The OCBC Renovation Loan is one of the most competitively priced renovation loans on the market, and it offers additional savings for going green.
If your home is due for a renovation, consider implementing energy-efficient measures. This doesn’t only allow you to benefit from lower utility charges, but it will also make a difference against climate change.
You will also be rewarded for transitioning to a more eco-friendly approach if you happen to get a renovation loan from OCBC. The bank offers a promotional rate for homeowners whose properties are verified to be energy efficient under its Eco-Care Renovation Loan.
But if you don’t qualify for Eco-Care, is the OCBC Renovation Loan still worth getting?
What the OCBC Renovation Loan can do for you
OCBC Renovation Loan product summary
- Borrow up to six times your monthly salary or S$30,000
- Allows joint borrowing (parent and child, siblings, spouse)
- Up to five years loan tenure
- Interest rates
- Renovation Loan: 4.18% per annum
- Eco-Care: 3.98% per annum
- No charge for the first three Cashier’s Orders
- Fast and secure online loan application with a 60-second in-principal approval
- Chargeable insurance included
Pros and cons of the OCBC Renovation loan
|Attractive interest rates for as low as 3.98% per annum||Maximum loan amount of S$30,000 or six times your monthly salary (whichever is lower)|
|A low annual income requirement of S$24,000||1% insurance fee|
|Up to five years loan tenure||0.5% admin fee|
|Joint borrowing allowed with a parent, child, sibling, or spouse|
Why should you choose the OCBC Renovation Loan?
#1: Rewards eco-friendly homeowners
The OCBC Renovation Loan rewards homeowners who improve their properties’ energy efficiency. Those who pass the Tropical Home Energy Efficiency Assessment (a quick online test) qualify for the Eco-Care Renovation Loan, which comes with a lowered interest rate of 3.98% per annum.
#2: Competitively priced renovation loan
The OCBC Renovation Loan has a base interest rate of 4.18% per annum. Given that renovation loans tend to cost thousands, this can garner a significant amount of savings compared to other loans with higher interest.
#3: Lenient eligibility criteria
With an annual income requirement of just S$24,000, qualifying for this loan is doable. You may also make a joint application with a parent, sibling, or spouse, and only one party is required to reach this income threshold.
#4: Can borrow up to six months of your salary, or S$30,000
This loan allows you to borrow up to six months of your salary, or S$30,000, whichever is lower. This high loan quantum gives you the chance to renovate your home even with lower savings.
Who should get the OCBC Renovation Loan?
The savings offered by the Eco-Care variant of the OCBC Renovation Loan will no doubt attract homeowners who want to improve their properties’ energy efficiency.
Similarly, if you have an interest in smart devices that automate your home, such as those that automatically turn off switches, or monitor electricity usage, you could qualify for Eco-care and enjoy lower interest rates.
That’s not to say that the standard OCBC Renovation Loan isn’t a good option. As mentioned, the loan is competitively priced with an interest rate of 4.18% per annum, and allows you to borrow up to six times your monthly salary (capped at S$30,000), which should suit a wide range of homeowners.
Interest rates, fees, and eligibility criteria
Indicative interest - Renovation Loan (S$20,000 loan)
|Tenure (years)||Monthly instalment||Total interest paid|
Indicative interest - Eco-care Renovation Loan (S$20,000 loan)
|Tenure (years)||Monthly instalment||Total interest paid|
The tables above illustrate the OCBC Renovation Loan and its Eco-Care variant’s monthly instalments and total interest based on a loan amount of S$20,000.
If you qualify for Eco-Care, you could potentially save around S$100 in interest for a five-year loan.
The figures displayed here are indicative. You may generate your own estimates using the OCBC Renovation Loan calculator.
Charges and fees to note
Before applying for the OCBC Renovation Loan, pay attention to the following fees and charges. It also would be wise to read the loan’s complete list of terms and conditions.
- Admin fee: 0.5% of loan amount
- Insurance (covers outstanding balance at point of death or total and permanent disability): 1% of loan amount
- Cancellation fee: 2% of loan amount
- Prepayment fee: 2% of amount prepaid
- Full redemption fee: 2% of outstanding loan balance
- Late payment fee: S$80
- Age: 21 years old and above
- Nationality: Singaporean or Singapore Permanent Resident
- Annual income: At least S$24,000 (for join applicants, at least one party meet this requirement)
- Joint applicant: Must be with parent, child, sibling, or spouse
What to do before applying?
If you’re interested in applying for the OCBC Renovation Loan, here’s what you need to do:
- Estimate your renovation budget. You may do so using an online renovation calculator.
- Get a renovation quotation from your chosen contractor. You need an official quotation to apply for this loan.
- Click the 'apply now' button below.
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