Are you about to move into a new home and have chosen the best interior designer with whom you want to collaborate? Or have you been working at home for too long and are considering remodeling your house to give it a fresh look? In both circumstances, the next question is, “Can you afford the remodeling costs?”
A conventional four-room HDB will cost roughly S$50,000 to renovate, excluding furnishings and appliances. Few individuals can immediately withdraw a vast amount of money to spend on improvements. They would usually consider acquiring a remodeling loan in Singapore from a financial institution or a certified moneylender to stretch out the expense.
Worry no longer if you are unclear about where to hunt for the most OK remodeling loan for you. We’ve compiled a list of Singapore’s top 5 renovation loans to help you save money.
What is a Renovation Loan?
A home renovation loan singapore gives homeowners the funds they need to repair their houses. It is an unsecured loan, meaning no collateral is required to obtain it. Taking a home remodeling loan in Singapore will not put your property in danger.
It is critical to distinguish between a home renovation loan and home equity or refinancing loan. These loans are more mortgage-loan orientated, which means they take longer to repay, have higher interest rates, and are not open-ended. Furthermore, they are more challenging to get than home improvement loans.
Before obtaining the most acceptable renovation loan in Singapore in 2022, banks ask you to be detailed about the desired maintenance project. For example, do you want to repaint the home, repair the roof, rework the electrical system, or add additional extensions or plumbing lines? The amount you may borrow for remodeling work differs from one loan source to the next, so it’s a good idea to shop around.
Factors to Consider When Choosing a Renovation Loan
If you wish to apply for a remodeling loan, you should treat it like any other loan, which means that the payback process begins after you get the loan. Here are the essential factors to consider while looking for the most acceptable remodeling loan in Singapore.
When applying for a loan, one of your key considerations should always be the cost of borrowing. Naturally, a higher interest rate and fees may result in a more significant monthly payback rate and total cost, so choosing a low-interest package is critical.
Varying moneylenders will provide different maximum and minimum allowed loan amounts. Thus this must also be considered. In most circumstances, the maximum loan amount is six times your monthly earnings (subject to legal requirements).
Fees and costs
In Singapore, renovation loans or personal loan are seldom fee-free. When you apply for a remodeling loan, it is pretty unusual for money lenders to impose a processing fee. When a renovation loan is approved, the processing costs should be less than 10% of the loan principle.
If you do not make the payment on time, you may be charged 4% per month in late interest and a cost of up to $60 for each month of late repayment.
With dozens of home loan and renovation loan providers on the market, borrowers can permanently save money by shopping around. For example, DBS’s renovation loan has a great interest rate for two years. Still, licensed money lenders might be offering better overall deals. Also, it’s not uncommon for money lenders to slash their rates and provide one-off discounts, so it always pays to shop around.
Reviews and Feedback
Another helpful tip for identifying a good loan provider in the market for the most acceptable renovation loan in Singapore is to read the many feedbacks and reviews supplied by that brand’s current clients.
By reading these evaluations, individuals tend to obtain a perspective on the benefits and downsides of financial institutions and how the loan has benefited them with home improvements. This will aid them in deciding whether or not to work with them.
Excellent Customer Service
The brand’s customer service towards people is another indicator that may be utilized to distinguish between excellent and poor financial organizations.
Every client’s concern is handled correctly, professionally, and swiftly if a bank or financial institution offers excellent customer service.
Multiple communication media are one of the components of successful customer service. Phone lines or live chat on the website or information pages that assist customers in comprehending the many benefits offered by the organization, an attractive layout, and the inclusion of demonstration films to make the whole process more straightforward for the consumer are examples.
5 BEST RENOVATION LOANS IN SINGAPORE
DBS Renovation Loan
The only difference between DBS’s Renovation Loan and the others on our list is that its interest rates are among the lowest on the island. This is why we feel DBS is one of the top banks in Singapore for renovation loans.
To be eligible for this loan, you must be at least 21 years old and earn at least S$30,000 per year. In terms of wages, qualifying consumers may borrow up to six times their monthly pay, which isn’t bad considering other banks offer lower rates.
The interest rate will be somewhat higher in the first year but gradually fall as you conclude your loan’s term. Furthermore, you may choose how long the loan will last, enabling you to manage your spending for the following years.
Finding the correct lender and monitoring the status of your application are two of the most challenging aspects of obtaining a home renovation loan in Singapore. Fortunately, Lendela takes care of such issues, guaranteeing that your loan is approved and handled as quickly as possible.
Lendela takes pride in its innovative Fintech platform, enabling customers to locate the best loan options quickly. Transparency is essential to their services, as they guarantee that you are kept up to date on any potential offers from their connected lenders.
They will ensure that you understand all of your options and that you also wind up with a loan that fits your lifestyle and budget. Whatever form of loan you want, and if you’re still wondering which bank is ideal for a renovation loan in Singapore, Lendela will locate it for you.
OCBC Renovation Loan
The OCBC Renovation Loan has the most straightforward application and approval procedure of any option on our list. All you have to do is get a contractor’s quote, apply for an OCBC renovation loan, and then wait for your application to be approved – it’s that easy!
Furthermore, you only have to return the loan on the first of the month, which is ideal for those who get their paychecks at the end of the month. After comparing renovation loans in Singapore, we noticed that it is also one of the most OK renovation loans on the island, with cheap and fair interest rates.
Suppose you’re concerned about the loan limit. In that case, you may only borrow 6 times your monthly salary, slightly less than what other banks provide. However, for most clients, its flexible financing makes up for it. Inquire about their renovation loan calculator in Singapore, which they provide to their consumers.
Above all, the loan will be sent to your account one day after approval, which is far quicker than most remodeling bank loans in Singapore.
POSB Renovation Loan
If you’re seeking a home remodeling loan in Singapore with no onerous conditions, POSB’s Renovation Loan is an excellent choice. You may qualify for this remodeling loan if you earn less than S$24,000 yearly.
We consider it one of Singapore’s most acceptable remodeling loans because of its cheap interest rates, coverage, and flexible repayment plan. Clients may also specify how long they wish to repay the loan.
If you already have a loan, your interest rate is 2.88% p.a. Meanwhile, if you’re a new client, your rate will begin at 3.88% p.a.
While most bank renovation loans have limited coverage, POSB renovation loans cover the following: electrical and wiring work, built-in cabinets, flooring and tiling, and many other things. In terms of breadth of coverage, it is Singapore’s most acceptable renovation loan.
Renovation Loan from Maybank
If you want a remodeling loan covering the complete renovation, go to Maybank. It may be necessary to request a significantly bigger loan, but don’t fret since Maybank provides competitive interest rates and longer loan terms.
Suppose you were a Maybank customer before applying for a remodeling loan. In that case, your interest rate is substantially lower than new clients. Furthermore, if you make less than S$30,000 per month, you may apply for a remodeling loan six times your monthly salary.
Furthermore, it is regarded as one of Singapore’s most acceptable remodeling loans, owing to its simple approval process. To get accepted, you only need to submit essential and straightforward prerequisites.
We believe it is the best bank to seek money for a refurbishment since it respects its clients’ financial situations. You should be aware of this if you are seeking the most flexible and affordable renovation loans in Singapore.
Finding the correct loan provider for your loan is an essential step in the whole process. However, we suggest you try some of the services the businesses listed above have since they are among the finest in obtaining the best renovation loan in Singapore.
When looking for the best renovation loan in Singapore, we recommend that the applicant thoroughly evaluate and contrast the interest rates, loan amount, monthly income, cost, processing charge, application procedure, and necessary documents.