Renovation Loan

Please get the latest Renovation Loan interest rates for Singapore with Us.

With a renovation loan, you can finance everything from building a larger kitchen to giving your home a total makeover. See how renovation loans compare against other banks & apply instantly online.

Call: +65 8336 3133 or Email Contact@Frcapital.sg

SELECTED PARTNERS

Standard Chartered CashOne

3.48%

Interest Rate (p.a.)

0%

Processing Fee (approved loan)

0%

Admin Fee

S$391.33

Per Month

  • In 15 minutes, get your loan paid into your account!
  • Borrow up to 4x your monthly income, subject to a max loan amount of S$250,000
  • Enjoy interest rates from 3.48% p.a.!
  • Note that the rates provided to you are customised and might differ from what is displayed here.
  • Enjoy 0% interest rates for 1-year loan tenure, with 4.5% processing fees deducted from the total disbursed loan.

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Citizenship Status Singaporean / P.R. Citizenship Status
Age Requirement Age from 21 to 65 years
Employment Status Salaried Employee, Variable/Commission-based Employees, or Self Employed
Guarantor/Collateral N.A
Minimum Annual Income S$20,000
Principal Loan Amount S$20,000
Total Interest Payable S$2,197.60
Total Amount Payable S$22,197.60
Monthly Instalment S$369.96
Interest Rate (p.a.) 4.18%
Loan Tenure 5 years
RHB Renovation Loan Monthly Rest

4.18%

Interest Rate (p.a.)

1%

Processing Fee (approved loan)

0%

Admin Fee

S$369.96

Per Month

  • Customers of RHB Renovation Loan can take an extra furniture loan.
  • Borrow up to 6x your monthly salary

  • Loan tenure of up to 5 years

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Citizenship Status Singaporean / P.R. Citizenship Status
Age Requirement Age from 21 – 55 years old
Employment Status Salaried / Self Employed
Guarantor/Collateral N.A
Minimum Annual Income S$30,000
Principal Loan Amount S$20,000
Total Interest Payable S$2,197.60
Total Amount Payable S$22,197.60
Monthly Instalment S$369.96
Interest Rate (p.a.) 4.18%
Loan Tenure 5 years
OCBC Renovation Loan Monthly Rest

4.18%

Interest Rate (p.a.)

0%

Processing Fee (approved loan)

1.50%

Admin Fee

S$369.96

Per Month

  • The only bank in Singapore to allow the third-party borrower
  • Loan disbursed one working day after approval

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Citizenship Status Singaporean / P.R. Citizenship Status
Age Requirement Age from 21 – 59 years old
Employment Status Salaried / Self Employed
Guarantor/Collateral N.A
Minimum Annual Income S$24,000
Principal Loan Amount S$20,000
Total Interest Payable S$2,197.60
Total Amount Payable S$22,197.60
Monthly Instalment S$369.96
Interest Rate (p.a.) 4.18%
Loan Tenure 5 years
RHB Renovation Loan Flat Rate

2.98%

Interest Rate (p.a)

1%

Processing Fee (approved loan)

0%

Admin Fee

S$383

Per Month

  • Customers of RHB Renovation Loan can take an extra furniture loan.

  • Borrow up to 6x your monthly salary

  • Loan tenure of up to 5 years

See all details

Citizenship Status Singaporean / P.R. Citizenship Status
Age Requirement Age from 21 – 55 years old
Employment Status Salaried / Self Employed
Guarantor/Collateral N.A
Minimum Annual Income S$30,000
Principal Loan Amount S$20,000
Total Interest Payable S$2,980
Total Amount Payable S$22,980
Monthly Instalment S$383
Interest Rate (p.a.) 2.98%
Loan Tenure 5 years
Maybank Renovation Loan Monthly Rest
4.2%

Interest Rate (p.a)

0.75%

Processing Fee (approved loan)

0%

Admin Fee

S$370.14

Per Month

  • Borrow up to 6 times your monthly wage or less $30Borrow up to 6 times your monthly salary or less $30
  • Loan tenure of up to 5 years

  • Attractive interest rates

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Citizenship Status Singaporean / PR Citizen or PR
Age Requirement Age from 21 – 55 years old
Employment Status Salaried / Self Employed
Guarantor/Collateral N.A
Minimum Annual Income S$30,000
Principal Loan Amount S$20,000
Total Interest Payable S$2,208.40
Total Amount Payable S$22,208.40
Monthly Instalment S$370.14
Interest Rate (p.a.) 4.2%
Loan Tenure 5 years
CIMB Renovation-i Financing
4.2%

Interest Rate (p.a)

1%

Processing Fee (approved loan)

0%

Admin Fee

S$370.14

Per Month

  • Keep your monthly wages up to 6 times and lower S$30,000
  • Loan tenure of up to 5 years

  • Attractive interest rates

See all details

Citizenship Status Singaporean / P.R. Citizenship Status
Age Requirement Age from 21 – 55 years old
Employment Status Salaried / Self Employed
Guarantor/Collateral N.A
Minimum Annual Income S$24,000
Principal Loan Amount S$20,000
Total Interest Payable S$2,208.40
Total Amount Payable S$22,208.40
Monthly Instalment S$370.14
Interest Rate (p.a.) 4.2%
Loan Tenure 5 years

ONE APPLICATION – MULTIPLE RENOVATION LOAN OFFERS

4 simple steps to a great renovation loan in Singapore:

1. Apply online in a few minutes

2. Receive offers from multiple lenders

3. Compare offers and select online

4. Sign the agreement and get the money

FR Capital Renovation Loan Guide

Why a renovation loan?

Homeownership is an essential milestone in most people’s lives. This is not the end of the road, however. A couple of years after your purchase, the time may come when you’ll perhaps need to make specific improvements to your space. These improvements could be minor facelifts like retiling the floor and repainting the house, or they could be significant home renovations like adding another section to your house.

Now, significant renovations to your house can be costly, given the steep costs of materials and labour. Although it is a good idea to dig into your savings for minor repairs and facelifts, significant home improvements could erode a considerable portion of the money you’ve saved up. Here’s where home renovation loans come to the rescue.

Suppose you’re a homeowner looking for additional funding to carry out a significant home renovation. In that case, it’s a good idea to get to know all the details about renovation loans before you apply for one. So, without further ado, let’s get into the details.

Who is eligible for a renovation loan?

Before you apply for a home renovation loan, you need to check if you are eligible for the funding. The exact criteria for eligibility may vary slightly from one lender to another, but broadly speaking, these are qualifying factors that you may be required to fulfill:

  • You must be the owner of the property that you are planning to renovate – this is true for all kinds of properties like individual homes, condominiums, apartments, HDB, or any other type of residential property
  • It would help if you were a Singaporean citizen or a Singaporean Permanent Resident
  • It would help if you were aged between 21 and 61 years of age to qualify for the loan
  • You must also meet the requirements regarding the minimum annual income – most banks and lenders will require that you have a minimum yearly income of $19,200, but in some cases, this limit may be higher, coming in at $24,000 or $30,000
  • You must possess a decent credit score

What are the documents that you’ll need to submit as a part of your application?

If you meet the qualifying criteria, the next step is to apply for a renovation loan. And when you use this kind of funding, you’ll be required to submit certain documents to the lender. Knowing what these documents are can help you get them ready on time, so the loan application process becomes smoother.

Generally, these are the documents that you’ll need to provide:

  • A copy of both sides of your original National Registration Identity Card (NRIC)
  • A statement of your contribution to the Central Provident Fund (CPF) for the 6 months preceding the date of your application
  • Your most recent payslip in a computerized format
  • Proof that you are the owner of the property that is to be renovated
  • An official quotation from the contractor handling your renovation project, complete with their stamp and signature

What can a renovation loan be used for?

Some borrowings, like personal loans, can be used for a variety of purposes. But renovation loans come with specific clauses attached, and they can only utilize them for a particular set of specific goals.

Here’s an illustrative list of some of the things that the money borrowed through a renovation loan can be good for:

  1. Repainting the walls, interior surfaces, and exteriors of your home
  2. Flooring and tiling works
  3. Mending or redoing the electrical and wiring works
  4. Carpentry works such as remodeling the kitchen cabinets, bedroom, or wardrobes
  5. Jobs related to the external components of the house, such as the roofing and fences

At this point, it’s also essential to make a note of some things that you cannot use a renovation loan for. You cannot use this kind of funding to meet the costs of home furnishing. That includes the costs associated with purchasing furniture like tables or cupboards, furnishings like curtains and linens, and other electrical appliances used around the house. Essentially, any expense that does not fall under the category of home improvement works cannot be funded using this product.

Conclusion

Therefore, you can buy the market to find the lender whose terms and conditions best suit your requirements now that you know all the basics of restructuring loans. To make a comparison like this easier for you, head over to Lendela’s online application and shop for the ideal renovation loan for your home improvement project.

A lower loan ceiling is one of the advantages that renovation loans bring to the table. This helps keep renovation expenditures in check at the right level. Also, in most cases, renovation loans come with insurance included in the package, so if anything happens to the borrower, the insurer takes care of the outstanding amount.

More often than not, it will take you some time to move to your first home or a new home together. Renovations are just part of your own property and can also be part of your home funding package with some smart planning. Install your initial renovation project to take up your money instead of waiting for years or using hard-earned savings.

Renovation loans come in many forms and colors, but today we are addressing the exact implications and working methods for a renovation loan.

A renovation loan gives homeowners the money to renovate a home or to use the loan to make these changes, necessary or desirable. Renovation loans are offered in a variety of packages, including personal loans or government loans. Whatever route, the lender can help you find a way for your loan to be rolled into a package that eliminates the need to pay two separate debts.

If you are like most people, you would choose a home which expresses your own style. Whether it includes modern, high-end finishing, solid surface controllers, or a rainforest-like shower, it will be your choice.

This is how it usually happens: You buy a high price fixer with a view to how you will put some sweat in and transform it into your dream home. That means, of course, finding time to do the job (goodbye nights and weekends), asking for help if you are not a builder or at least handy with tools, finding the finances you can afford (loans, shopping loans, additional cash, home equity loans) and keeping your dream alive throughout the whole scenario.

Or you might get a mortgage refurbishment. This option enables you to get the necessary money to purchase the property and the money to renovate your home. And everything has been rolled into a mortgage with affordable monthly payments. Just as importantly, you can pay for the job to be done and done quickly.

With the interest rates, you pay on your house payment at only $9 more per month, where they were in the past few years, for every $1,400 you roll into your mortgage. If you need to upgrade your kitchen by $28,000, plan a further $164 per month. Not too bad! Not too bad!

Depending on your credit, there are different options available location, the scope of work, and where you are in your mortgage procedure. We have already mentioned some options for home renovation loans, but they can take many forms and work in your favor.

There are multiple loan options available if you’re buying a home that needs repairs. It depends on the funding you choose to apply for how a home renovation loan functions. The following programs include popular home renovation loans:

Fannie Mae Home-style®: Includes the cost of domestic repair and the total amount of loans in the Fannie Mae Home-style® loan. You can use this loan to repair or modify the homeowner’s needs, and you can use it to pay for structural and cosmetic repairs.

This loan appeals to lenders, as they are only responsible for one loan, one monthly payment, and lower interest rates, both the purchase price and repair cost. A 15- or 30-year mortgage term can be selected, together with adjustable rates. Your final loan is based on the estimated home value with a Home-style® hypothecary after the repairs have been completed. For a buyer with the best credit with access to competitive interest rates, the Home-style® loan of Fannie Mae offers a good choice.

FHA 203(k): It is similar to Home-style® in government-supported loans but is open to less-credited buyers. This is the costliest option for both since FHA loans have higher mortgage insurance premiums for borrowers applying with lower down payments. These mortgages have an advance fee which is included in the loan’s overall principal.

FHA 203(k) is divided into complete and streamlined loans, and the type of loans you need depends on your property’s situation. The total FHA 203(k) loan is for a primary residence that requires serious or significant repairs, while the streamlined loan is used to cover less than $35,000 for minor repairs.

EZ “C” conventional: This loan can be used with traditional mortgages for non-structural repairs to homes that add value to the building.

Jumbo Renovation: A renovation jumbo loan is like the conventional EZ “C” one, but other home repair loans do not cover it for higher-price houses. You can use jumbo renovation lending for projects that the borrower wants to carry out or repairs. Reparations must be non-structural and should add household value.

USDA Rural Development Home Repair Loans: The USDA provides funding to help homebuyers secure decent housing through its Rural Development Program. You can use these financial supports to cover new equipment, foundations, siding, toilet panes, windows, plumbing, and other upgrades for health and safety reasons. The program’s eligibility is based on revenue (up to 50% of the area’s median income) and rural location.

If you cannot finance your house renovations out of pocket, your only option is a home renewal loan. You can also opt for a homeownership loan or HELOC credit line, which is cheaper than personal loans. If you have some stocks in your home but less than steel loans, this is a preferred option. The difference between the two is that a household equity loan is a fixed-rate lump sum, while the differential HELOC rates fluctuate at the rate of mortgages.

Take this into consideration to help you decide whether you have a temporary housing budget.

Homeowners must answer the same question for large and small remodels: should you find new space in your building and live in, or pack your sack and go? The answer is based on the size of your remodel, and you could never have thought about these nine other things.

1. Money. The most obvious consideration is more complicated than you would think. Yes, it will cost rental money, but if you’ve stayed and you’re in the way, it can also cost money. Some business owners charge more for projects where customers remain, knowing that there will be additional cleanup costs, a rush for mechanical work so that plumbing and electricity service are not interrupted.

This is the best calculation with a heavy dose of reality and in consultation with your contractor. Now is the time to do just this if you’ve never come to a house undergoing renovation, so you can get a clear picture of the impact your plan is having on your home.

2. Purpose. The project type can reply to the stay-or-go question immediately. You will probably want to move out if your roof comes off for a second story or when your house rises. Such renovations prevent the heating or cooling of a home effectively and usually involve the cut-off of plumbing, electricity, heating, and air conditioning. When you know the plan will include a huge blue tarp, consider your invitation to an alternative residence.

3. Scope. Work involving more than half of your home or all of your bathrooms and kitchens will also exclude stays at home. Most families can get away without a kitchen, but without a bathroom does not mean that you or yourself have clean dishes. And there’s not a home in a single sleeping room.

4. Pets. The key with animals is to keep them away from your building part. Temporary doors and Zip Walls could help but, even though they are physically separated from the work area, sometimes unceasing noise and activity can make cats and dogs disruptive. Buyers are as concerned about your animals as they are, but you should know their limitations. Some contractors request special contractual clauses which state that they are not responsible for the animals if they escape.

5. Kids. The work that takes place often fascinates children. But if you have gone a long way talking to carpenters with your children, the cost will increase quickly. Also, the workers at home can’t stop making noise at nap (remember, you pay it an hour), so you need to find another place to rest or bite the bullet and rent it. If you have a young child

6. Cooking. A provisional kitchen can only get you through a remodeling kitchen. A hot plate, microwave, and toaster oven are ideal for making food safe and affordable. Preparing and freezing meals is highly effective if you can continue with a freezer, thanks to the remodeling scope. But it may be daunting to prepare food for four to six months. Jennifer Bartlett, the house owner, produced and froze food for two months, so she didn’t need to eat. This required a new freezer, but it was a solution that she was happy with during her kitchen remodel and home office addition.

7. Cleaning. Would you please not underestimate how long you could wear it on you? It may take a few weeks to wash your dishes in the bath. And expect dust to collect around your home even with thorough site protection. It is worth asking your contractor to run an air handler for the project’s duration to filter off your pollution.

8. Sheetrock. You can strike a pleasant medium by staying ahead and going back in the demolition phase until the Sheetrock phase. If you wait for Sheetrock to finish, you will avoid the disastrous, dusty, and noisiest parts of the project. This usually occurs two-thirds of the way through a project and means that a rental can save a third. However, your location won’t be ready to move.

9. Having to go even if you stay. Particular renovations require no occupancy, although, for most of the project, you can visit. Finishing hardwood floors usually means staying away at least two separate occasions for at least a day, for example, while the fumes disappear. So even if you camp at home most of the time, know that sometimes, you may need to leave anyway.

10. Peace of mind. You can be sure that you are aware of the situation in your home when you stay. Going away also has its advantages. The entire house remodeling for homeowner Peter Lang’s maid was finished earlier this year, and he has decided to leave. “My advice on major restructuring: Rent budget — it’s less painful if you don’t feel like an extra cost — and leave, “He’s telling him. “The remodel takes a lot of your time; you don’t have to wallow through the daily activity.”

Not only does renovation give you knew life, but it also increases the retail value. Consider a loan or credit line to help cover these charges if your desired renovations total thousands of dollars.

Types of renovation loans that are available

The loan option you need depends on the refurbishments you undertake. In general, loans are better for one-off use. For instance, it is a separate project to install a slate roof, add a family room, and build a new garage. On the other hand, the following year’s plans to refurbish the kitchen and toilets are ongoing, allowing you to take more interest in a credit line. This is a snapshot of the functions of each option.

Loan: A personal loan grants you the money you need to buy a lower interest rate than a credit card while providing you with a timeframe for paying your loan. The property in your home can be used as collateral to secure your renovation loans, which can enhance your interest rate. You can also customize credits to ensure you can select your preferred pace and your preferred reimbursement plan, whether fixed or variable.

Line of credit: If your renovation plans are continuous, consider the CIBC Home Power Plan® or a personal credit line. These two products enable you to borrow and pay back the money as needed.

You might think a credit line is a credit card-like line. If you have access to funds, you don’t have to apply again each time you like to use them, and you will add a lower interest rate to a credit line. It is, therefore, a more flexible solution because you will have peace of mind when the time comes, even if you don’t know exactly how much you will need to do with a particular project.

You also can secure the loan with a credit line by using your home as collateral to lower your interest rate. Moreover, you can take money from your bank card, bank machine, online and more on your credit line.

Maximize your loan with these renovations

The time has come to prioritize your house renovations with your funding in place. Your loan or credit line is more expensive than others for renovations. Consider improving your home to improve your comfort and resell value both:

  • Update your bathrooms: Make your bathrooms contemporary with new fittings, a toilet that runs low, cabinets that save space, fresh paint, and new tile. Refurbishing bathrooms can achieve an investment return of 56% higher than the average.
  • Expand the kitchen: Invest in updated cabinetry and devices if you have a small galley kitchen or a poorly laid kitchen. You can see here an ROI 44% higher than average from your work.
  • Replace the floors: Floors of hardwood are a significant sales outlet in homes. Invest in refinishing them if you have them. Rip this out and spruce up the floors if you have tired carpet on the top of lovely floors.

You might wish to revise the following refurbishments, on the other hand. Generally, when you sell your home, they don’t catch much more.

  • Landscaping: While improving the appeal of your home, over-boarding can help you to sell it. It may be off-putting if you build a Jordin that looks complex and the potential buyer has no green thumb.
  • Adding a swimming pool: This luxurious thing is a nice touch to your home, but only if you’re committed to everything.
  • Adding skylights: If you wish to add more light to a skylight room, please note that buyers will not pay a feature premium.
Renovation loans are commonly used for the renovation of many homemakers in Singapore. I wrote a post before: Renovation loan tips. While the position has helped many homeowners apply for their renewal loans, homeowners still ask many questions. That’s why I write this post to help all my readers. My friend who works at the bank supports this post. Here are some of the questions commonly asked about renewal loans:

Why do banks reject my application?

Response from banker: Bank usually does not accept the loan either you do not have your repayments, or your repayment history is terrible. The applicant does not have all the criteria, which comply with the bank guidelines and requirements. Another common reason is that.

What does it mean to you?

It means you may not receive a loan if you have a bad credit history. It is the same as applying for any loan from other banks. Briefly, banks lend only to the debtor with payment capabilities. You can always try to use it if you know that your credit history is not good but still want to get a renewal loan. It’s no harm to try. You could only get approval for the loan. Be prepared, however, to refuse your request mentally.

How do I improve my chance of getting a renovation loan?

Answer from the banker: Ensure you are free of debt to improve the restructuring loan chances. For example, there is no outstanding payment for your credit card or credit line, or you have no credit problem with any of the banks.

What does it mean to you?

It’ll be hard to be debt-free for most existing debt borrowers. You will most probably be able to pay your refurbishment in cash if you can clear your debt. You can get a guarantee (who has a good credit history only) for your credit application to get the renovation loan while still paying for your current loans or non-payment. The guarantor will have to pay you on your behalf if you default on your credit payment. The renovation loan with a joint applicant is another way to improve the opportunity for your loan application (who also need to have good credit history). In other words, you have to partner with someone (in the eye of the banks) who can repay the loan.

How to apply for a renovation loan that exceeds $30,000?

Response from Bankers: The maximum renewal loan under MAS is either $30,000 or $6x of the lower gross income monthly. We can apply for the division if you want to borrow over $30,000 and 2 house owners meet the minimum requirements ($2,500 per month) for the loan. The image below is:

  • This is provided that renovation quotation is above $30,000.
  • Simple calculation will be wife(A) & husband(B) are homeowners. An earns $4,000, B earns $4,000.
  1. If Joint application will $30,000.
  2. Split application will be $4,000 X 6 = $24,000. $24,000 X 2 = $48,000
  • Another example is A earns $1,500, B earns $4,000
  1. 1st Application – joint, $1,500 x 6 x 2 = $18,000
  2. 2nd application – single $4,000 x 6 – ($18,000/2) = $15,000
  3. Total loan will be $15,000 + $18,000 = $33,000

What does it mean to you?

That means that it is possible to use your renewal loan if you need more than $30,000. The above procedure is the legal way to apply for a renewal loan. You’re going to get a maximum of $60,000. But I’m “heard of” another way to get maximum credit (more than $30,000). The applicant can simultaneously apply for 2 or 3 loans from various banks. The banks simultaneously approve the applications.

All loan agreements may be signed simultaneously by the applicant. Only when the applicant collaborates with the interior design company is this method possible. The interior design company will receive all the cheques. Some interior design companies practice this method. This method. Would you please learn more about this method before proceeding? Don’t give me or my blog a quote, please. I only share with others what I “heard.”

What is the standard-issue that affects my loan application?

The most common problem is an incorrect submission of documents. No recent income paper or false evidence of ownership of the home, for example.

What does it mean to you?

Would you please provide the correct documents if you want approval quickly? Before submission, always check. The lead time for a loan application may be very long because many persons have approved the papers.

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About FR Capital

FR Capital is a Singapore consultancy firm that helps SMEs to secure business loans from banks and financial institutions. We concentrate on SME finance, and through our expertise and network, we help clients secure funding with low-interest rates efficiently and hassle-free.