10 Best Renovation Loans in Singapore | Best of Home 2023

Whether you’re renovating your dream home or purchase a resale apartment, this is the right article. It might be difficult to manage your own funds, but managing a couple’s finances is a different challenge. A home renovation loan can help you out financially in this situation, albeit you will have to pay back the interest accrued. Banks in Singapore provide loans for house renovations. The maximum loan term for a renovation loan is only five years, and the interest rates are significantly lower than those for personal loans. The maximum loan amount is often six times your monthly income, with a limit of $30,000. With an extensive variety of renovation loans in the market, which then are the best renovation loans in Singapore? In our Best of Mom series, we introduce the 10 Best Renovation Loans in Singapore, providing quality recommendations based on your lifestyle and budget needs. 

10 Best Renovation Loans in Singapore

1. OCBC Bank, cheaper fee than competitors with 0.5% administrative fee

The interest rates on OCBC’s renovation loans are lower (4.18%) than those of other Singaporean lenders. Additionally, it charges more on fees than its rivals. Due to these factors, house owners should consider the bank as a fallback option to other lenders for renovations. OCBC also provides renovation loans, with a lower income requirement than other banks of at least S$24,000 per year. The minimum loan amount is also lower (S$5,000), and loans are disbursed within 5 business days of approval. If you want to improve the sustainability and energy efficiency of your renovations, you may also choose OCBC’s Eco-Care Renovation Loan and benefit from promotional interest rates of just 3.98% annually.

2. POSB, cheaper for longer-term renovation loans

The interest rates on the 4 and 5-year renovation loans from DBS and POSB are the lowest among lenders at 3.88%. In contrast to many other banks, the banks also provide renovation loans to people with incomes as low as S$24,000. For DBS or POSB renovation loans, applicants must be Singaporean citizens or permanent residents between the ages of 21 and 65. Successful candidates must bring in at least $24,000 a year. The range of loan amounts is S$5,000 to S$30,000, or six times the monthly earnings, whichever is less. In addition, DBS and POSB charge only $5 in cashier fees and provide insurance coverage to borrowers in the event of death or long incapacity.

3. TCC Credit Co-operative, for lower income borrowers

Low-income borrowers may benefit from the loans provided by the nonprofit lending institution TCC Credit Cooperative Limited. Without additional surety, you can obtain an additional furnishing loan of up to $5,000. This is primarily due to their S$2,000 minimum monthly salary requirement, which is significantly lower than competitor banks‘ S$20,000 minimum annual income requirements. You must be a Singaporean citizen, be between the ages of 21 and 55, and make a minimum monthly basic salary of $2,000 in order to qualify for the renovation loan.

4. Maybank Singapore, lower interest rates to its existing home loan customers

The home renovation loans offered by Maybank are among of the finest for Singaporean homeowners. One of the lowest rates is offered by Maybank for terms of 4 or 5 years; it is 6.53% (Reno Loan Board rate less 4.32% p.a.) for new clients with a minimum tenure of 3 years. For people who want to make the smallest monthly payment possible or who are preparing to do significant or expensive home improvements, these lengthier terms are better. With terms ranging from 1 to 5 years, the bank charges rest rates of 3.88%. Therefore, Maybank renovation loans are appropriate for homeowners who have mortgage loans from the bank.

5. Soon Seng Credit, maximum loan amount of six times your monthly salary

Renovation loans with minimum requirements are available from Soon Seng Credit at competitive rates. In case you were wondering, the top banks in Singapore often provide personal loans starting at $20,000 or $30,000. Subject to approval, Soon Seng Credit provides loans with terms of up to 12 months, a simple interest rate range of 2.27% to 4% per month, and a maximum loan amount of six times your monthly salary. You must be between the ages of 21 and 65 and a Singaporean citizen or permanent resident. A minimum yearly salary of $24,000 is required of you. Usually, you can borrow a maximum of 6 times your monthly salary of $30,000 for a home renovation loan, whichever is lower.

6. 118 Credit, greater flexibility loan

A personal loan has greater flexibility than a loan for renovations, but these advantages come at a higher interest rate. 118 Credit maintains affordable interest rates for a home renovation loan because they want you to have the house of your dreams. You should make sure you are dedicated to renovation and have made up your mind before taking out a loan because this is a significant quantity of money. You must be a Singaporean citizen or lawful permanent resident, and you must be at least 21 years old.

7. CIMB, renovation loans with low fees

For long-term renovation loans or projects costing more than S$25,000, CIMB’s Renovation-i Financing renovation loan provides some of the best rates. Additionally, for homeowners in need of rapid cash, Renovation-i Financing promises some of the lowest effective interest rates and a 1-day turnaround time. The bank also has cheaper starting costs because there are no administration fees and only a 1% processing fee. Additionally, borrowers have the option of variable tenures for up to 5 years that are applicable to all varieties of completed or ongoing residential buildings.

8. Monetium Credit, for making your dream home real

You may turn your dreams into reality and turn a plain-looking property area into the most fantastic living place with the aid of a dependable Monetium Credit. You might have the flexibility to make any type of modifications with these urgent cash loans, including those in the areas of electrical, plumbing, wiring, floor installation, repainting, buying new furniture, renovating the kitchen and bathroom, as well as any other necessary changes. Please be aware that to qualify, you must be a Singaporean or a Permanent Resident of Singapore (PR) and at least 21 years old. Other criteria include documents like NRIC copies, evidence of property ownership, proof of income for both salaried and self-employed employees, and CPF statements/NOA.

9. Cash Direct, offers most affordable loan for most consumers

A renovation loan of S$30,000 might not be enough to pay the whole cost of a renovation for individuals looking to totally rebuild their property. It would be wise for these people to take into account a personal loan. However, those looking for a loan of up to S$30,000 would save money with renovation loans because they frequently have cheaper interest rates than personal loans. The renovation loan from Cash Direct provides you the greatest possibilities whether you want to give the existing property a fresh appearance or you already own a new house. You must be a Permanent Resident (PR) or a Singaporean who is 21 years of age or older to apply for the renovation loan with them.

10. Friday Finance, moneylender renovation loan for bad credit

Even if you have poor credit or a low income, Friday Finance is a moneylender that offers personal loans that you may use for improvements. Given that the maximum loan period is 18 months, these loans are a fantastic choice for those who wish to take out a short-term loan. Depending on their particular situation, customers will pay between one and three percent in interest each month. However, banks would be a better choice for long-term renovation loans because they normally charge 3-6% yearly. Customers who make more than S$20,000 annually may borrow up to 6 times their monthly income; otherwise, the loan amount is capped at S$3,000.

Above these places, we hope that our guide on the 10 Best Renovation Loans in Singapore will help you to choose where to loan for renovating your dream home. Please do share this along with your friends if you have found this useful. Do look forward to more buying guides that we will be releasing soon!