Are you planning to renovate your flat or apartment?
The thing that most people don’t know is that you don’t have to break the bank to purchase a secondhand apartment or to renovate your home. And for many people, it is actually quite easy to buy a secondhand apartment in Singapore.
Imagine you’re ready to buy your dream house. You’re excited but you want to make sure you get everything in writing, so you go online to your bank to check if it’s okay.
So what are the best ways to fund renovations for your new property that could range in price from $10,000 and $100,000? Enter renovation loans.
Banks in Singapore offer a range of loans. In fact, renovation loans are one of the most popular options as they can make your home more attractive, functional and energy efficient. With the perks provided, there are of course criteria and guidelines to be followed.
Personal loans for renovation projects
Renovation loans are often ideal for those seeking a bit more capital than they can afford, but still want to put some cash toward home improvement. With an affordable interest rate, renovation loans can be great for saving on costs without being out of pocket too much.
Best personal loans service you can try
HSBC
| Loan Duration | Flat Rate | Processing Fee | Effective Interest Rate | Monthly Installment | Total Cost |
| 1 year | 3.8% | S$0 | 6% | S$861 | S$328 |
| 2 years | 3.7% | S$0 | 6% | S$444 | S$637 |
| 3 years | 3.7% | S$0 | 6% | S$305 | S$952 |
| 4 years | 3.7% | S$0 | 6% | S$235 | S$1,273 |
| 5 years | 3.8% | S$0 | 6% | S$194 | S$1,600 |
| 6 years | 3.8% | S$0 | 6% | S$166 | S$1,933 |
| 7 years | 3.8% | S$0 | 6% | S$147 | S$2,272 |
| *Assuming S$10,000 loan and income of S$30,000; includes processing waiver & online cashback |
POSB/DBS Personal Loans
| Loan Duration | Flat Rate | Fee | Effective Interest Rate | Monthly Payment | Total Cost |
| 1 year | 3.88% | 1% | 8.89% | S$865.67 | S$488 |
| 2 years | 3.88% | 1% | 8.2% | S$449.00 | S$876 |
| 3 years | 3.88% | 1% | 7.9% | S$310.11 | S$1,264 |
| 4 years | 3.88% | 1% | 7.71% | S$240.67 | S$1,652 |
| 5 years | 3.88% | 1% | 7.56% | S$199.00 | S$2,040 |
| *Assuming loan of S$10,000 |
Best Renovation Loan for Bad Credit
Friday Finance
| Tenure | Interest Rate | Admin Fee | Monthly Repayment Amount | Total Cost |
| 3 Months | 2% | S$600 | S$5,201.32 | S$603.96 |
| 6 Months | 2% | S$600 | S$2,677.89 | S$1,067.34 |
| 9 Months | 2% | S$600 | S$1,837.73 | S$1,539.57 |
| 12 Months | 2% | S$600 | S$1,418.39 | S$2,020.68 |
| 18 Months | 2% | S$600 | S$1,000.53 | S$3,009.54 |
| *Assuming loan of S$15,000 |
Renovation Loan service from your mortgage lender
- Maybank renovation loan
- OCBC renovation loan
- DBS renovation loan
If you have been financing your renovations with a traditional home loan, then you will want to consider getting a renovation loan from the same bank. You should know that most banks give lower interest rates to people who have a home loan and renovation loan at the same bank.
If you’re an individual with multiple accounts and want a lower rate on all of them, consider combining the accounts. You’ll save money while getting a cleaner bill for yourself.
The typical loan consolidation results in a significant monthly savings for most borrowers. This savings ranges from a few hundred dollars to as much as $1000 for some borrowers who qualify for the maximum interest rate.
Be careful of miscellaneous fees
You may have to pay some of your loan at the start. The first thing to know is that you’ll pay interest on top of your loan. Also, you’ll probably have to pay disbursement fees.
Late payments are inevitable, but it doesn’t mean you can’t control how much they cost you. The key to managing any financial transaction is to be prepared and set your expectations accordingly.
You can use a renovation loan calculator to figure out how much you need for your home renovation project. You can also compare different renovation loans across the various banks in Singapore to get the most affordable option for your project.
Don’t worry!
MyRenoDiary as one of the experienced interior design agencies could surely help you through this process. The first thing to do is to identify what you need and how you want it. Then you’ll have to find the right contractor who can deliver your vision. In short, there are many steps in creating a new home. But with the right guidance, you will be able to get the perfect house for your family.
