Renovation Loan – Loan Advisor: Compare Loans in Singapore

How to Apply Today?

Here at Loan Advisor, we hate hassle – which is why we want to make your renovation loan matchmaking experience as straightforward as possible. Find the most competent renovation loan Singapore to suit you in three easy steps:

Step 1:
Submit a Renovation Loan Enquiry Form to Loan Advisor

Simply share your expectations of the loan amount, tenor, and interest rates in a simple form, click submit then sit back and relax.

Step 2:
Receive and compare up to three loan offers

Within five minutes or less, we’ll scan suitable loan offers and amounts from more than 150 loan providers in Singapore and send you the three best quotes.

Step 3:
Drop by to your prefer loan providers office to sign the paperwork

Select your perfect match and arrange a quick slot with the lender to finalize and sign any necessary legal documents.

Renovation Loan Key Features

1. What is a renovation loan?

A Renovation Loan pertains to the type of loan that covers the costs of renovating a “fixer-upper”, or such renovations that come with purchasing a house. While it can also be wrapped into a mortgage loan, a home renovation loan is the perfect option if you want to fix something like heating and cooling systems, roofing improvements, mold remediation, kitchen and bathrooms projects.

In Singapore, whole apartment makeovers can easily amount from $10,000 to $100,000 depending on how much change you want to accomplish.

Fortunately, if you’re planning on some renovations, loan options offered by both moneylenders and banks in Singapore offer renovation loan programs, though the terms and conditions vary. Some of the most popular loans are the DBS renovation loan and Maybank renovation loan.

These loans can be of assistance and give homeowners the option to help pay for their home’s renovation costs within 2 years, 3 years, or even 5 years or more depending on their preferences. You have options on determining which lender has the best renovation loan terms for you.

2. What can you use a renovation loan for?

While it’s tempting to use a renovation loan to pay off your mortgage or home loan, there are several things you can’t do with it like pay off your home loan, or buy new furniture or appliances with it.

For those, you should consider taking up a personal loan in which the loan amount can be used in accordance with your needs and wants such as buying a washing machine, installing curtains, anng jobs

Carpentry
Bathroom renovations
Wall and floor painting or tiling
External improvements like roofs or fences

3. Who is eligible to apply?

Total interest rates for renovation loans are very low as compared to a personal loan. As a result, you need to fulfill certain criteria to get one for your home renovation.

You must be 21 years old and be either a Singaporean or a permanent resident
You need to be the owner of the property being renovated
You are within the minimum income threshold for this loan

These criteria exist because all banks and moneylenders would need you to prove your ownership of the property, your monthly income documents, and other related documentation such as your NRIC and CPF statements. These documentations will determine the most suitable renovation loan amount for your needs.

Also the lenders would differ with regards to the income requirement and rates offered. It is always wise to shop around and check their rates and terms before you apply for what you think is the best renovation loan and the loan amount for your needs with a lender.

Simple, straightforward and hassle-free

Finding the fittest renovation loan with the lowest processing fees and loan interest rates couldn’t be easier. Try out our handy Loan Calculator to see how much you could borrow – and at what interest rate.

Better yet, follow our quick and easy three-step loan application process today and claim your personal cash ASAP. It really is as simple as that.

Factors to Consider When Choosing Your Renovation Loans

There are several factors to consider when choosing your renovation loans. Some of these factors are:

1. Loan Amount

The first thing you need to do is find out which parts of your home need a renovation and how much is your budget. As we’ve mentioned before, HDB flat owners tend to spend around $30,000 to $60,000 for their renovations on average, so the amount you need to borrow would need to cover all your essentials.

In addition, renovation loans in Singapore are limited by the amount you are able to loan and if your plans have exceeded the amount you have budgeted for or are able to take out, you will have to pay the remaining amount out of your pocket. So plan ahead to keep your budget manageable.

2. Interest Rate

Your loan amount is not the only thing you should consider when looking for the best deals. The maximum loan amount with the interest rate and fees total should be considered as you would not only be paying for the amount you have taken out, you will also be paying for the interest rate and amount accrued.

Therefore, you need to know how much interest you will be charged in total, and if the rates are done monthly or yearly. This would allow you to know how much you will be paying in total instead of just the amount you have borrowed.

3. Fees

Some unscrupulous lenders have also added fees that are not spoken of until the signing of the contract is over. Others have made their loan officers gloss over their fee rates, downplaying the amount you would be paying beforehand.

It is in your best interest to seek clarification on all the fees associated with the contract and find a lender that offers you the lowest possible rates, as the rates would determine your total amount to be paid at the end of the day.

4. Loan Providers

Your loan provider could perhaps be the most important factor for your consideration. A decent loan provider would be able to give you great interest rates, flexible repayment terms and low fees for your loans.

A badly chosen loan provider would instead cost you more as the lender would be tacking on hidden fees, charges and other rates not mentioned prior to the signing of your loan contract.

You should only choose a moneylender that is licensed, and registered with the Registry of Moneylenders. If a lender is offering you rates and terms that look too good to be true, it probably is. Do your due diligence, research your loan provider carefully and find out if they are legit or loan sharks masquerading as legal lenders.

If you are unsure, check out some of our best licensed moneylenders around Singapore. These lenders are proven by many others to be reliable, trustworthy, and most importantly, licensed.

The Biggest Benefits of Using Loan Advisor

Loan Advisor takes the pain out of shopping around for the best loans with low rates, fees, and flexible tenors. With our three-step search and application process you can:

Receive loan approval within five minutes or less

We help you to bypass lengthy bank checks by bringing you amazing deals from licensed money lenders with faster approval processes.

Save valuable time online

Our service will only ever connect you with trusted loans from respected money lenders that are fully licensed by the Ministry of Law. We search and compare deals from more than 150 tried and tested lenders.

Secure a deal with a top licensed money lender

Avoid the hassle of loan applications

Let’s face it, looking for loans during periods of financial difficulty is stressful and filling in endless applications is annoying. Just tell Loan Advisor what amount you need, and we’ll send you three suitable, no-obligation quotes.

Why Choose Loan Advisor?

Loan Advisor is a completely free loan comparison and matchmaking service with an unrivaled reputation across Singapore. We empower busy borrowers to make better financial decisions quickly and efficiently. We do this by matching our customers to the best low-interest loans that meet their unique borrowing needs.

We firmly believe that taking out a loan should be as fast and straightforward as can be, which is why we compare loan quotes from not one, two, or three but 150+ licensed money lenders in Singapore to find the perfect loan to suit you.

Our reputation is second to none, with several five-star Google reviews from happy customers – and even more great reviews on our website. We’re the most trusted loan comparison site in Singapore.

Here at Loan Advisor, we have the knowledge, experience, and connections to put you in touch with the best loans Singapore has available. What’s more, we’ll handle your personal data with strict confidentiality and won’t charge you a cent for using our award-winning loan matchmaking service! So, what are you waiting for?

Find Your Perfect Renovation Loan Right Now

Great loan deals don’t last forever and aren’t always easy to find on your own – especially if you’re looking for the best interest rates. Why waste time scouring the web for suitable loans when Loan Advisor can compare the most solid renovation loans Singapore has to offer in the blink of an eye?

Renovation Loan FAQ

If you still have questions about renovation loans, Loan Advisor has the answers. Check out our helpful FAQs below.

How much can you borrow with a renovation loan?

Typically, a borrower needs to earn a minimum of $24,000 to $30,000 a year before they are eligible for a renovation loan. They can also only take up a maximum of six months of their monthly income, whether individual or combined income with a spouse that is amounting to $30,000, whichever is lower.

This means should a borrower decide to perform an extensive home renovation, the amount would only be enough to renovate a limited portion of the home and the rest must be paid out of their pocket.

What is the difference between Renovation Loans and Personal Loans?

If you need funds for your renovations, you will need to get an invoice from your vendors. The invoice must be signed by you and the vendors in order for us to proceed.

it is always wiser to choose renovation loans instead of personal loans. While a personal loan does the same job as that of renovation loans, banks and moneylenders will check a person’s credit risk and their intentions. With this, it is beneficial to use renovation invoices to secure the approval rate of the loan.

For many banks, the fact they will not be informed about where the loan amount will be used presents a high risk for them. They will still be open in offering personal loans, but it will have high total interest rates. While moneylenders are a bit lenient about this fact when they assess a person’s loan application, they do prefer knowing where the loan will be used.

On the other hand, renovation loans are very specific. Since the money lender or bank will know where you will use the loan amount, the loan they will give you has lower total interest rates. Normally, personal loans come with an effective total interest rate of 12 to 15% and for renovation loans, their total interest costs are lower at 6 to 7%.

Can I pay my Renovation Loan using CPF?

Unfortunately, No. Unlike the home down payment, your CPF cannot be used for your renovation loan. You will have to pay out of pocket for any renovation costs you incur.

How do you apply for a Renovation Loan?

These days, most loans can be applied online through the respective lenders’ websites. Their application processes are easy to navigate and would present no challenges for anyone who needs the loan.

However, before you apply, it is important for you to determine your needs carefully. Do you need an entire house makeover or just some rooms? Knowing this will enable your contractor to give you a good quote for the project to determine your loan amount.

Your contractor must also help you understand what you need during the renovations. The quote will give you an idea of how much you will spend on the renovations.

Finally, you should apply only to a licensed moneylender or bank for the loan. When you apply for a renovation loan, make sure you only borrow from a licensed moneylender to ensure that your loans are safe and worry-free. Their total interest payment will not burden you in the repayment period, unlike predatory loan sharks who will drag you into debt and ruin.

What documents are needed to apply for a Renovation Loan?

You will need the following documents

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

Get the Best Renovation Loan Offer in Singapore 2023!