Home Renovation Loan
What is a home renovation loan?
A loan that homeowners can apply for if they need money specifically to fund their home renovation project. In Singapore, banks, financial institutions or licensed moneylenders offer these loans to homeowners who need funds for upgrades such as flooring, painting, electrical work, plumbing or kitchen remodeling.
What are the benefits of a home renovation loan?
The main benefit of a home renovation loan is that it provides you with the funds to make your dream home a reality. Considering that home renovations in Singapore typically cost anything from $20,000 to $70,000 — depending on the extent of work required, materials, the size of your home, your contractor and interior designer etc — a home renovation loan could come in handy if you are short on cash savings.
Getting a home renovation loan may or may not be something that’s right for you, everyone’s different and have different priorities. If you just need some extra funds for the renovation and are sure you can pay off your loan in time according to your repayment schedule, why not consider beautifying your home or doing what it takes to make your home more livable and inviting while you are at it?
How do these loans work?
- Home renovation loans usually have lower interest rates compared to personal loans. With home renovation loans, the loan tenures range between 1 and 5 years. You will have to make monthly repayments to pay off your loan over time.
- Your monthly repayment for your renovation loan reduces with time compared to personal loans because a renovation loan has interest rates that are calculated based on the outstanding balance of the loan.
- To make sure that borrowers do not misuse the renovation loan, when their application for the renovation loan is approved, the approved loan amount will be disbursed directly to the renovation contractors in the form of a cashier’s order.
*terms and conditions apply
What can you use renovation loan for?
You can use a renovation loan in Singapore to cover costs for flooring and tiling, painting and redecorating (e.g., wallpaper), carpentry work and built-in cabinets, electrical and wiring works, basic bathroom fittings, structural alterations, external renovations such as the roof, balcony, backyard or front porch.
Bear in mind that a renovation loan is strictly for renovation works. You cannot use this loan for anything beyond renovation purposes. This means that you cannot use the funds to pay for things like furniture, tables, household appliances, curtains, mattresses, sofas, chairs, fittings, decorative accessories, plants, artwork, smart home features etc. In short, a renovation loan strictly covers renovation works only.
Eligibility & Fees
- You have to be a Singapore Citizen or Permanent Resident aged between 21-65 years old. You have to be making a minimum annual salary of at least $24,000. The maximum amount you can borrow for a home renovation loan is typically 6X your monthly salary of $30,000, whichever is lower.
- When choosing a renovation loan, consider factors like interest rate, the minimum/ maximum loan amount you can borrow, processing fees, late payment fees, early repayment fees, cancellation fees or other charges and ongoing promotions.
Required Documents
- Your NRIC, latest IRAS Notice of Assessment, latest payslips (1-3 months), CPF contribution history statement (3-12 months), original quotation from contractor, duly signed by applicant(s) and contractor, proof of property ownership to be renovated.
*terms and conditions apply
FAQs on Renovation Loans
We understand that customers may have questions about renovation loans in Singapore so we’ve provided this FAQs for your convenience.
What is the maximum amount I can borrow with a renovation loan?
Following Ministry of Law guidelines, licensed moneylenders in Singapore can offer loans up to six times your monthly income.
Contact us at 6255 6998, message us on WhatsApp or visit our office for more information.
What are the eligibility criteria for applying a renovation loan in Singapore?
To qualify for a renovation loan, please review the following criteria:
- Must be at least 21 years old
- Must be a Singaporean, Permanent Residents (PRs) or a Foreigner with a valid work permit (such as an Employment Pass, S Pass or other long-term visa).
- Must be able to provide proof of employment or self-employment.
Can I apply a loan from KBB Credit if I have existing loans with other moneylenders?
Yes, you can apply for a renovation loan using our online application form here. We’ll review your eligibility and advise on the loan amount via phone, WhatsApp or email. After submitting the form, please stay tuned—we’ll get back to you within an hour. Don’t hesitate to reach out; we’re here to assist with any financial concerns.