Renovation loans are for people in need of a home renovation or refurbishment. They let borrowers take out a loan to put towards property improvements such as flooring, tiling or electrical repairs. The best renovation loans in Singapore will:

  • Let you borrow up to 6 times of your monthly salary
  • Offer a flexible loan tenure
  • Have interest rates up to 4%

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How Can Moneylender Review help?

If you’re looking for renovation loans in Singapore, look no further. Forget approaching moneylenders and trying to get your head around processing and application procedures alone – we compare home renovation interest rates, fees and total costs for you, all in one place. This makes it much easier for people like you to compare deals clearly and get the best approved loan amount in minutes.

Moneylender Review’s straightforward loan application service compares moneylenders, meaning you can be sure of a faster application process. Our service will help you:

  • Compare loan offers from Singapore’s top moneylenders
  • See interest rate each lender charges
  • Find the best renovation and personal loans to meet your needs

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What is a Renovation Loan?

Here in Singapore, it’s not uncommon for repairs and renovations to a house or flat to cost upwards of $ 100,000 – and sometimes, we all need a helping hand.

A renovation loan is a specialized home loan that enables you to borrow up to 6 times of your monthly salary to fund your home renovation needs.

Whether you need electrical works to be carried out to the property, flooring and tiling repairs or more, these loans offer excellent rates.

What’s more, processing times can be very fast compared to other loans, the typical loan tenure is flexible and many moneylenders offer great deals to new customers.


What Can I Use a Renovation Loan For?

Renovation loans in Singapore are not quite as flexible as a standard personal loan or mortgage. Existing home loan customers might be surprised to learn that renovation loans can only be used to fund very specific home repairs, such as:

  • Flooring and tiling
  • Electrical and wiring works
  • Structural changes to your home
  • External works within the compound of your home
  • Bathroom, cabinet and furniture fittings

Regardless of whether you are borrowing $ 10,000 or $ 30,000, there are also certain eligibility requirements you need to meet before you can take out a renovation loan and access your funds.


How Do You Qualify for a Renovation Loan?

Before you apply for home renovation finance, you need to think carefully about what kind of repayment period will work for you and how much you can afford to borrow in total. You also need to make sure you meet the following eligibility criteria:

  • You must be at least 21 years old
  • You are a Singaporean citizen or permanent resident
  • You are the rightful owner of the property (or the rightful owner’s spouse)
  • You meet the standard minimum income requirement of $ 24,000 and above
  • You have a signed quotation from a contractor covering the intended renovation work

Depending on whether you’re applying for an OCBC renovation loan, a DBS renovation loan or a loan offered by a licensed money lender, the general terms, conditions and repayment period available may differ. Once you’ve found a loan that looks right for you, always check with the lender for a definite monthly income requirement and the most up-to-date T&Cs


What Should I Consider When Choosing A Renovation Loan?

First and foremost, you need to be sure that you can 100% afford to repay the amount you borrow, taking into consideration that you might need to pay up to 4% in interest costs. You should also keep in mind that any expenses outside of the intended renovation itself, such as fixtures and fittings, might not be covered by the total loan amount.

Always look out for the following when comparing loans:

  • A low interest rate
    Most banks charge 4-6% effective interest rate per year, while licensed moneylenders will charge an interest rate of anywhere up to 4% per month. Try to shop around for the best deal.
  • The right loan amount to suit you
    There will always be a minimum or lower income requirement, which will depend on the loan amount you’d like to borrow. You should never borrow more than you can realistically afford, and always ensure you choose a suitable repayment period.
  • An affordable fee for processing
    Licensed moneylenders in Singapore usually charge a one-time processing fee of less than 10% of the loan principal. Compare deals to see who has the lowest fees.
  • Trustworthy loan providers
    With so many money lenders and banks on the market, it’s sometimes hard to tell which ones are legit. Double-check licenses with the Ministry of Law and look for recognizable names.

There are certainly a lot of things for new customers to take into consideration – but don’t let this put you off. If you need home renovations and improvements, finding the right place to take out a low interest rate renovation loan in line with your income could be the perfect low cost, low fee solution. Especially if you opt for a licensed moneylender loan with Moneylender Review.


Get Renovation Loan Quotes in Minutes

Try out our loan comparison tool to look at loan offers from the top licensed moneylenders in Singapore – then simply pick whichever is lower cost, or best meets your unique needs.



Frequently Asked Questions (FAQs)

Renovation Loan

Who is eligible for renovation loans in Singapore?

Any Singaporean resident or permanent citizen that wants to fund qualifying home improvements to a house or flat that they (or their spouse) own(s) can apply. However, at least 1 applicant needs a minimum annual income of $ 24,000 – otherwise you might want to consider applying for a personal loan instead.

What kind of fee or fees can I expect to pay in Singapore?

If you are borrowing from a bank, you may have to pay a processing or handling fee of 1%, along with late payment fees of around $80 or cancellation charges of 1%. If you are borrowing from a moneylender, the processing fee is not more than 10% of the principal and late fees will be $60 per month.

What if I want to pay off the loan early?

If you want to pay off a renovation loan before the term comes to an end, you may have to pay an early repayment fee - but only if you are borrowing through a bank. This will usually total around 1 to 2% of your outstanding loan balance. 


Moneylenders don’t have early repayment fees.

What type of loan is best for home improvements, and why?

While a home loan or mortgage might make more sense when purchasing a home, funding renovations is a completely different ball game. Renovation loans are specifically tailored for this purpose and tend to offer lower rates and better repayment packages than alternative options, such as a standard personal loan or credit card. They also allow you to borrow very generous amounts.

How much can you borrow with a renovation loan?

Ordinarily, you can borrow a total loan amount of up to 6 times of your monthly salary. However, you should always check the terms and conditions of your desired money lender, as limits can vary between providers. We would also advise you to ensure you can definitely afford to repay the full loan amount as well as the agreed interest rate.

What if my renovation costs exceed my planned budget?

It’s not uncommon for home refurbishments to wind up costing more than originally planned – or even exceed your maximum loan amount. In this scenario, we’d suggest comparing personal loan options with licensed moneylenders to cover the additional costs you may have incurred.

How do you apply for renovation loans in Singapore?

You can either approach a money lender or bank directly or compare the best renovation loans currently on the market using a trusted comparison and reviews website like Moneylender Review.

What documents are needed to apply for a renovation loan?

Once you’ve decided on the perfect loan with the best interest rate to suit your renovation needs, you will need to be prepared to present the following documents to your desired lender:

  • Your last 3 months’ payslips
  • An invoice from a Singaporean contractor detailing the intended renovation works
  • Your NRIC or passport

What are the differences between a renovation loan and a personal loan?

There are a number of key differences between personal loans and renovation loans. While a personal loan can be used for just about anything, a renovation loan is intended specifically for the purpose of making home improvements, such as new flooring and tiling or electrical and wiring repairs.

What cannot be paid for with a renovation loan?

Renovation loans may offer a favorable interest rate over other types of borrowing, like traditional home loans, for example, but they tend to be much more restrictive than other types of loans. 

This is because they are specifically designed for borrowers who intend to fund home refurbishments and improvements only. This means they cannot be used for any purposes outside of the following:

  • Flooring and tiling
  • Electrical and wiring works 
  • Structural changes to your home
  • External works within the compound of your home
  • Bathroom, cabinet and furniture fittings

Can I apply for two renovation loans at the same time?

Most renovation loans let Singaporeans borrow up to 6 times of your monthly salary. However, actual renovations can often cost much more, so you might wish to take out more than one renovation loan at once. 

Theoretically, while this is allowed, it would mean you’d have to commit to paying two separate monthly repayments at the same time – which can be difficult for some people. We’d recommend seeking advice in terms of your Total Debt Servicing Ratio (TDSR) or considering applying for a personal loan with a higher borrowing limit before looking into the possibility of having multiple renovation loans in your name at once.

Can I borrow a renovation loan with my spouse?

Yes – just like with traditional home loans, this is entirely possible as long as either you or your spouse is a Singapore resident or permanent citizen, and the legal owner of the home you are seeking to renovate. You must also meet any necessary monthly income requirements relative to the loan amount you are applying for.

Can I use a personal loan to fund home renovations and repairs?

Yes, this is absolutely fine if you would prefer an unsecured loan offered by a money lender as part of their standard personal loan product line.

How do I choose the best renovation loan for me?

To choose the best renovation loan with the best rates to meet your unique needs, use Moneylender Review’s loan comparison service. This will help you compare the cost, rates, loan tenure options and more offered by Singapore’s top money lenders. 

Get the best loan with Moneylender Review today!