Renovation Loan
Find the Right Renovation Loan
for Your Dream Home
Planning to renovate your home but facing a budget shortfall? A renovation loan can help ease cash flow and make your dream home a reality. To guide you in choosing the most suitable financing option, we’ve compiled the key factors you should know and consider before applying.
Explore Renovation Loan Solutions From Our Trusted Lending Partners.
Explore Renovation Loan Solutions From Our Trusted Lending Partners.
Eligibility Check
Why Take a Renovation Loan
If you’re planning to finance your home renovation, a renovation loan is often the more cost-effective choice due to its lower effective interest rates (EIR). However, with a typical cap of S$30,000, you’ll need to manage your renovation budget carefully.
Start by focusing on essential renovation works such as plumbing, electrical wiring, and structural upgrades. If additional funds are needed for non-essential improvements like interior design or furnishings, you may consider topping up with a personal loan.
Keep in mind that renovation loans require some preparation:
- You must select a contractor in advance
- Finalise your renovation plans and specifications
- Undergo a property appraisal
Approval for renovation loans involves two key components: borrower eligibility and project approval.
Ultimately, choosing between a renovation loan, personal loan, or a combination of both depends on your financial situation and renovation goals. Carefully review all the factors discussed and select the financing option that best suits your needs.
Should You Choose a Renovation Loan or a Personal Loan?
✅ Choose a Renovation Loan if:
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Your renovation budget is below S$30,000
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You’re only paying for permanent renovation works (e.g., wiring, tiling, plumbing)
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You want lower interest rates (monthly rest rate)
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You already have a contractor and renovation plan ready
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You’re okay with funds being disbursed directly to the contractor
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You meet the basic income eligibility (S$24,000/year)
✅ Choose a Personal Loan if:
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Your renovation project exceeds S$30,000
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You need to cover furniture, appliances, or other non-permanent items
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You want more flexibility in how funds are used
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You prefer to manage the money yourself instead of direct contractor payment
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You qualify for higher loan amounts (S$60K–S$90K+ income depending on lender)
| Category | Renovation Loan | Personal Loan |
|---|---|---|
| Loan Amount | S$15,000 to S$30,000 | From S$1,000; up to 6–10× monthly income (varies by lender) |
| Coverage | Only for permanent renovation works (e.g., tiling, wiring). Not for furniture or appliances. | No restrictions. Can be used for renovation or any other purpose. |
| Interest Rates | Quoted in monthly rest rate (lower effective interest) | Quoted in flat rate (higher effective interest) |
| Loan Tenure | 1 to 5 years | 1 to 7 years |
| Fees & Charges | Up to 1.25% admin/processing fee; additional charges for prepayment & late payment | 1.5% to 4%+ admin/processing fee; additional charges for prepayment & late payment |
| Accessibility | Limited – only offered by selected banks and moneylenders | Widely available through most banks and licensed moneylenders |
| Eligibility |
|
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| Usage Control | Strict – disbursed directly to contractor | Flexible – borrower controls the disbursement |
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