Renovation Loan Singapore

Home renovation loans are designed specifically to finance your home renovations. It is different from a home loan which is used to fund the purchase of your property and you can take it from a bank or the Housing Development Board (HDB).

A renovation loan is also different from a personal loan. With personal loans, you can use the funds for any expenses that will help your personal circumstances. As such, renovation loans come with certain restrictions on the types of enhancements you can use the funds to pay for.

In terms of interest rates, most banks offer promotional interest rates for existing home loan customers.

When you take up a home renovation loan with A1 Credit, you can borrow up to 6 times your monthly income if yearly earning is at least S$20,000. The loan tenure ranges from 6 to 12 months at interest rates between 1% to 4% per month.

The renovation loan can be used for:

• Electrical and wiring works
• Installation of built-in cabinets
• Flooring and tiling
• Bathroom fittings
• Painting and redecorating works
• Structural alterations
• External works within the compound of your property

Before you start shopping for the best renovation loan plan, consider these few tips:

• Get a quote from your contractor: Banks and licensed money lenders alike will require the contractor’s quotation and invoice when you apply for a renovation loan. Plus, by getting a quote, you will have an idea of how much you need to borrow. 
• Research and compare raw materials: Another way to keep your renovation loan low is to choose economical and practical raw materials instead of premium materials. For instance, instead of a luxurious marble kitchen top, you can choose to go for a Slate countertop.
• Renovate in stages: To lower the total loan amount and lower your monthly repayments, you can plan your renovations in stages. Start with the essentials, such as bathroom fittings or structural alterations. You can take your time to save up on subsequent renovation works, such as built-in cabinets, feature walls, and more.
• Can you afford to repay it? Understand the term of the loan, from its monthly repayment schedule, interest payments, loan amount, and other fees. Even when borrowing, working out a budget is necessary. Take note that loans should be within a borrower’s means. Avoid overspending and control your cashouts.
• Licensed moneylenders also always have you sign a contract: It must be a printed copy and include details on the interest rate, late payment fees, the loan repayment period, and all the necessary information.
• Verify if the moneylender is licensed by the Ministry of Law and is fully compliant with the Moneylenders Act, like A1 Credit. Remember that Singapore law requires licensed moneylenders to explain the terms of your renovation loan in a language clients can easily understand. Ensure you fully understand the terms of the contract, from the repayment schedule, renovation loan interest rate as well as other fees. 

Some of the best renovation loans offered by banks and other financial institutions have a maximum loan amount of 4x of monthly salary or 10x if the annual income is at least S$120,000.

Licensed moneylenders like A1 Credit lets you borrow up to 6 times your monthly income if you are earning an annual salary of at least S$20,000. Best of all, you can still take a renovation loan if your annual income is less than the said amount.

The amount of money you can loan varies depending on the legal requirement and qualifications. Here’s the list of loanable amount A1 Credit offers:

• Bridging Loan – SGD $5,000 to $200,000
• Business Loan – SGD $10,000 to $200,000
• Foreigner Loan – SGD $500 to $30,000
• Payday Loan – Up to one month worth of income
• Personal Loan – SGD $500 to $50,000

The home renovation costs will vary depending on a lot of factors. For instance, it will depend on the size and extent of the renovation required.

The average cost of renovating a 4-room resale HDB flat is approximately S$45,600. This cost includes the raw materials required as well as the labor required to complete the renovation project.

If money is an issue, take into account the raw materials used in your renovation process. Look for cheaper yet still high-quality alternatives. Aside from raw material costs, you can also consider completing parts of the renovation works (non-structural) yourself to save on labor.

While most banks and financial institutions require at least a day for renovation loan applications to be approved. Licensed money lenders, such as A1 Credit can assure you that you can get your cash as quickly as possible! You can get approval for your loan application within 30 minutes. However, it’s possible that we may ask for additional documents or information from you, which may affect the length of your loan approval time.

Established in 2009, A1 Credit has more than a decade of experience in the money lending business. We are licensed and regulated by the Ministry of Law and fully compliant with the Moneylenders Act. Fully recognized as one of the most reliable licensed moneylenders in Singapore, we ensure quality service for our clients.

We offer fast and hassle-free applications for your tailored loan packages. We also have a team of knowledgeable loan officers to help you with your financial struggles while ensuring a smooth transaction. Our three strongest points include low-interest rates, flexible payment plans, and fast cash loan disbursement.