In what case would you take a home renovation loan for your HDB flat in Singapore? Picture this: you’ve picked the best mortgage loan for your home, and the next item on your list is renovation. By this time you would perhaps be feeling the financial pinch already and may have withdrawn some of your CPF for the downpayment of your new home.
According to Qanvast, the median renovation costs for condos in 2023 range from $39,800 to $50,600 for a new condominium and $60,000 to $80,000 for a resale condominium. And for renovation costs for a BTO flat, expect to fork out between $49,500 to $62,800 for a 4-room flat.
So how do you fund the cost of your condo or HDB renovations? Enter home renovation loans. The interest rates for a renovation loan are by far lower than that of a personal loan. Also, tenures are shorter at a maximum of only 5 years, with a general maximum loan amount of 6 times your monthly wages and a cap of $30,000.
With the perks provided, there are of course criteria and guidelines to be followed.
Best Home Renovation Loans in Singapore in 2023
Here is a quick comparison of some of the best condo or HDB renovation loan packages that are available in Singapore. This is based on a minimum loan amount of $30,000 and a tenure of 3 years.
|
Bank/Loan Package |
Interest Rates (p.a.) |
Monthly Repayment |
|
CIMB Renovation i-Financing |
4.15% |
$887.72 |
|
OCBC Eco-care Renovation Loan Monthly Rest |
4.98% | $898.86 |
|
OCBC Renovation Loan Monthly Rest |
5.08% |
$900.20 |
|
Maybank Renovation Loan Monthly Rest |
6.53% |
$919.88 |
|
DBS Green Renovation Loan |
4.68% |
$894.82 |
|
DBS Renovation Loan |
4.88% |
$897.51 |
| Standard Chartered CashOne (Renovation) | 3.48% | $920.33 |
Renovation Loan Criteria in Singapore
In order to qualify for a renovation loan, a Singaporean bank will require the applicant to:
- Own a property
- Be a Singapore Citizen or PR
- Have a good credit score
- Fulfil the minimum income requirement (bank dependent)
There are also limitations on what your home renovation loan can be used for, including:
- Electrical works and wiring
- Tiling, flooring, and painting
- Basic bathroom fittings
- Property’s external compounds
Before Taking a Renovation Loan in Singapore, Know Your Loan Quantum
The loan quantum is based on your household income, the margin of finance, otherwise known as the Loan-to-Value (LTV) limit and your Total Debt Service Ratio (TDSR).
Different banks have different qualifying factors, with the majority of the banks offering reno loans up to six times your monthly income.
Renovation Loan Singapore: Miscellaneous Fees
On top of the HDB reno loan or condo reno loan you will take, be prepared to fork out more dough in the form of fees. There will be several fees to pay, such as disbursement fees, processing fees, and if applicable, late payment fees.
The disbursement fees are usually 1% of your approved loan amount. On the occasion that the borrower incurs late payment fees, they will need to be prepared to be charged about 5.7% of their loan amount.
You can use a renovation loan calculator to work out the amount you need. You can also put in the legwork to enquire and compare renovation loans across the various banks in Singapore to determine the best renovation loan.
Taking a Personal Loan to Finance Your Condo or HDB Renovation Instead?
Thinking of renovating your HDB and taking a personal loan instead? Browse and compare the various personal loans available in Singapore on Lendela, at no cost!
If you’re set on taking a renovation loan, check out the available home renovation loans you can take.
Renovation Loan Singapore: Comparing Condo/HDB Renovation Loans (2023)
Let’s take a look at some of the home renovation loans in the market as of 26 April 2023, based on a loan amount of $30,000 and a tenure of 3 years.
CIMB Renovation i-Financing
|
Loan amount |
$30,000, with a tenure of 3 years |
|
Interest rate (p.a.) |
4.15% |
|
Monthly instalment |
$887.72 |
|
Total payable interest |
$1,957.92 |
|
Processing fees |
1.2% of the approved loan amount |
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 55 years old, salaried or self-employed with a minimum annual income of $24,000.
OCBC Eco-care Renovation Loan Monthly Rest
|
Loan amount |
$30,000, with a tenure of 3 years |
|
Interest rate (p.a.) |
4.98% |
|
Monthly instalment |
$898.86 |
|
Total payable interest |
$2,358.96 |
|
Processing fees |
0% (but there is a 0.50% admin fee on the loan amount charged) |
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 59 years old, salaried or self-employed with a minimum annual income of $30,000.
OCBC Renovation Loan Monthly Rest
|
Loan amount |
$30,000, with a tenure of 3 years |
|
Interest rate (p.a.) |
5.08% |
|
Monthly instalment |
$900.20 |
|
Total payable interest |
$2,407.20 |
|
Processing fees |
0% (but there is a 0.50% admin fee on the loan amount charged) |
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 59 years old, salaried or self-employed with a minimum annual income of $30,000.
Maybank Renovation Loan Monthly Rest
|
Loan amount |
$30,000, with a tenure of 3 years |
|
Interest rate (p.a.) |
6.53% |
|
Monthly instalment |
$919.88 |
|
Total payable interest |
$3,115.68 |
|
Processing fees |
1.25% of loan amount or a minimum $150; whichever is higher |
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 55 years old, salaried or self-employed with a minimum annual income of $30,000.
DBS Green Renovation Loan
|
Loan amount |
$30,000, with a tenure of 3 years |
|
Interest rate (p.a.) |
4.68% |
|
Monthly instalment |
$894.82 |
|
Total payable interest |
$2,213.52 |
|
Processing fees |
1% of the approved loan amount |
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 65 years old, salaried or self-employed with a minimum annual income of $24,000.
DBS Renovation Loan
|
Loan amount |
$30,000, with a tenure of 3 years |
|
Interest rate (p.a.) |
4.88% |
|
Monthly instalment |
$897.51 |
|
Total payable interest |
$2,310.36 |
|
Processing fees |
1% of the approved loan amount |
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 65 years old, salaried or self-employed with a minimum annual income of $24,000.
Standard Chartered CashOne (Renovation)
|
Loan amount |
$30,000, with a tenure of 3 years |
|
Interest rate (p.a.) |
3.48% |
|
Monthly instalment |
$920.33 |
|
Total payable interest |
$3,132 |
|
Processing fees |
None |
Eligibility criteria: Singapore Citizen or PR, aged between 21 to 65 years old, salaried, variable/commission-based employees, or self-employed with a minimum annual income of $20,000.
Who to Take a Renovation Loan from?
You can usually get a discount if you were to obtain your home renovation loan from the same bank that provided you with your home loan. Many of the websites such as POSB and OCBC, will in fact enquire if you have an existing home loan with them before they allow you to proceed to the calculation.
This is another example of choosing your home renovation package carefully. When working out the math, consider interest rates, monthly instalments, and processing fees to pick the best package.
Another thing to look out for is the freebies that the banks might throw your way. Take those into account, and see if the freebies will help you lower your repayments and get the most value.
Do also take into account all your other loans (e.g. education loan, mortgage loan, vehicle loan, etc,) and try to keep your home renovation loan repayment to only 30% of your debt-to-income ratio.
Now all that’s left to do is to pick a loan and start renovating your home!
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