Best Renovation Loan Singapore: How to Get It

Asian man drilling wall for home renovation project funded using the best renovation loan in Singapore
Asian man drilling wall for home renovation project funded using the best renovation loan in Singapore

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What is a renovation loan and how does it work?

The best renovation loan in Singapore helps you to get your dream home by providing funds to pay for your home’s renovation works.

To ensure that borrowers do not misuse funds from the renovation loan for other purposes, the approved loan amount is disbursed directly to the renovation contractors in the form of a cashier’s order.

In case you are wondering, there is no need to borrow the entire amount required for your home renovation project. If your savings are inadequate or if you simply require more liquidity for investments or other expenses, a renovation loan can supplement the shortfall in funds.

The best renovation loan in Singapore is flexible in that it offers loan tenures ranging from 1 to 5 years. Also, it usually has lower interest than personal loans. However, do note that the eligibility criteria are stricter than personal loans. The applicant must be the homeowner or a family member of the homeowner.

What can renovation loans be used to pay for?

The best renovation loan in Singapore can only be used to pay for renovation works, including:

  • Flooring and tiling
  • Basic bathroom fittings
  • Painting and redecorating works (e.g. wallpaper)
  • Built-in cabinets, carpentry works
  • Electrical and wiring works
  • Structural alterations
  • External works within the compounds of your house, such as the balcony, roof, etc.
  • Installation of solar panels

What cannot be paid for with a renovation loan?

As a renovation is strictly meant for renovation works, you cannot use the funds to pay for things like home appliances, smart home features, bedding, artwork, curtains, furniture, crockery, and more. Should you require funds for home furnishing or other household items, you can consider a personal loan or even a balance transfer.

How much do home renovations cost?

Home renovations in Singapore typically cost anything from S$20,000 to S$80,000. That said, don’t be surprised if you come across home renovations that cost more than S$100,000 or even S$200,000! Although the sky is the (figurative) limit, do come up with a budget and stick to it. Remember, renovation is just one of the many costs you’ll have to bear as a homeowner.

The actual cost of your home renovation is dependent on several factors. These include the extent of the renovation work required, the amount of built-in carpentry work needed, whether you’re hacking away walls and floors, and how big your home is.

The materials that you choose, how big your home is, and who your renovation contractor and interior designer play a part in determining the cost as well.

It is wise to consider your wants and needs when it comes to your home renovation project. Balance both by prioritising the non-negotiables, being open to alternative materials, and compromising on certain design features if money is an issue.

What should you look out for in a renovation loan?

When choosing a renovation loan in Singapore, this is what you need to look out for:

  • Interest rate
  • Processing fees
  • Ongoing promotions
  • The minimum and maximum loan amount you can borrow
  • Late payment fees
  • Early repayment fees
  • Cancellation fees

If you have ever taken on other types of loans or have considered doing so, then you’ve probably seen these important criteria before.

Who offers the best renovation loan in Singapore?

Almost every bank in Singapore offers a renovation loan, including DBS and OCBC. To get the best renovation loan in Singapore, you’ll need to take the time to carefully research and determine which bank’s options fit your needs best. For example, DBS alone offers two different types of renovation loans, depending on whether your renovation is eco-friendly.

Alternatively, you can look towards licensed money lenders if you’re looking for a renovation loan in Singapore. These companies offer a wide range of loan options and each loan quote is tailored to the applicant’s financial capabilities and needs.

What is the maximum loan amount I can take on?

The maximum amount that you can borrow for a home renovation loan in Singapore is usually capped at 6 times your monthly salary or S$30,000, whichever is lower. For example, if you earn S$6,000 a month, you can only borrow a maximum of S$30,000 instead of S$36,000 (6x your monthly income).

Additionally, the maximum loan tenure for renovation loans in Singapore is usually capped at five years (60 months).

Can I pay off renovation loans with my CPF funds?

No, you cannot pay renovation loans with your CPF funds. This is identical to the terms and conditions for almost every loan locally, apart from HDB’s Housing Loan.

Who is eligible to apply for a renovation loan?

You can apply for a renovation loan so long as you are a Singapore Citizen or Singapore Permanent Resident between the age of 21-65 years old, with a minimum annual income of S$24,000. If your family member would like to chip in as a joint applicant, most banks would subject them to a minimum annual income requirement as well, albeit a much lower one.

What are the documents required for a renovation loan application in Singapore?

  • NRIC
  • Latest IRAS Notice of Assessment
  • Latest payslips (1-3 months)
  • CPF contribution history statement (3-12 months)
  • Original quotation from the contractor, duly signed by the applicant(s) and contractor
  • Proof of ownership of the property to be renovated

Why does the monthly repayment for renovation loans reduce with time (as compared to personal loans)?

Renovation loans have interest charges that are calculated based on the outstanding balance of the loan. As you make your monthly repayments, your outstanding balance falls. This is the reason why your monthly repayment for renovation loans reduces with time. On the other hand, personal loans work slightly differently, where you repay a fixed amount every month.

MM Credit, a licensed money lender in Singapore, offers renovation loans that are easy to apply for at competitive interest rates. The application process is both quick and secure, and your data and privacy are protected with utmost integrity thanks to our SSL-encrypted website.

To apply for a renovation loan, simply fill out this online form with your name, phone number, and required loan amount. Our friendly loan specialist will contact you with a personalised quotation.


The information contained on this website is not intended as a substitute for advice from a licensed professional. We do not guarantee the accuracy, completeness, suitability, or validity of any information provided on this website. We will not be responsible for any errors or omissions on the site nor will we be liable for any loss or damage caused by reliance on any information obtained through this website.

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