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%
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
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.