Best Renovation Loans in Singapore in 2025

A renovation loan, also known as a home improvement loan, is a type of unsecured personal loan specifically designed to finance home renovations and repairs. Unlike secured loans that require collateral, renovation loans are approved based on your creditworthiness and income. You receive a lump sum of cash and repay it in fixed monthly installments over a set period.

While both renovation loans and personal loans offer financial assistance, they differ in their purpose and sometimes their terms. A renovation loan in Singapore is specifically for home improvement projects, while a general personal loan can be used for a wider range of expenses. Some banks may offer preferential interest rates or terms for renovation loans compared to general personal loans. It’s always wise to compare both and find the best fit for your needs.

Renovation loans can cover a multitude of home improvement expenses, including:

• Flooring (e.g., tiling, parquet)

• Carpentry (e.g., built-in wardrobes, kitchen cabinets)

• Electrical works (e.g., rewiring, lighting installation)

• Plumbing (e.g., pipe replacement, bathroom fixtures)

• Painting (interior and exterior)

• Kitchen and bathroom remodelling

• Extending or partitioning rooms

• Installing air conditioning units

• Window and door replacements

• Landscaping and outdoor improvements

Renovation loans in Singapore typically offer loan amounts up to 6 times your monthly income, often capped at S$30,000 or S$50,000, depending on the bank and your creditworthiness. The loan tenure, or repayment period, usually ranges from 1 to 5 years, allowing you to spread out your repayments over a manageable timeframe.

Interest rates for renovation loans vary depending on the lender, loan amount, tenure, and your credit profile. It's crucial to compare interest rates and repayment terms from different banks and financial institutions to secure the most competitive offer. SingSaver’s loan comparison table makes this process easy, providing a convenient overview of available renovation loans in Singapore.

To be eligible for most renovation loans, you'll generally need to meet certain requirements, such as:

• Minimum age (usually 21 years old)

• Singapore Citizen or Permanent Resident (PR) status

• Minimum monthly income (varies depending on the bank)

• Good credit history

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Besides renovation loans, homeowners in Singapore can also consider home equity financing options like home equity loans or cash-out refinancing to fund their renovations.

Renovation loans are unsecured personal loans specifically for home improvements. They offer a lump sum upfront, repaid in fixed monthly installments.

• Pros: Renovation loans offer faster approval with no risk to your property. This makes them a good choice if you want quick access to funds and prefer not to use your home as collateral.

• Cons: They have higher interest rates compared to secured loans because they are unsecured, lenders perceive them as a riskier type of loan. They might also only be available in lower loan amounts and might not be enough for very large projects.

MORE: Check if you pre-qualify for a renovation loan

Home equity financing lets you borrow against the value you've built up in your home. This can be done through a home equity loan (where you receive a lump sum) or cash-out refinancing (where you take out a new, larger mortgage and pocket the difference).

• Pros: Using your home as collateral typically results in lower interest rates. You can also potentially borrow a larger sum compared to a renovation loan.

• Cons: Your home acts as collateral, so there's a risk of foreclosure if you default. The application process can be more complex and time-consuming. You also need to have built up sufficient equity in your home to qualify.

Thinking of sprucing up your HDB flat with a fresh coat of paint or finally adding that dream kitchen island? Using a personal loan for home improvements is a popular option, but let’s weigh the pros and cons to help you make an informed decision.

Pros of using a personal loan for home improvement in Singapore:

• Fixed monthly payments: Personal loans come with fixed monthly payments, making it easier to budget and plan your finances. You'll know exactly how much you need to set aside each month, giving you peace of mind and financial stability.

• Fast funding: Need to get your renovation project started quickly? Personal loans offer fast approval and funding, often within a day or two. This can be a major advantage compared to other financing options that may take weeks to process.

• No collateral required: Unlike home equity loans or lines of credit, personal loans are unsecured. This means you don't need to put up your property as collateral, reducing the risk for homeowners.

Cons of using a personal loan for home improvement in Singapore:

• Potentially higher interest rates: Because personal loans are unsecured, they may come with higher interest rates compared to secured loans. This means you might end up paying more in interest over the loan tenure.

• No tax benefits: Unfortunately, you can't claim tax deductions on the interest paid on home improvement loans in Singapore. This is a significant difference compared to mortgage interest, which may be tax-deductible.

Ultimately, the decision of whether to use a personal loan for home improvement depends on your individual circumstances and financial situation. If you need fast funding and prefer fixed monthly payments, a personal loan could be a viable option. However, be sure to compare interest rates and loan terms from different providers to ensure you get the best deal.

Renovation loan interest rates in Singapore can vary significantly. Current average personal loans rates are around 5% and range from 4.08% to 5.88%. However, it's important to note that these are just starting rates and the actual rate you receive will depend on your individual circumstances.

Compare some of the top renovation loans in Singapore with our table detailing interest rates, fees, and special features. This table offers a snapshot of current renovation loan offerings.

SingSaver’s loan comparison tool simplifies the process of comparing the best renovation loans Singapore offers. It allows you to view loan details from various banks, making it easy to identify the most suitable option for your needs. Simply input your desired loan amount and tenure, and the tool will generate a comparison table showcasing available loans, interest rates, fees, and monthly repayments.

When comparing rates, pay attention to both the flat interest rate and the effective interest rate (EIR). The flat interest rate is a simple interest calculation on the principal loan amount, while the EIR reflects the true cost of borrowing, including fees and compounding interest. The EIR is usually higher than the flat rate and provides a more accurate comparison of loan costs. 

Factors affecting your renovation loan interest rates include:

Banks and financial institutions frequently offer promotions on their renovation loans. These can include discounts on interest rates, processing fee waivers, or even cashback rewards. Keeping an eye out for these special deals can help you secure a more attractive interest rate and potentially save money on your loan. You can often find information about current promotions on the banks' websites or through our comparison tool.

The loan tenure, or repayment period, you choose can also affect your interest rate. Shorter tenures sometimes mean lower interest rates, as lenders perceive less risk over a shorter repayment period. This is because there's less time for your financial circumstances to change or for unforeseen events to occur that could affect your ability to repay. However, a shorter tenure also means higher monthly repayments.

Your creditworthiness, reflected in your credit score, is a key factor in determining your interest rate. A good credit score demonstrates responsible financial behaviour and often unlocks better interest rates. Lenders use your credit history to assess your ability to repay the loan. A higher credit score indicates a lower risk of default, making you eligible for more favourable terms.

The amount you borrow can also play a role in the interest rate offered. Larger loans may sometimes have different rate structures. This is because larger loans represent a greater risk for the lender.

Lenders consider your existing debt load compared to your income. A lower debt-to-income ratio usually helps you secure better rates, as it indicates you have more disposable income and are less of a credit risk. Lenders want to ensure you can comfortably manage the loan repayments alongside your other financial obligations.

When comparing renovation loans in Singapore, there are several key factors to consider:

• Interest rates: Compare both the flat interest rate and the effective interest rate (EIR) to understand the total cost of borrowing. Don't just focus on the headline rate; the EIR gives you a more complete picture.

• Processing fees: These fees can vary significantly between lenders, so factor them into your overall cost comparison. Some loans may have minimal or no fees, while others can be substantial.

• Loan tenure: Choose a loan tenure that balances affordable monthly payments with the overall interest paid. A longer tenure means lower monthly payments but higher total interest paid over the life of the loan. A shorter tenure means higher monthly payments but less interest paid overall.

• Monthly repayment amount: Ensure the monthly payments fit comfortably within your budget. Consider your other financial obligations and ensure you can comfortably manage the loan repayments without undue financial strain.

• Loan amount: Confirm the loan amount meets your project requirements. Get accurate cost estimates for your renovation project to ensure you borrow enough but not more than you need.

• Eligibility criteria: Check that you meet the lender's income and residency requirements. Each lender has its own specific eligibility criteria, so make sure you qualify before applying.

• Reputation and customer service: Research the lender's reputation and customer service reviews. Choose a lender with a good track record and responsive customer support in case you have any questions or issues during the loan term.

Ready to transform your home but need a little financial boost? No problem! There are several avenues in Singapore where you can secure a personal loan to fund your dream renovation project.

1. Online Lenders

Online lenders offer a convenient and efficient way to compare personal loans from various providers in Singapore. With just a few clicks, you can browse through different loan options, compare interest rates, and find the best fit for your needs. Plus, the entire application process can often be completed online, saving you time and effort.

2. Banks

Most major banks in Singapore offer personal loans, providing a sense of security and reliability. You can benefit from competitive interest rates and the option of personalised support from bank representatives. If you prefer face-to-face interactions and guidance throughout the loan process, applying through a bank might be a good choice.

3. Credit Unions

Credit unions can be a great option for securing a personal loan, especially if you're a member. These member-owned financial institutions often offer lower interest rates and more flexible terms compared to banks. If you're already a credit union member or eligible to join one, it's worth exploring their personal loan options.

Embarking on a home renovation project can be exciting, but securing the necessary funds can sometimes feel overwhelming. Here's a step-by-step guide to help you navigate the process of getting a home improvement loan in Singapore:

1. Get a firm cost estimate

Before diving into loan applications, get a clear picture of your renovation costs. Obtain detailed quotes from contractors and suppliers to determine the total budget for your project. Knowing the exact cost will help you determine the loan amount you need and choose the most suitable financing option.

2. Compare loan options

Don't settle for the first loan offer you come across. Compare personal loans from different banks and online lenders in Singapore. Look for competitive interest rates, flexible repayment terms, and any associated fees. Consider using a personal loan comparison tool on SingSaver to simplify the process.

3. Check your potential interest rate and monthly payments

Many lenders allow you to pre-qualify for a personal loan without affecting your credit score. This involves a soft credit check that gives you an idea of the interest rates and loan terms you might qualify for. Pre-qualifying can help you narrow down your options and choose a loan that fits your budget.

4. Prepare the necessary documents

Once you've chosen a lender, gather the required documents for your loan application. This typically includes:

• NRIC (for Singaporeans and PRs) or Passport (for foreigners)

• Proof of income (e.g., latest payslips, income tax statements)

• Proof of address (e.g., recent utility bills)

5. Apply for the loan

You can usually apply for a personal loan online or in person at a bank branch. Online applications offer convenience and faster processing times. Once your application is approved, the funds will typically be disbursed to your bank account within a few days.

By following these steps, you can smoothly secure a home improvement loan and turn your renovation dreams into reality. Remember to compare your options carefully and choose a loan that aligns with your financial situation and project needs.

Home improvement loans in Singapore offer flexibility in financing a wide range of renovation projects. Whether you're dreaming of a stunning new kitchen, a luxurious bathroom upgrade, or simply adding a fresh coat of paint, a personal loan can make it happen.

To give you a better idea of the costs involved, here are some common home improvement projects in Singapore and their estimated expenses:

Note: These are just estimated costs and can vary significantly depending on factors such as the size of your home, the materials used, and the complexity of the project.

Remember, it's crucial to obtain detailed quotes from contractors and suppliers before finalising your renovation budget. This will ensure you borrow the appropriate amount and avoid overspending.