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Your Guide to Find the Best Home Renovation Loans in Singapore

What To Do If You Run Out Of Money During Renovations
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Buying your very own landed property is probably one of everyone’s biggest dreams to tick off their achievement list. There is nothing like knowing you are coming back to a place you’ve worked hard for and bought with your own hard-earned money.

With the relief that comes with settling the down payment for your home, there comes other worries and pressure of a probability of home renovations. Renovation cost Singapore can be expensive. One might have spent a fortune of their savings to afford the home or any property they dreamt of. Hence, there will be a need for financial aid, and this is precisely where a home renovation loan fits right in.

What is a Home Renovation Loan?

As the name accurately suggests, a renovation loan is a type of loan you apply from lenders or banks that would help you pay the cost of home renovation, whether it be repairing or enhancements you want or your need for your house.

Commonly, based on the terms and conditions of money lenders and banks, a renovation loan Singapore can be used to help you cover the cost of heating and cooling systems, roof improvements, mold remediation, and also kitchen and bathrooms makeover.

In Singapore, DBS renovation projects for an apartment may amount from $10,000 up to $100,000. It varies from your customization to your property. OCBC renovation loans and DBS renovation loans are popular ones in Singapore.

It is undeniable that a renovation loan has helped several homeowners out there in making their dream home design a success. With different T&C from different money lenders and banks, clients can bind with a contract of repayment for up to 5 years.

Why is Home Renovation Loan Necessary?

Your own home is one of the only places that is worth investing in. It is a safe space whereby you keep your loved ones secure, your wealth well-kept, and your quality time spent. A house makeover in fixing what is damaged and boosting amenities and designs of your house is worth its weight in gold.

Since it is a place where you have emotional and sentimental attachments, you can have the bliss of relaxation with a renovated house, according to your preferences.
It is worry-free because you can find a deal for repayment for up to 5 years’ time.

What is the Eligibility for a Renovation Loan in Singapore?

Man and Ipad calculating renovation cost

The total interest rate of a Singapore renovation loan is not as steep as personal loans’ interest. Home renovation loan interest is more affordable. With that said, below are the criteria one needs to meet to be eligible to apply for it.

  1. You must be 21 years and older.
  2. You must be a permanent resident or a local Singaporean.
  3. You must be the owner of the property being renovated.
  4. It would help if you attained the minimum income limit for the loan.

How to Apply for a Renovation Loan?

Loan applicants may send their application for their renovation home loan to the respective websites of the chosen lender. Usually, lenders and banks provide a hassle-free application process online for their loan customers.

Bear in mind that you should only apply to a licensed money lender Singapore or bank for the loan. This is to ensure that your rights to keeping your confidential information safe are legally practiced.

Not making a wise and informed decision when applying for your renovation may resort to you in being trapped in a loan shark’s scam. Not only are they illegal, but you will also be likely to be charged with a ridiculous loan interest rate.

Thus, you will need the following documents when applying:

  • Identity card/NRIC
  • Proof of Residence (current utility bill, a letter addressed to you or tenancy agreement)
  • Proof of employment (certificate of employment or recent 3 months’ payslip)
  • SingPass (to log into your CPF, HDB, IRAS website)
  • Copy of the “Option to Purchase” (OTP) of the home you are renovating
  • Invoice from your renovation vendor

How Much Can One Borrow When Applying for a Home or DBS Renovation Loan?

Generally, loan customers are expected to earn between a minimum of $24,000 to $30,000 annually to be able to apply for the loan. Also, applicants may only take up to a maximum of six months of their monthly income, either alone or have been combined with a spouse equivalent to $30,000, whichever is lower.

Worth to note that if, in any case, you are renovating more than quoted in your contract with your creditor, the remaining cost of the enhancements will not be covered by the loan amount.

House Renovation Loan vs Personal Loan

In a circumstance in which you intend to apply for a loan solely to cover the cost for your renovation, the home renovation loan itself is always a better, safer, and cheaper choice than a personal loan.

While it can be argued that personal loans are incredibly similar, in the application process, the purpose of applying and customers’ credit risk will be inspected. Hence, in securing customers’ approval, directly asking for a renovation loan is the way to go.

While banks will still offer loans to customers, they will impose a quite expensive interest rate because they do not know where and how the loan amount will be used.

Typically, personal loans will come with an effective total interest rate between 12% to 15%, and renovation loans only exert an interest rate at 6% to 7%. In a similar light, while we already know that money lender Singapore are a bit lenient when lending a loan, it is still preferred that they understand how their customers will be putting the loan amount to use.

Check out here for the Ultimate Guide to borrowing from Licensed Money Lender in Singapore.

All in all, the specificity characteristics of a renovation loan helps customers in getting lower interest rates. With the flexible T&C of a renovation loan, customers are also eligible to apply for a higher loan amount in bearing the overall costs.

Things to Consider Before Getting a Renovation Loan

planning the home renovation cost

With that said, these are the essential things that applicants should consider before getting a renovation loan.

  • Considering Other Sources of Funds Before Applying for a Loan.

Before entirely making yourself ready to commit to a loan, try your luck with asking for some funds through family and friends. As awkward as it would sound, we will never know the opportunities that are set for us until we try to venture out. By borrowing from friends and family, you get to secure repayment without thinking of the extra factors such as repayment tenure, interest rates, and process fees.

However, even with getting financing through those close to you, a properly managed, planned, and coherent budgeting plan is still very much needed. This is so that they will not second-guess nor hesitate with your ability to repay.

It is also not only a gesture that shows respect and responsibility. It is useful to give yourself an idea of the amount you will be indebted to and commit to repaying for a specific time.

  • Checking Loan Comparison Websites

It could be overwhelming to check all of the T&C of different creditors one by one. It would be such a hassle in noting down every single detail.

Hence, loan comparison websites will come in handy. Websites just like Loan Advisor deliver just precisely what one needs: lenders’ comparisons.

Their comparison comprises loan amounts you can apply, different terms, and conditions set by different lenders. They also state the needed particulars for you to determine which would work best for your needs.

  • Checking With Your Existing Home Loan Provider for Better Rates for the Renovation Loan

In some cases, some lenders would allow you to take a second mortgage loan, such as a home equity loan, also known as a renovation loan. This way, you could check if they would offer a more flexible T&C since you are already tied to a repayment term. Also, some lenders would permit lower rates for you since they consider it a ‘safe investment’ because it is usually counted as a secured loan.

How to Get the Most Out of Your Renovation Loan?

  1. Plan, plan, and plan. Customize and draft your home’s design to get an overall idea of a critical area that needs fixing immediately or what does not. Seek help from your family and friends who have had some experiences being first-time homeowners that are to be renovated.
  2. Read, research, ask around. Ask around for the best deal that other people have gotten from the best renovation contractor. Get a few quotes from a few different contractors that you have shortlisted, compare, and contrast.
  3. Not everything for your home needs an extravagant amount of money to be fixed—lookup for subcontractors in helping you repair areas with minimal renovations.


With all of the basics we have laid down for your renovation loan, you can see a repetitive pattern of us saying the importance of comparing lenders, comparing contractors, comparing different terms and conditions, comparing interest rates, etc.

Committing to a high loan amount requires extensive reading, research, and comparison. In doing so, we would highly recommend Loan Advisor as one of the best loan comparison sites in Singapore. You can get free quotes to decide which deal will suit you the most.

Visit Loan Advisor now, check and compare rates, and get ready to get your dream house!

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