5 Ways For Property Owners To Tide Through Crises (Updated)
- Stuart Chng
- Feb 14
- 6 min read
Periods of uncertainty come in many forms—economic slowdowns, industry disruptions, job losses, rising costs, or unexpected personal setbacks. History has shown us that crises are cyclical, even if their triggers differ.
What remains constant is the need for resilience, flexibility, and prudent financial decision-making.
Property owners often sit on a valuable but underutilised resource: home equity. When managed wisely, it can provide breathing room, liquidity, and optionality during challenging times.
This article shares five practical strategies that property owners can consider to stabilise their finances and weather difficult periods more effectively.
If you're the type who likes just the 5 points briefly, without elaboration, this is it:
1. Equity loans
2. Refinancing and/or stretching your loan tenure
3. Mortgage deferment schemes
4. TDSR Waiver for properties with <50% loans
5. Sell and downgrade or rent temporarily
Otherwise, read on for an explanation of each.
1. Using Equity Loans to Improve Cash Flow
One of the most common ways property owners access liquidity is by unlocking equity from their properties.
Private and commercial property owners who still have income or sufficient assets may qualify for equity loans — also known as term loans—at interest rates comparable to mortgage loans.
This option is especially useful for:
Business owners facing temporary revenue dips
Individuals needing short-term cash buffers
Those consolidating higher-interest debts
While equity loans increase total loan exposure and monthly instalments, the lump-sum cash can ease immediate financial pressure and help stabilise household finances.
Do note:
CPF funds cannot be used to service equity loan instalments
Repayments must be made in cash
HDB flats are not eligible for equity loans under current regulations
Historically, property-backed loans are also less prone to sudden margin calls compared to other asset classes, providing relatively more stability during market volatility.
2. Refinancing and Extending Loan Tenure
Lower interest rate environments often present opportunities for homeowners to reduce monthly obligations.
Refinancing your mortgage to a lower rate—if you are not locked into a penalty period—can lead to meaningful savings. Even borrowers within lock-in periods may find banks willing to offer flexibility during widespread economic stress.
In fact, just this afternoon, one of my colleagues shared a story about his client, who was still under a locked-in package, getting a call from DBS, to refinance his loan to lower rates with no penalties.
In today's circumstances, there may be leeway granted so give your bank a call anyway if you’re currently serving your locked-in period.
You have nothing to lose and the banks might just be willing to waive the penalty to do their part to keep markets stable. In times like this, new rules are made on the go and I won't be surprised if banks do so.
In addition to refinancing, homeowners can also extend their loan tenure. Mortgage loans can typically be stretched up to:
Age 75 of the borrower, or
A maximum of 35 years
The upside is that it reduces your monthly mortgage installments until you are financially more comfortable to reduce the tenure or do partial repayments. The downside is this increases your interest paid over the long term.
Another enhanced possibility is to do the above and gear up (take an equity loan) at the same time.
This achieves the effect of lowering your interest rates, lowering your monthly installments and provide you with a lump sum of cash to weather storms.
3. Exploring Mortgage Deferment Options
During periods of financial strain, mortgage deferment schemes can offer temporary relief.
Banks may allow borrowers to:
Defer principal repayments
Pay interest only
Defer both principal and interest for a defined period
Such options are particularly helpful for those facing short-term income disruptions but who expect their situation to improve.
Eligibility criteria and terms vary, but deferment can help prevent cash flow issues from escalating into long-term financial stress. Always clarify repayment structures post-deferment to avoid surprises later.
4. Leveraging TDSR Waivers for Low-Leverage Properties
A lesser-known option available to certain homeowners is the TDSR exemption for properties with outstanding loans below 50% of the property’s value.
This regulatory relaxation allows eligible owners to:
Take equity loans up to 50% loan-to-value
Bypass strict income assessment requirements
Avoid the need for guarantors or asset pledging
This policy was originally introduced to help retirees and long-term homeowners monetise their properties responsibly, but it remains a valuable option for owners with low leverage seeking liquidity.
5. Selling, Downsizing, or Renting as a Strategic Reset
When cash flow challenges persist, restructuring housing arrangements may be a pragmatic move.
Options include:
Selling and downgrading to a lower-cost property
Renting temporarily while preserving capital
Renting out spare rooms or the entire unit and relocating to a cheaper alternative
Old HDB flats can range from $100K - $200K and can be a temporary way to tide over your challenges and free up funds for debts or cash flow.
If buying a home after selling isn’t possible, there is no shame in renting for the time being until your finances improve.
Alternatively, you may rent out spare rooms or rent out your entire apartment and rent a cheaper place temporarily to generate more cash flow.
In certain market conditions, renting can be more cost-effective than ownership, allowing families to remain solvent and flexible.
Downsizing is not a failure—it is a strategic reset that preserves long-term financial health and opens the door for future re-entry when conditions improve.
Final Thoughts
In uncertain times, liquidity is leverage, cash is king.
Properties are more than just homes or investments—they can serve as financial buffers when managed prudently. The key is understanding your options early and acting before stress turns into crisis.
Every situation is unique. If you or someone you know is navigating financial difficulty and unsure of the next step, professional guidance can help clarify choices and avoid costly mistakes.
If this article was helpful, feel free to share it with others who may benefit from these insights. Sometimes, the right information at the right time can make all the difference.
Be sure to check out how you can remove all the guesswork from property investing using our proprietary new app here.
Wishing you all the best in navigating through the potentially choppy waters ahead.
May we all emerge unscathed and safe. #SGUnited
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Stuart Chng is the Managing Partner of Navis and Chief Agency District Director at Huttons and the co-creator of Navis Atlas and PrimeKey Analysis.
He adores music and can play a few instruments decently without upsetting his neighbours. When not doing so, he enjoys pillow fighting with his son and coming up with silly puns which barely amuses his wife.
Professionally, he is a licensed real estate agent, an avid stocks, options and real estate investor, business owner, team leader, speaker and columnist for several property newsletters and blogs and is often quoted in media interviews on 938FM, Channel 8, PropertyReport, PropertyGuru and other publications.
Throughout his career, he has helped many clients grow their wealth through selecting great property investments and managing their portfolios actively. Read his clients' reviews here.
Stuart has also coached many top million dollar producing agents from different real estate agencies in Singapore. Read his agents' reviews here.
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