A Guide To Getting A Home Renovation Loan In Singapore

A Guide To Getting A Home Renovation Loan In Singapore

You are one of the happiest people right now because you’ve bought a new house for yourself and your family. But now, you want to renovate and repair some areas in your new house. The problem is that you don’t have enough budget to do that since you probably spent all you have on your home loan. But, if you’re already done with the payments for your new house, then it is the best start to take on a renovation loan. Singapore has some of the best renovations loans available in the market, and it will help ease anyone looking to improve their homes. Maybank Renovation Loan, DBS Renovation Loan are just some of the best renovation loans in order to facilitate new home renovations in addition to a home loan financing. Some like the DBS renovation loan might even offer cheaper interest, higher maximum loan borrowing or monthly repayment for their loan customers. Renovation loans have a lot of purposes, so you can use it for painting your walls, for new floorings and tiles, for fixing electrical wirings, for fixing fences, for changing roofs, etc. Now if you’ve already experienced getting a personal loan, then you’ll see the difference with renovation loans when it comes to the interest rate because renovation loans have lower interest rates. So if you will get a renovation loan then make sure that you are capable of repaying the loan amount and you’re eligible for it. 

Calculating Budget

How much could be the average cost for house renovations in Singapore?

Before you start renovating your home, you might want to consider some of these things if you want to know the estimated cost for renovations. Because the answer will depend on what specific repair you want to be done in your home, the size of the area, the materials, and labor costs. For basic renovations, the cost will range from around $4,000 up to $100,000 depending on the areas of your home you want to work on which will fall for an average cost of $50,000. 

Pros and Cons

What are the Pros and Cons of Getting a Home Renovation Loan?

Home renovation could increase the value of your property, in fact, if you’re planning to sell it after the renovation then it could be easier for your part especially if the design is really nice and all areas have no damages. Houses in Singapore are quite expensive, so if you already bought a new home then taking on some renovations is a way to achieve your dream house.  In fact, renovations are not just for making your house look more appealing and it’s not all about designs sometimes. Renovation is a way also to secure your home and your family’s safety. Just like when there are leaks in the kitchen sink, damaged roof, electrical problems, cracks on the wall, and other damages in your home are some of the reasons why you have to renovate your home. These are some of the things that you can benefit from home renovation. So what about the things that a home renovation cannot do for you? Or what you can’t benefit from? Here’s the other side, once your home value increases because of renovation, then expect also that the taxes you need to pay will increase. Renovating your new house will only cost you more if you just want to add extra designs on it. So it is not practical to do renovations unless necessary. Renovation takes time to be done accordingly, and it should be done mostly by professional tradesmen. It is not recommended for you to DIY renovations just to save up from costs unless you are fully aware and knowledgeable on the proper procedures for the specific renovation you want. Renovation Loan is a type of loan that is given to those who don’t have enough budget to repair and renovate their home. It has a lower interest rate than personal loans and you have to comply of course with the requirements needed in order to be eligible for the loan. Getting a renovation loan is a great idea, but it will not help you cope with your finances especially if you just bought a new house and have a home loan as well. The monthly repayment of the loan amount you are seeking must, therefore, be something you can repay as well. If you’re planning for a renovation loan, then you have to know that not all banks can offer a renovation loan. Also, you have to be patient because the process for the approval of a renovation loan takes longer than the usual loans offered by lenders. In addition, you really have to prove why you need a lot of funds for renovation and how it will affect the value of your home. Therefore, your renovation loan should help to increase the value of your home and not be able to spend on something else.

know your purpose - Darts

Options to choose from when it comes to Home Renovation

Renovation can be beneficial in so many ways. So you have to decide carefully on how you’re going to manage your finances and budget the costs for renovation. However, renovating your home could be more expensive than buying a new house. So you might realize that it will be better to buy a new house rather than renovating your old house which will cost more. So to come up with a better idea and to help you decide on what you should take when it comes to Home Renovation, then here are some of what we can suggest to you.
  • Stick within your budget

    – this is very important because if you will not follow your budget for the renovation then you’ll surely end up having difficulties in managing your finances.
  • Ask for a consultation

    – it will be a huge help to ask an expert on how you should start your renovation or whether you really need it or just consider buying a new house instead where you might save more money.
  • Know your purpose of getting a renovation loan

    – renovation loans can be used for various reasons such as for reselling your property, maintaining your home’s appearance, and for you to achieve your dream house look. Remember that you can only use your renovation loan strictly for renovation so you have to justify your needs and costs for the process in order for you to obtain the loan.
Wallet

Where can I get funds for my Home Renovation?

If your budget is insufficient to start your home renovation and you’re wondering if where can you possibly get some extra funds, then here’s an idea for you:
  • Banks

    –  you can apply for a Home Renovation Loan with the nearest bank in your area, just like any other loans, the process may take longer because they are very strict invalidating your data and your eligibility for the loan.
  • Credit Card

    – for a credit card, you can swipe it up when buying items or materials needed for your house renovation, just make sure that you will not leave any debt on your credit card because who wants to pay high-interest rates anyway?
  • Moneylenders

    – when you surf on the internet, you’ll see a lot of online lenders who are offering loans to people who need cash instantly and those who have bad credits too or no credit history. The interest rates for home renovation loans will vary depending on the lender’s offer, so choose wisely to get the best deals and offers from money lenders. You can check A1 Credit for personal loan offers. You can get the loan approval here for as fast as 30 minutes. You can apply here for walk-ins or via their website.

Summary

To sum it up, home renovations could be more expensive than buying a new house or the costs between these are just close enough. So better to decide what would be more practical to choose. But if you are sentimental and want to stay with your old house and just renovate it then it’s clearly up to you. Just make sure that your monthly income is enough to repay your home renovation loan in addition to the home loan you’ve taken out. No worries too when it comes to loan interest rate because most of the moneylenders offer lower interest rates than other loans. At the end of the day, it will always be worth it to have a home renovation if it will improve your home’s appearance and will make it more durable and stay for longer years. So don’t hesitate to get a renovation loan if it’s necessary especially when it comes to repairing damages in your home. Your safety is more important than the expenses you will pay in the future. 

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