My Reno Diary

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+65-6255 1010

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Singapore 408569.
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You may have heard of commercial renovation loans in Singapore before, but have you ever given any thought to what exactly it entails? How does a renovation loan work in Singapore? What is the process involved? Are renovation loans a good idea?

A lot of people find the idea of getting commercial renovation loans in Singapore very attractive. But they don’t really know how to go about it. They don’t know what type of loan they need and what is the best deal available for them.

The truth is, commercial renovation loans are not something you should get just because it sounds good. You should only get one if it is something you really want.

In this article, I’m going to give you some great information about what commercial renovation loan in Singapore is all about. This is going to give you an insight into the entire process and what you can expect. So if you want to know more, then this article is the right fit for you!

1. The Maximum of Renovation Loan

The maximum loan amount for a renovation loan varies depending on the lender, but it is typically around 80% of the value of the property. For example, if the property is worth $100,000, the maximum loan amount would be $80,000. This means that the borrower would need to come up with the remaining 20% in cash.

Meanwhile, the maximum amount that you can borrow for your renovation loan in Singapore is capped at S$30,000. This is regardless of the size of your home or the scope of work required. This amount can be used for a variety of renovations, such as fixing up a home before selling it, making repairs after a natural disaster, or updating a home to make it more accessible for an aging parent.

If you are considering a renovation loan, be sure to compare offers from multiple lenders to get the best rate and terms. You will also need to have a detailed plan for your renovations, as the lender will need to approve the work that will be completed with the loan funds. And as with any loan, be sure to only borrow what you can afford to repay, and make your repayments on time to avoid damaging your credit score. If you’re not sure how much you can afford, speak to a financial advisor to get an idea of what you can realistically afford to borrow.


2. The Best Bank for Renovation Loan

There are many different banks in Singapore that offer renovation loans. But which one is the best? The answer to this question depends on a few factors, such as the size of the loan you need, the interest rate, the repayment period, the fees and charges, and other terms and conditions.

For example, if you need a large loan amount, you might want to consider OCBC, as they offer the highest maximum loan amount of any bank in Singapore. If you’re looking for a low interest rate, DBS renovation loan is a good option, as they offer one of the lowest rates for renovation loans. Either way, you need to choose a bank with a repayment period that suits your needs and be sure to compare the fees and charges of different banks before you make your decision. Ultimately, the best bank for you will depend on your specific needs and financial situation.


3. How the Renovation Loan Disbursed

In Singapore, the renovation loan is disbursed in two tranches. The first tranche is released when the renovation contract is signed, and the second tranche is released upon completion of the renovation works.

For most banks, the minimum amount that can be disbursed for the first tranche is $5,000, while the second tranche can be as low as $500. The total amount that can be borrowed under this loan scheme is capped at $30,000.

It is important to note that you will need to repay the loan, plus interest, over a period of time. The repayment period can vary depending on the lender, but is typically between 1 to 5 years and the interest rate is typically pegged to the prime lending rate of the respective bank.


Find Out More about Commercial Renovation Loan with MRD!

MRD Singapore is the perfect formula for you to make your interior dream come true. One of the main keys to great interior design is that it should be thematic and reflect your personality and taste as well as be cost-effective. 

With so many styles, trends and designs to choose from, it’s hard to decide which one to go for. With MRD, you can definitely prevent this situation and get the best dream design you ever wanted but better. No more stress, contact us here to solve your interior problems.