Renovation loans

Planning on carrying out some home renovations? Looking for a way to finance it? A renovation loan is an afforable way to get the work done and spread the cost at a low interest rate. Compare your options and apply online.

By   |   Verified by Kwok Zhong Li   |   Updated 27 Mar 2023

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Comparing renovation loans for over months

HSBC Personal Line of Credit

On website

HSBC Personal Line of Credit

Interest rate

From 4.00% (personalised)

Effective interest rate

From 7.50% (personalised)

Repayment period

3 years

Application fee

$0.00

Monthly repayment

$295.24

Total repayment

$10,628.64

Highlights

  • Get extra cash of up to 8X your monthly incomeGet extra cash of up to 8X your monthly income View Personal Line of Credit page
  • Low prevailing interest rates from 12% per annum
  • Flexible repayments, and pay only for what you use

Bank promo

  • Get cashback of up to S$3,000 and enjoy a 4% p.a. interest rate (EIR 7.5% p.a.) with no fee.

Pros

  • Get promotional interest rates and earn cashback when you meet the criteria.
  • Fixed monthly repayments with a choice of tenor between 1 and 7 years.
  • Quick decision.
  • Borrow as low as $1,000.

Cons

  • You will be charged an overdue interest of 2.5% plus prevailing interest if you miss your payment.
Standard Chartered CashOne

On website

Standard Chartered CashOne

Interest rate

From 3.48% (personalised)

Effective interest rate

From 6.95% (personalised)

Repayment period

3 years

Application fee

$199.00

Monthly repayment

$298.76

Total repayment

$10,755.36

Highlights

  • Earn cashback when you apply for a Personal Loan.
  • Enjoy competitive interest rates starting from 3.48% p.a.
  • Get your cash disbursed within 15 minutes of approval.

Bank promo

  • Enjoy cashback on the first 2 months interest upon approval. Terms and Conditions apply

Pros

  • Borrow as low as S1,000 and up to S$200,000.
  • Flexible repayment loan tenure from 1 to 5 years
  • Receive up to S$200 cashback for every successful referral. Valid until 31 December 2023.

Cons

  • There is a first-year annual fee of S$199.
OCBC Cash-on-Instalments

On website

OCBC Cash-on-Instalments

Interest rate

From 3.50% (personalised)

Effective interest rate

From 6.96% (personalised)

Repayment period

3 years

Application fee

$100.00

Monthly repayment

$306.94

Total repayment

$11,049.84

Highlights

  • Turn unused credit limit into cash, without the need for additional income documents.
  • Enjoy extra cash from interest rates as low as 3.50% p.a. (EIR 6.96% p.a.).
  • Manage your finances with fixed repayment with periods ranging from 1 to 5 years.

Bank promo

  • Receive up to $3,888 cashback when you apply for OCBC Cash-on-Instalments. Terms and Conditions apply.

Pros

  • Earn a generous amount of cashback when you meet the criteria.
  • Minimum loan amount is S$1,000.
  • Easy and fast application process.

Cons

  • There is a processing fee which is 1% of the approved loan amount.

Learn about renovation loans

Find out what you need to know about financing a project with a home renovation loan.

  • FAQs

Can a renovation loan be used for any type of renovation work?

No. There are limits on the type of renovation you can fund with a renovation loan. You can only use it for major projects, such as:

  • Electrical works and wiring
  • Carpentry, installing cabinets
  • Tiling and flooring
  • Painting and redecorating
  • Basic bathroom fittings
  • Structural modifications
  • External work such as fencing or roofing

The lender may visit the site during or after the completion of works, to make sure that the loan is being used for the stated purpose.

You can’t use any part of the renovation personal loan to buy furniture or appliances. Apply for a standard personal loan if you need cash to buy these.

Can I get a renovation loan if I’m a foreigner?

No. Renovation loans are intended for Singapore citizens and permanent residents only. Foreigners can consider applying for a standard personal loan to cover the cost of renovations.

Does it matter which contractor I engage to do the renovation work?

If you own an HDB flat you will need to use one of the HDB licensed renovation contractors listed in the Directory of renovation Contractors (DRC) on the HDB website. Specific types of renovation will also require different types of licensing for the contractor. For example, electrical installations can only be carried out by Energy Market Authority licensed contractors.

How is the loan cash disbursed with a renovation loan?

Unlike a personal loan for a non-specific purpose, the cash borrowed using a renovation loan will not be deposited into your personal bank account. Instead, the lender will make either a single upfront payment, or a series of payments, to the contractor you have chosen to carry out the renovation work.

How much can I borrow with a renovation loan?

If your credit score is OK you can usually borrow up to six times your monthly salary, sometimes more. You’ll need to have a minimum income of at least $24,000 and possibly $30,000 per year, depending on the lender.

What documentation will I need when applying for a renovation loan?

In addition to the standard documentation for any type of personal loan (proof of identity, income and residential address) you will also need to prove that you (or in some cases a close family member) own the property (for example with a copy of an HDB sales order) and also provide an invoice or cost quotation from your approved contractor.

What interest rate types are available for a renovation loan?

You can usually choose between a flat interest rate or a monthly rest interest rate.

With a flat interest rate, the total interest payable at a fixed rate for the entire repayment period (loan tenure or loan tenor) is calculated in advance and added to the loan principal. The resulting amount is divided by the number of months in the repayment period, to arrive a fixed equal monthly repayment amount.

With a monthly rest interest rate, the rate is variable, and the interest charge for each month is calculated based on the outstanding amount of loan principal. You will be required to repay the interest and a portion of the principal every month.

A rest rate will usually work out to be less expensive in total than a flat rate, even when the flat interest rate is lower than the rest interest rate.

What is a renovation loan?

As the name implies, it’s a special type of personal loan obtainable from banks, specifically for the purpose of renovating or remodelling your home. You may have used all your available savings for the deposit on your home, so a renovation loan could mean the difference between getting your property renovated now or having to wait for years.

What is the repayment period (loan tenure or loan tenor) for a renovation loan?

Available repayment periods are usually between one and five years.

Why can’t I just apply for a standard personal loan in stead of a renovation loan?

Standard personal loans tend to have higher interest rates applied to them because the lender does not know how you are going to use the money, and regards the loan as more financially risky. Anyone applying for a renovation loan must first prove that they own a home, or that a family member owns the home, and home owners are also considered a safer bet.

So, while you can of course fund your renovations with a standard personal loan, a renovation loan will cost you less.