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Renovation Loans in Singapore (2022)

If you’re looking to make much-needed renovations or just want to spruce up your property, you might want to consider a renovation loan.

Compare loans to fund your next renovation

1 - 7 of 7
Name Product Interest Rate From Loan Amount Processing Fee
Apply for a Personal Loan with Lendela

EIR: 6.5%

$1,000 – $200,000
Receive a customised personal loan that meets your financial needs.
Citi Quick Cash Loan

EIR: 6.5%

$1,000 – Up to 4x your monthly salary
Enjoy interest rates as low as 3.45% p.a. (EIR 6.5% p.a.) & up to 5 years loan tenure. T&Cs apply.
HSBC Personal Instalment Loan

EIR: 6%

$1,000 – $200,000
Apply online and get up to $100 cashback and up to 1% cashback on loan amount upon loan approval. Valid till 31 December 2022. T&Cs apply.
Standard Chartered CashOne Personal Loan

EIR: 6.95%

$1,000 – Up to 4x your monthly salary, subject to a cap of $250,000
Get up to $3,100 cashback and Interest Rate as low as 3.48% p.a. (EIR 6.95% p.a.). T&Cs apply. Valid till 31 December 2022.
UOB Personal Loan

EIR: 6.36%

$1,000 – Up to 95% of your available credit limit
Get up to $3,288 cashback if you choose a loan of $15,000 or more with a term between two and five years. This online offer ends on 31 December 2022.
DBS Personal Loan

EIR: 5.79%

$500 – Up to 10x your monthly salary
1% processing fee
Apply online using promo code 'POSBPL' and get up to 2% cashback on your approved loan with an interest rate from 2.88% p.a. (EIR 5.79% p.a), plus a 1% processing fee. Valid until 31 December 2022.
POSB Personal Loan

EIR: 5.79%

$500 – Up to 10x your monthly salary
1% processing fee
Enjoy a fast approvals service and an interest rate starting at 2.88% p.a. (EIR 5.79% p.a), plus a 1% processing fee. Valid until 31 December 2022.

Compare up to 4 providers

Your home is your castle, so it’s natural that you’d want to keep it in top condition. Unfortunately, housing upkeep or improvement can get pretty costly. This is where a renovation loan comes in handy.

If you’re looking to add value to your house or do some repairs, you have a few financing options you can consider.

What is a renovation loan?

A renovation loan is a type of personal loan that may be used specifically for home improvement works. Unlike standard personal loans, renovation loans tend to offer lower interest rates and shorter loan terms of up to 5 years.

What can I use a renovation loan for?

  • Painting works
  • Floor and tiling services
  • Relocating or modifying laundry space
  • Carpentry work
  • Electrical wiring
  • Home aesthetic improvement services
  • Bathroom fitting
  • Building or improving outdoor spaces
  • Adding indoor storage space
  • Experiment with new furniture layouts
  • Kitchen revamps for better safety and traffic flow
  • Improvements to heating and cooling systems
  • Installing solar or energy-efficient systems

What can’t I use a renovation loan for?

In general, a renovation loan may not be used for buying new furniture, purchasing decorative pieces, or any other non-renovation-related costs.

What types of renovation loans are available?

Renovation loans may be flat-rate of monthly rest loans. Flat rate renovation loans come with fixed rates. On the other hand, monthly rest renovation loans have rates that vary across months but generally could amount to lower costs.

How to choose a renovation loan

Renovation loans have a few common features that you can compare in order to decide which renovation loan is best for you.

  • Loan type. The type of loan you decide to go with should meet your needs and situation. For example, if you have a high-interest rate on your home loan, you may want to opt for a renovation loan with a lower rate rather than adding on to your mortgage.
  • Loan features. Some loans are specifically designed for renovation purposes and come with flexible features, so you should consider loans with features that best meet your renovation needs.
  • Loan costs. Renovation loan costs generally include processing fees, late payment fees, early repayment fees and cancellation fees. Compare these costs across providers to get the best deal.
  • Repayment options. You should ensure the lender offers repayment options which suit your desired payment frequency and income. For instance, if you are paid monthly, you may want to opt for a lender who will let you make monthly repayments.
  • Flexibility and extra features. If you are looking for any additional features that are being offered by other lenders, choose a loan that will give you this flexibility.

Things to consider before taking out a renovation loan

Before taking out a loan to cover the cost of your repayments, it’s important to consider a few things:

  • Can you afford the repayments?

To calculate the cost of your repayments, you not only need to consider the interest rate you will be charged with the loan, but also any ongoing fees or charges. Look at how long you are taking the loan out for, the repayment frequency you have chosen, any monthly or annual fees and the rate you will be charged. This will give you an idea of the true cost of the loan and your repayments.

  • How flexible is the loan?

Flexibility is another important consideration. Renovation loan terms are generally between 1 and 7 years, and as this is a significant amount of time you want to ensure that the loan can be accommodating to any change in your circumstances. Look out for things such as being able to make additional repayments, the ability to close the loan early or to change the loan terms.

  • Can you use CPF to cover your loan?

If you had chosen the Optional Component Scheme when applying for a Build To Order HDB flat, you may use your CPF to cover your Optional Component Scheme costs.

  • Have you applied for the right amount?

This is an important question, not only because you could borrow too little money, but also because you could borrow too much. The principal amount you borrow from the lender will affect your interest and could cost you if you calculate the loan amount incorrectly. Do note that the minimum amount you may borrow with a renovation loan is $5,000. The maximum amount is 6 times your monthly income or $30,000, depending on which is lower.

How to apply for a renovation loan

To apply for a renovation loan you may compare your options using the table above and click the Go to site button if you find a loan you want to apply for. This will take you through to the lender’s website where you can fill out an online application form.

To take out a personal loan you will generally need to:

  • Be between the ages of 21 and 65
  • Be a citizen or permanent resident of Singapore
  • Minimum income of $24,000 per annum
  • Be the property owner or an immediate family member with the owner’s consent
  • Depending on the lender you will most likely need to have a good credit rating

Application details

  • You will need to provide your name, address and proof of your identity
  • You will also need to provide details of your income, your employer’s name and contact details, as well as information regarding your assets, debts and liabilities
  • You will need to provide a quotation from your contractor and proof of ownership.

Once your application has been approved, funds may be disbursed directly to your renovation contractors. Do note that your lender may request for site visits in order to ensure that your loan is being used for renovations only.

Tips to make your home renovation pay off

Having a successful home renovation ultimately comes down to sticking to your budget and achieving your goals. Here are some tips to get the most out of your home renovation.

  • Add value through creativity. If you’re looking to renovate your home before selling or renting it, it’s essential to use renovation as a value-adding tool. Homebuyers pay particular attention to a home’s bathrooms and kitchen, and without spending too much, you can transform a seemingly run-down bathroom or kitchen. When it comes to making cosmetic renovations, it is best to limit to changes that are in plain view.
  • Take up a renovation loan with your home loan provider. Home loan providers, such as Maybank and POSB, often offer exclusive interest rate deals when you take up a renovation loan with them, on top of your existing home loan.
  • Consider DIY. Undertaking renovations the DIY way can help keep costs in check, but make sure you have access to the right tools as well as the required skills.
  • Think long-term. This is particularly important if you’re making changes to the house you plan to continue living in, simply because you’re the one who’ll benefit. Energy-efficient additions are a definite plus, and by opting to go the green way, you may also qualify for exclusive rebates.

Compare Home Assistance plans

1 - 3 of 3
Name Product Price Starts From Home Multi-Appliance Assistance Data Recovery 24 Hour Emergency Home Assistance
Allianz Assistance Easy Home Gold
Up to 2 call-outs
Up to 1 device
Up to 4 call-outs
Allianz Assistance Easy Home Silver
Up to 1 call-out
Up to 4 call-outs
Allianz Assistance Easy Home Bronze
Up to 4 call-outs

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