ran the equity release calculation: at 75% LTV on $3.2M, the maximum new mortgage was $2.4M. After paying off the existing $800K, he could release $1.6M. With his income, TDSR allowed a mortgage of up to $1.2M — so we structured a release of $400K, giving a total mortgage of $1.2M.
The equity release was placed at 3.5% p.a. compared to the 6.5% business loan alternative. On $400K over 5 years, this saved him approximately $60,000 in interest. The TDSR increase was manageable, and his property remained fully in his name.
Rate saved: 3.0% p.a. (3.5% equity release vs 6.5% business loan) · Interest saving over 5 years: ~$60,000
Equity release vs business loan — when each makes sense
Use equity release when
- → You have significant property equity
- → Amount needed is $200K+
- → You are comfortable pledging property
- → Your income supports the enlarged mortgage
- → You want the lowest possible rate
Use a business loan when
- → You do not want property as security
- → TDSR does not support a larger mortgage
- → Amount is smaller and business P&L is strong
- → You want to keep property financing separate
- → EFS-backed loan is available at competitive rate
Equity release — frequently asked questions
What is equity release and how does it work in Singapore?
Equity release in Singapore involves borrowing against the equity you have built up in your property — the difference between the property's current market value and your outstanding loan. It works as a cash-out refinancing: you take a new, larger mortgage and receive the difference as cash. For example, if your property is worth $2M and your outstanding loan is $600K, you have $1.4M in equity. Depending on your TDSR position, you could potentially release $500K–$800K as cash while still keeping within the 75% LTV limit.
What can I use the equity release funds for?
There are no restrictions on how you use equity release funds in Singapore. Common uses include: business expansion or working capital (where equity release rates of 3–4% are far lower than business loan rates of 5.5–8%), education fees for children, home renovation or upgrading, investment in financial assets, and personal needs. The funds are yours — the lender only cares that you can service the larger loan within TDSR limits.
How does TDSR affect how much equity I can release?
TDSR is the binding constraint for equity release. Your total monthly debt repayments — including the new, larger mortgage after equity release — cannot exceed 55% of gross monthly income. So the maximum equity you can release is limited not just by the 75% LTV cap but also by what monthly repayment your income can support. For a $10,000/month gross income, the TDSR cap allows $5,500/month in total debt repayments. If your existing debts take up $2,000, the new mortgage repayment cannot exceed $3,500/month — which constrains your loan amount. We calculate your TDSR ceiling and maximum release amount before you proceed.
Is equity release cheaper than a business loan?
Usually yes — significantly cheaper. Property-secured borrowing typically carries rates of 3–4.5% p.a. Business loans — even EFS-backed loans — typically range from 4.5–8% p.a. depending on tenure and lender. For a $400,000 drawdown, the rate difference of 3% p.a. saves $12,000/year in interest. The trade-off is that your home is the security — if you default, your property is at risk. We make sure you understand this clearly before recommending equity release over a business loan.
Can I do a partial equity release, not the maximum?
Yes. You do not have to release the maximum amount TDSR allows. Many clients release a specific amount needed for a defined purpose — say, $300K for a business expansion — rather than maximising what is theoretically available. Releasing less means lower monthly repayments and a smaller increase in your outstanding loan. We structure the release to match the actual amount you need, not the maximum you could get.
Want the full picture on property financing in Singapore?
Read the complete property financing guide →Find out how much equity you can release.
We calculate your TDSR ceiling, maximum release amount, and compare property-secured rates against business loan alternatives — before you commit to anything.
Calculate my equity release →Last updated: April 2026