The next thing on your list after getting a mortgage loan for your house is remodeling. You might already be experiencing financial strain at this point and have taken some money out of your CPF to put a down payment on a new house. How then do you pay for the improvements for your brand-new home, which might easily cost between $10,000 and $100,000? loan for renovations. Let’s check the maximum renovation loan which you can get for home renovation. Read the complete article and get your answer.
How Much Money Do I Need For Renovation?
The look you’re going for will determine how subjective this is. You wouldn’t want to invest a lot of money in the apartment if you intend to sell it in a few years. But hey, you’ll still have to live there for the time being, so you’ll probably need to make a few small improvements.
Depending on the housing project, the OCS might range in price from $5,000 and above. For comparison, the OCS for my 4-room HDB BTO, which was finished in 2017, cost between $8,000 and $9,000, depending on the style of fitting you select.
If you intend to build a house with integrated woodwork, such as kitchen worktops and closet cupboards, floors covered in uniform tiles, and perhaps some electrical and wiring work completed. Prepare to budget at least $40,000 in advance (this is based on 4 room BTO reno prices which my friends have paid). For comparison’s sake, the remodeling work at my property cost more than $60,000.
Home Renovation Loans in Singapore
Here is a brief comparison of a few of the Singapore renovation loan programs that are offered. This is predicated on a $30,000 loan with a three-year term.
- CIMB Renovation i-Financing
Interest Rates 4.33%
Monthly Repayment $890.13
- OCBC Eco-care Renovation Loan Monthly Rest
Interest Rates 3.98%
Monthly Repayment $885.45
- OCBC Renovation Loan Monthly Rest
Interest Rates 4.18%
Monthly Repayment $888.12
- Maybank Renovation Loan Monthly Rest
Interest Rates 4.10%
Monthly Repayment $887.05
- DBS Green Renovation Loan
Interest Rates 3.88%
Monthly Repayment $881.46
- DBS Renovation Loan
Interest Rates 3.68%
Monthly Repayment $884.12
What Can I Use My Renovation Loan For?
Here is a list of possible uses for your home remodeling loan as a guide, just to be clear:
- Building and installing wardrobe cabinets and cupboards are examples of carpentry.
- Wiring and electricity
- Accessories like bathroom warmers
- Tilework and flooring
- Putting wall paint on
- Structural changes (like hacking down of walls to make certain living spaces larger)
- Work on the property’s exterior, such as roof or fences
How Much Renovation Loan Can I Get?
The most you can borrow for any of the mentioned home improvement loans is $30,000 or six times your monthly wage, whichever is less. Therefore, if we compare the $40,000 I budgeted for remodeling your Forever Home, you are actually $10,000 short. You can possibly also borrow that amount, but the interest rate will be significantly higher, and you need also be aware of your total debt servicing ratio.
Should I Take A Home Reno Loan?
For those of you who are gasping for air and wondering where you can find $40,000, particularly with a wedding and the down payment on a home to pay for,
Here is a brief overview of the numerous bank home remodeling loans now on the market:
|CIMB Renovation Loan||DBS Renovation Loan||Maybank Home Renovation Loan||OCBC Renovation Loan|
|Interest Rate||4.44%||2.88% for existing Home Loan customers
3.88% for new customers
|2.88% for existing Home Loan customers
4.33% for new customers
|4.98% for existing Home Loan customers
5.38% for new customers
|Loan Tenure||1 – 5 years||1 – 5 years||1 – 5 years||1 – 5 years|
|Processing Fee||1% of approved loan||1% of approved loan||1% of approved loan||$200|
|Loan Amount||Up to $30,000 or 6 times monthly salary, whichever is lower||Up to $30,000 or 6 times monthly salary, whichever is lower||Up to $30,000 or 6 times monthly salary, whichever is lower||Up to $30,000 or 6 times monthly salary, whichever is lower|
|Minimum Annual Income||$24,000||$24,000 (single)
Customers who already have a mortgage or house loan can get the lowest interest rate from DBS or Maybank at 2.88% p.a. DBS offers new clients the lowest interest rate of 3.88%. OCBC charges a $200 flat processing fee, whereas all other lenders charge 1% of the approved loan amount. DBS’s combined applications have a minimum income criterion of $12,000 per applicant.
n a good Idea? The cost of borrowing will always be there through interest rates, just like with any loan. The advantage of remodeling loans is that they have interest rates that are much lower than those of regular loans, making them a less expensive investment.
We make use of 3D rendering and animation
Elpis Interior offers full service, providing complete interior design from concept to completion. We work with clients in any stages, and have provided services to private and commercial sectors. At Elpis Interior we’re all about helping you visualize your space before it’s built, saving you money and time. We make use of 3D rendering and animation to show you exactly how your space will look, before it’s even built. Get your real renovation plan with our animation and 3D visualization by contacting us here.