OCBC Renovation Loan Review (2022): Go Green for Lower Interest Rates

Alevin Chan
Last updated Jun 13, 2022

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 

ProsCons
Attractive interest rates for as low as 3.98% per annumMaximum 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 instalmentTotal interest paid
1S$1,704.64S$455.72
2S$870.10S$882.44
3S$592.08 S$1,314.97
4S$453.19 S$1,753.30
5S$369.96S$2,197.44

Indicative interest – Eco-care Renovation Loan (S$20,000 loan)

Tenure (years)Monthly instalmentTotal interest paid
1S$1,702.82S$433.78
2S$868.32S$839.69
3S$590.30S$1,250.86
4S$451.40S$1,667.30
5S$368.15S$2,089.00

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

Eligibility criteria

  • 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.

Read these next: 
4 Things to Look Out for in a Renovation Loan
A Complete Guide to Kitchen Renovations
When to Use a Personal Loan for Home Renovations
Best Renovation Loans in Singapore


By Alevin Chan
An ex-Financial Planner with a curiosity about what makes people tick, Alevin’s mission is to help readers understand the psychology of money. He’s also on an ongoing quest to optimise happiness and enjoyment in his life.


Alevin Chan June 13, 2022 91220