Best Renovation Loan in Singapore 2020

The basic building blocks to your dream home start with your renovation. Here are the best renovation loans in Singapore for you to consider.

You've finally gotten the keys to your new home and it's time to start thinking about renovations. New Built-To-Order (BTO) flat owners may want to follow their own unique definition of industrial chic to a T, whereas resale flat buyers may want a complete do-over for a brand new feel. Either way, that’s where renovation loans come into play. 

Just like a personal loan, the key factors to consider are interest rates, loan tenure, loan tenures and maximum loan amount. One other thing to note: if you already have an existing home loan with a bank, it may be worthwhile to get your renovation loan from the same bank.  They may offer a preferential rate and reduce the complexity of managing multiple loans. 

Here are the best renovations loans in Singapore 2020.

Best for Lowest Interest Rate: HSBC Personal Loan

If you are looking purely at low interest repayments while bank-shopping, look no further than HSBC.

HSBC may not have a specialised renovation loan at hand, but its personal loan would serve you well at only 3.7% per annum for interest, given that annual income of applicants is S$30,000 and above. Even better news: processing fee is at an absolute zero for those who apply via SingSaver.

One other edge HSBC’s personal loan has over other banks’ renovation loans is the longer loan tenure allowance at up to 7 years. If you are planning for a swanky renovation that requires a longer time horizon to finance, this may be the option for you. 

Minimum loan amount is S$5,000 and the maximum you can borrow is 4 times your monthly income (applicable for annual salary of S$30,000 - S$120,000), or 8 times if you are drawing S$120,000 and above.

Best for Lowest Interest Rate (existing home loan): DBS Renovation Loan

Assuming you already have an existing home loan from DBS, you’ll find very attractive interest rates in store when you take up a renovation loan with them. You enjoy a preferential 2.88% per annum (3.88% p.a. for those without an existing home loan) with choice of tenures between 1 and 5 years. You may borrow up to 6 times your monthly salary or a maximum of S$30,000, and the disbursement is free for you to use for renovations such as electrical works, bathroom fittings, flooring, redecoration works and more. 

Although you would be paying a little higher in fees compared to other banks, it does include comprehensive insurance coverage to protect against untoward events over the course of the project.

You will need a DBS or POSB deposit account to service your loan.

Best For Short-term Loan: Standard Chartered CashOne 

With a guaranteed flat interest rate of 3.88% p.a. (EIR from 8.04% p.a.), regardless of loan amount or tenure, the Standard Chartered CashOne Personal Loan is one of the best options if you’re in the market for short-term loans.

Standard Chartered charges a first year annual fee of $199. However, you do enjoy 50% cashback on your first month's instalment and also get $20 cashback when you apply via MyInfo.

You may borrow up to 4 times your monthly salary or a maximum loan amount of S$250,000, repayable up to a maximum of 5 years. For those earning annual income of S$30,000 and above, you can take advantage of the 5-year annual fee waiver on the accompanying Standard Chartered Platinum Visa credit card to better manage your daily expenses. 

Best for Meeting Income Requirement: CIMB Renovation-i Financing

If you want to see your dream home come to life but hit a roadblock finding it, consider the CIMB renovation loan package.

You can already qualify for a renovation loan of between 1 and 5 years if your annual income is S$24,000 and above, below the market standards of S$30,000. Joint applicants are also allowed here for the same requirement. 

CIMB offers competitive monthly rates from 4.2% p.a., whether you’re an existing CIMB home loan customer or not. It only charges a one-time processing fee of 1% on the approved financing amount, which is lower than its equivalents at other banks that may go up to 2% to 4%.

You may borrow up to 6 times your monthly salary or a maximum of S$30,000. Upon submission of your application (be sure it’s done by 4pm on a working day), you could get an in-principle approval as quickly as 24 hours. 

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