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Best Renovation Loans in Singapore: Which to Pick? (2023)

PropertyGuru Editorial Team
Best Renovation Loans in Singapore: Which to Pick? (2023)
In what case would you take a home renovation loan for your HDB flat in Singapore? Picture this: you’ve picked the best mortgage loan for your home, and 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 By this time you would perhaps be feeling the financial pinch already and may have withdrawn some of your CPF for the downpayment of your new home.
According to Qanvast, the median renovation costs for condos in 2023 range from $39,800 to $50,600 for a new condominium and $60,000 to $80,000 for a resale condominium. And for renovation costs for a BTO flat, expect to fork out between $49,500 to $62,800 for a 4-room flat.
So how do you fund the cost of your condo or HDB renovations? Enter home renovation loans. The interest rates for a renovation loan are by far lower than that of a personal loan. Also, 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.

Best Home Renovation Loans in Singapore in 2023

Here is a quick comparison of some of the best condo or HDB renovation loan packages that are available in Singapore. This is based on a minimum loan amount of $30,000 and a tenure of 3 years.
CIMB Renovation i-Financing
4.15%
$887.72
OCBC Eco-care Renovation Loan Monthly Rest
4.98%
$898.86
OCBC Renovation Loan Monthly Rest
5.08%
$900.20
Maybank Renovation Loan Monthly Rest
6.53%
$919.88
DBS Green Renovation Loan
4.68%
$894.82
DBS Renovation Loan
4.88%
$897.51
Standard Chartered CashOne (Renovation)
3.48%
$920.33

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 Singapore Citizen or PR
  • Have a good credit score
  • Fulfil the minimum income requirement (bank dependent)
There are also limitations on what your home renovation loan can be used for, including:
  • Electrical works and wiring
  • Tiling, flooring, and painting
  • Basic bathroom fittings
  • Property’s external compounds

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) limit and your Total Debt Service Ratio (TDSR).
Different banks have different qualifying factors, with the majority of the banks offering reno loans up to six times your monthly income.

Renovation Loan Singapore: Miscellaneous Fees

On top of the HDB reno loan or condo reno loan you will take, be prepared to fork out more dough in the form of fees. There will be several fees to pay, such as 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.

Taking a Personal Loan to Finance Your Condo or HDB Renovation Instead?

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

Renovation Loan Singapore: Comparing Condo/HDB Renovation Loans (2023)

Let’s take a look at some of the home renovation loans in the market as of 26 April 2023, 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.)
4.15%
Monthly instalment
$887.72
Total payable interest
$1,957.92
Processing fees
1.2% of the approved loan amount
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 55 years old, salaried or self-employed with a minimum annual income of $24,000.

OCBC Eco-care Renovation Loan Monthly Rest

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
4.98%
Monthly instalment
$898.86
Total payable interest
$2,358.96
Processing fees
0% (but there is a 0.50% admin fee on the loan amount charged)
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 59 years old, salaried or self-employed with a minimum annual income of $30,000.

OCBC Renovation Loan Monthly Rest

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
5.08%
Monthly instalment
$900.20
Total payable interest
$2,407.20
Processing fees
0% (but there is a 0.50% admin fee on the loan amount charged)
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 59 years old, salaried or self-employed with a minimum annual income of $30,000.

Maybank Renovation Loan Monthly Rest

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
6.53%
Monthly instalment
$919.88
Total payable interest
$3,115.68
Processing fees
1.25% of loan amount or a minimum $150; whichever is higher
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 55 years old, salaried or self-employed with a minimum annual income of $30,000.

DBS Green Renovation Loan

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
4.68%
Monthly instalment
$894.82
Total payable interest
$2,213.52
Processing fees
1% of the approved loan amount
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 65 years old, salaried or self-employed with a minimum annual income of $24,000.

DBS Renovation Loan

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
4.88%
Monthly instalment
$897.51
Total payable interest
$2,310.36
Processing fees
1% of the approved loan amount
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 65 years old, salaried or self-employed with a minimum annual income of $24,000.

Standard Chartered CashOne (Renovation)

Loan amount
$30,000, with a tenure of 3 years
Interest rate (p.a.)
3.48%
Monthly instalment
$920.33
Total payable interest
$3,132
Processing fees
None
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 65 years old, salaried, variable/commission-based employees, or self-employed with a minimum annual income of $20,000.

Who to Take a Renovation Loan from?

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.
This is another example of choosing your home renovation package carefully. When working out the math, consider interest rates, monthly instalments, and processing fees to pick the best package.
Another thing to look out for is the freebies that the banks might throw your way. Take those into account, and see if the freebies will help you lower your repayments and get the most value.
Do also take into account all your other loans (e.g. education loan, mortgage loan, vehicle loan, etc,) and 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 pick a loan and start renovating your home!
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Disclaimer: The information is provided for general information only. PropertyGuru Pte Ltd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

More FAQs About 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.

As with any loan, the cost to borrow will always be there through interest rates. The good thing about renovation loans is that the interest rates are significantly lower than a normal loan, making it not as costly an investment to take.&nbsp;</p> <!-- /wp:paragraph -->