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Renovation Loan in Singapore: Which Is the Best? (2022)

PropertyGuru Editorial Team
Renovation Loan in Singapore: Which Is the Best? (2022)
In what case would you take a renovation loan in Singapore? Picture this.
Imagine: you’ve picked the best mortgage loan for your home, the next item on your list is renovation. By this time you would perhaps be feeling the financial pinch already and may have withdrawn some of your CPF for the downpayment of your new home.
So how do you fund the cost of renovations for your new property that can easily range between $10,000 and $100,000? Enter renovation loans.
In Singapore, banks provide home renovation loans. The interest rates for a renovation loan is by far lower than that of a personal loan, the tenures are shorter at a maximum of only 5 years, with a general maximum loan amount of 6 times your monthly wages and a cap of $30,000.
With the perks provided, there are of course criteria and guidelines to be followed.

Home Renovation Loans in Singapore (2022 Update): Which Is the Best Renovation Loan?

Here is a quick comparison of some of the renovation loan packages that are available in Singapore. This is based on a loan amount of $30,000 and a tenure of 3 years.
CIMB Renovation i-Financing
4.33%
$890.13
OCBC Eco-care Renovation Loan Monthly Rest
3.98%
$885.45
OCBC Renovation Loan Monthly Rest
4.18%
$888.12
Maybank Renovation Loan Monthly Rest
4.10%
$887.05
DBS Green Renovation Loan
3.88%
$881.46
DBS Renovation Loan
3.68%
$884.12

Renovation Loan Criteria in Singapore

In order to qualify for a renovation loan, a Singaporean bank will require the applicant to:
  • Own a property
  • Be a Singaporean Citizen or PR
  • Have a good credit score
  • Fulfil the minimum income requirement (bank dependent)
There are also limitations on what the loan can be used for, including:
  • Electrical works and wiring
  • Tiling, flooring and painting
  • Basic bathroom fittings
  • Property’s external compounds

Renovation Loan Singapore: Miscellaneous Fees

On top of the loan, be prepared to fork out more dough in the form of fees. There will be several fees to pay, such as the disbursement fees, processing fees, and if applicable, late payment fees.
The disbursement fees are usually 1% of your approved loan amount. On the occasion that the borrower incurs late payment fees, they will need to be prepared to be charged about 5.7% of their loan amount.
You can use a renovation loan calculator to work out the amount you need. You can also put in the legwork to enquire and compare renovation loans across the various banks in Singapore to determine the best renovation loan.

Before Taking a Renovation Loan in Singapore, Know Your Loan Quantum

The loan quantum is based on your household income, the margin of finance (otherwise known as the Loan-to-Value (LTV) ratio) and your Total Debt Service Ratio (TDSR)
Different banks have different qualifying factors, with the majority of the banks offering loans up to 6 times your monthly income.

Renovation Loan Singapore: Borrowing from Your Home Loan Provider

You can usually get a discount if you were to obtain your home renovation loan from the same bank that provided you with your home loan. Many of the websites such as POSB and OCBC, will in fact enquire if you have an existing home loan with them before they allow you to proceed to the calculation.

Taking a Personal Loan to Finance Your Home Renovation

Thinking of renovating your home and taking a personal loan instead? Browse and compare the various personal loans available in Singapore on Lendela, at no cost! Start by filling out your application here:
If you’re set on taking a renovation loan, check out the available home renovation loans you can take.

Renovation Loan Singapore: Comparing Home Renovation Loans

Let’s take a look at some of the home renovation loans in the market as of March 2022, based on a loan amount of $30,000 and a tenure of 3 years.

CIMB Renovation i-Financing

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
4.33%
Monthly instalment
$890.13
Total payable interest
$2,044.68
Processing fees
0% of approved loan amount

OCBC Eco-care Renovation Loan Monthly Rest

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
3.98%
Monthly instalment
$885.45
Total payable interest
$1,876.20
Processing fees
0% (but there is a 0.50% admin fee on loan amount charged)

OCBC Renovation Loan Monthly Rest

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
4.18%
Monthly instalment
$888.12
Total payable interest
$1,972.32
Processing fees
0% (but there is a 0.50% admin fee on loan amount charged)

Maybank Renovation Loan Monthly Rest

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
4.10%
Monthly instalment
$887.05
Total payable interest
$1,933.80
Processing fees
1.0% of the approved loan amount

DBS Green Renovation Loan

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
3.68%
Monthly instalment
$881.46
Total payable interest
$1,732.39
Processing fees
1% of the approved loan amount

DBS Renovation Loan

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
3.88%
Monthly instalment
$884.12
Total payable interest
$1,828.29
Processing fees
1% of the approved loan amount
This is another example of choosing your home renovation package carefully. As can be seen, DBS offers a package with the lowest interest rates and monthly instalments. But OCBC offers (perhaps?) the lowest processing fees. Calculations will need to be done in order to pick the best package.
Another thing to look out for is the freebies that the banks will throw your way. Take those into account, see if the freebies will help you lower your repayments. If they don’t, trade them away and bargain for a better deal.
Again, select the package that gives you the most value. Take into account all your other loans such as your education loan, mortgage loan and vehicle loan, and then try to keep your home renovation loan repayment to only 30% of your debt-to-income ratio.
Now all that’s left to do is to start renovating your home!
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More FAQs Related to Renovation Loans in Singapore

No, you cannot use your CPF savings to finance your renovation loan.

No, HDB provides housing loans, not renovation loans.

First, you will need to ensure that you have met the criteria for application. After which, you may apply for the loan online or at the bank by providing the necessary documents.

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