Something about commercial land title and residential land title.
Residential land titles enable you to get financing rates and longer tenure at residential loan packages, normally at 90% loan.
Commercial land titles normally have higher assessment rates, quit rent and electricity and water bills at commercial rates which is more expensive.
In the past, you would need a commercial loan to finance a service apartment built on commercial land. And the tenure would normally be shorter and usually 70% loan. Not all banks offer commercial loans for private properties. I know Alliance Bank do not finance such loan in the past but not sure nowadays.
With the latest Bank Negara tight lending rules, can residential loan can be applied to commercial properties? Best to check it out before you sign on the dotted line.