Home Improvement Loan Calculator – There are many renovation loans available in Singapore. Below we compare the costs of these loans. We assume that the borrower takes out a renovation loan of S$15,000 over 5 years and does not qualify for the concessionary rates for returning customers (i.e. they do not already have home loans from a particular bank).
Maybank’s competitive interest rates make it a good option for those looking for a larger renovation loan. First, Maybank’s interest rate of 6.53% (Reno Loan Board rate minus 4.32% p.a.) for new customers (minimum term 3 years) is one of the lowest 4-5 year loans available, making it suitable for larger loans. The bank also offers significantly lower rates if you already have a home loan with Maybank. For existing home loan customers, Maybank will reduce interest rates to 3.88%, the lowest in the market.
Home Improvement Loan Calculator
DBS offers some of the most affordable long-term renovation loans with a low interest rate of 4.88% p.a. This suggests those who will need a larger renovation loan or would like to spread the total cost of the loan over a longer period of time. With this in mind, DBS charges higher than average fees (1% processing fee + 1% insurance premium) and does not offer the best short-term rates. Therefore, those who need a smaller renovation loan would be better off choosing a different lender.
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CIMB Renovation-i Financing’s renovation loan offers some of the best rates for long-term renovation loans or projects above S$25,000. In addition, Renovation-i Financing offers some of the lowest effective interest rates and fast 1-day turnaround. for homeowners looking for immediate funds. The bank also has lower introductory fees as it charges a processing fee of 1.2% and no administrative fees. Borrowers can also opt for flexible tenures of up to 5 years covering all types of residential properties, whether completed or under construction.
For those looking to completely remodel their home, a renovation loan of S$30,000 may not be enough to cover the entire renovation cost. These individuals would be wise to consider a personal loan. However, individuals seeking a loan of S$30,000 or less will save money with renovation loans, which typically charge lower interest rates than personal loans.
HSBC offers the most affordable personal loans for most consumers. For example, the bank’s effective interest rate is 7.5% per year. is the best available. In addition, the bank tends to offer competitive promotions. The bank is also ideal for those who need a large loan for a renovation project, as it is the only bank that offers loans for 7 years. This helps homeowners who want to spread the total cost of the loan over several years. Finally, HSBC is a great option for expats and other foreigners living in Singapore as its income requirements for these consumers are lower than other banks (S$40,000).
POSB and DBS offer instant cash disbursement to approved online applicants for their personal loans. In addition, banks offer rates from 3.88% (EIR 7.56%), which are very competitive. So if you need quick funding to start your renovation, it’s worth considering POSB or DBS.
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Note: The interest rate and processing fee offered to you is based on your personal credit history and income profile. It may differ from the published rate and the rate offered to other borrowers.
Friday Finance is a moneylender that provides personal loans that you can use for repairs, even if you have bad credit or low income. These loans are a good option for people who want to take a short term loan as the maximum term is 18 months. Customers will pay 1-3% interest per month depending on their specific circumstances. However, banks typically charge 3-6% per year, so they would be a better option for long-term renovation loans.
Customers who earn more than S$20,000 a year can borrow up to 6 times their monthly income, otherwise you have a loan limit of S$3,000. These renovation loans can be either secured or unsecured. covered by their insurance policy, at no cost to you. This means that your credit obligations will be reduced if you are unable to repay the loan due to an accident that caused your permanent/temporary disability or death. In addition, if you repay the loan on time, Friday Finance will refund you 50% of the administration fee.
If you have already taken a home loan from a bank, we recommend taking a loan for renovation from the same bank. This is because banks provide lower interest rates to those who get both a home loan and a renovation loan from the same bank. By doing this, you can also benefit by reducing the complexity of managing multiple bills from different parties each month. Banks usually offer 25-50% cheaper rates to these customers. For example, Maybank’s interest rate drops from 6.53% to 3.88% for their home loan customers. For most loans, this means hundreds of dollars in savings. For a detailed analysis, please refer to the table below.
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When shopping for a renovation loan, the main factor you need to consider is the total cost of the loan. This includes both processing fees and interest charges. Above, we’ve rounded up all the renovation loan offers from Singapore’s top lenders by cost. To calculate the total cost, we assume a loan of S$15,000 over 5 years for a borrower with an annual income of at least S$30,000. Considering that a home renovation costs an average of S$55,000, this loan would cover about 25% of the total cost of remodeling your home.
On average, home improvement loans in Singapore pay around 5.33% interest. This does not include a one-time upfront processing fee of 0.75-2% and the total cost is around 6-7%.
Ideally, you would have enough savings to cover the cost of home renovations. The average cost of home renovation can vary from 6-7%. However, there are many scenarios where renovation loans are a necessary choice. One example is those who are moving into a new home on short notice but don’t have the savings to cover the cost of renovations.
One of the biggest differences between home improvement loans and personal loans is flexibility of use. A personal loan can be used for any purchase(s), while a home improvement loan can only be used for home renovations. Also, the amount that can be borrowed in Singapore may vary. The loan amount for most renovation loans is up to S$30,000, while a personal loan can be over S$250,000.
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Stephen Lee is a senior research analyst at , specializing in insurance. He holds a Bachelor of Arts in International Studies from the University of Washington, and his previous work experience includes risk management and underwriting professional liability and specialty insurance at Victor Insurance. In addition, Stephen is a former US Peace Corps Volunteer in Myanmar (per day 2018-2020) where he continues to provide business development consulting services to HR firms in the Asia-Pacific region.
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