Best Renovation Loans 2020

To help you find the best renovation loan your home improvement project, we've reviewed and analysed the best loans from all of Singapore's top lenders. Below, we highlight the most affordable loans based on your preference of loan amount and tenure.

Cost Comparison of Renovation Loans by Bank

There are many renovation loans available in Singapore. Below, we compare the cost of these loans. We assume that a borrower takes out a renovation loan of S$15,000 over 5 years, and that they do not qualify for preferential rates for returning customers (i.e. they do not already have home loans from a certain bank).

Comparing total cost of home renovation loans from major banks in Singapore, assuming a loan of S$15,000 over 3 years
Cost of Home Renovation Loan in Singapore

Best Renovation Loan Promotion: Maybank Renovation Loan

Consider this if you require a large renovation loan and will apply online

Maximum Principal 6x Monthly Income or S$30,000
Rest Rate 4.33%
Cashier Fee 1st free, S$5/each after deducted from loan proceeds

Maybank's competitive interest rates, low fee (1%) and current promotion (S$100 in shopping vouchers to online applicants) make it a good option for those that seek a larger renovation loan. First, Maybank's interest rate of 4.33% is among the lowest available for loans of 3-5 years, making it a good fit for larger loans.The bank also offers dramatically lower rates if you already have a home loan with Maybank. For existing home loan customers, Maybank will reduce the interest rate from 4.33% to 2.88%, which is the lowest in the market.

Read Our Full Review

MaturityProcessing FeeInterest Rate (Rest Rate)Monthly InstalmentTotal Cost
1 Year1%4.33%$1,280S$504
2 Years1%4.33%S$654S$836
3 Years1%4.33%S$445S$1,172
4 Years1%4.33%S$341S$1,513
5 Years1%4.33%S$278S$1,859
*Assuming loan of S$15,000

Cheapest Short-Term Renovation Loan: CIMB Renovation Loan

Consider this if you require a small renovation loan that you can repay in 3 years or less

Maximum Principal 6x Monthly Income or S$30,000
Rest Rate 2.98%
Cashier Fee 3 free, S$10/each after

CIMB’s Renovation Loan is one of the best options in Singapore because it charges the lowest interest rates and processing fees for short-term loans. Not only that, CIMB also requires an annual income of only S$24,000 to qualify for the loan, while most other banks require an annual income of at least S$30,000. While the bank does not offer loans of less than S$10,000 or the best rates for longer tenured loans, it's competitive interest rates make it worth considering for those that seek the lowest total cost of financing their renovation.

Read Our Full Review

MaturityProcessing FeeInterest Rate (Rest Rate)Monthly InstalmentTotal Cost
1 Year1%2.98%S$1,270S$393
2 Years1%3.87%S$651S$762
3 Years1%4.18%S$444S$1,136
4 Years1%4.34%S$341S$1,517
5 Years1%4.44%S$279S$1,904
*Assuming loan of S$15,000

Best Large, Long-Term Renovation Loans: DBS Renovation Loan

Consider this if you seek a large renovation loan with a tenure of 4 or 5 years

Maximum Principal 6x Monthly Income or S$30,000
Rest Rate 3.88%
Cashier Fee Free 1st, S$5 fee after, max 4

DBS offers some of the most affordable renovation loans for longer-tenures, due to its low interest rate of 3.88% p.a. This makes it worth considering for those that will require a larger renovation loan or would prefer to spread out the total cost of their loan over a longer period of time. With that said, DBS charges higher than average fees (1% handling fee + 1% insurance premium) and does not offer the best short-term rates. Therefore, those who need a smaller renovation loan would be better off choosing a different lender.

Read Our Full Review

MaturityProcessing FeeInterest Rate (Rest Rate)Monthly InstalmentTotal Cost
1 Year2%3.88%S$1,276S$617
2 Years2%3.88%S$614S$914
3 Years2%3.88%S$442S$1,214
4 Years2%3.88%S$338S$1,518
5 Years2%3.88%S$275S$1,826
*Assuming loan of S$15,000

Best Personal Loans for Large Scale Renovation Projects

For those seeking to completely remodel their home, a renovation loan of S$30,000 may not be enough to cover the full cost of a renovation. For these individuals, it would be prudent to consider a personal loan. However, individuals seeking a loan of S$30,000 or less will save money with renovation loans, which typically charge lower interest rates compared to personal loans.

Best Personal Loan for Home Renovations: HSBC Personal Loan

Consider this if you seek the best personal loan rates for your large renovation project

Eligibility S$30,000 of annual income (S$40,000 for foreigners & non-salaried employees)
Max. Loan Amount 4x monthly salary for income S$30,000 to S$120,000; 8x monthly salary for income > S$120,000; S$200,000 Maximum Loan Size (2x monthly salary for foreigners)
Min. Loan Amount S$5,000
Processing Fee S$88, waived for online applicants
Approval Time 1 minute approval, receive cash in one business day
Loan DurationFlat RateProcessing FeeEffective Interest RateMonthly InstalmentTotal Cost
1 year3.8%S$07%S$865.00S$272
2 years3.7%S$07%S$447.50S$632
3 years3.7%S$07%S$308.61S$1,002
4 years3.7%S$07%S$239.17S$1,372
5 years3.8%S$07%S$198.33S$1,792
6 years3.8%S$07%S$170.56S$2,172
7 years3.8%S$07%S$150.71S$2,552
*Assuming S$10,000 loan and income of S$30,000; includes processing waiver & online cashback

HSBC's offers the most affordable personal loans for most consumers. For instance, the bank's effective interest rate of 7% p.a. is the best available. Additionally, the bank tends to offer competitive promotions. The bank is also ideal for those that need a large loan for their renovation project because it is the only bank to offer 7-year loans. This assists homeowners that prefer to spread out the total cost of their loan over several years. Finally, HSBC is a great option for expats and other foreigners residing in Singapore, as its income requirement for these consumers is lower than those of other banks (S$40,000).

  • Current Promotions:
  • S$108 cashback for online applicants
  • Processing fee waived (S$88)
  • Read Our Full Review

Best Personal Loan Promotion for Home Renovations: POSB/DBS Personal Loans

Consider this if you are eligible POSB's low rates and cashback promotion

Eligibility S$20,000 of annual income
Max. Loan Amount 4x monthly salary; 10x monthly salary for income > S$120,000
Min. Loan Amount S$500
Processing Fee 1% of loan principal, waived for loans of more than S$30,000
Approval Time Immediate approval & disbursement for DBS & POSB credit card or line of credit customers
Loan DurationFlat RateFeeEffective Interest RateMonthly PaymentTotal Cost
1 year3.88%1%7.56%S$865.67S$220
2 years3.88%1%7.56%S$449.00S$608
3 years3.88%1%7.56%S$310.11S$996
4 years3.88%1%7.56%S$240.67S$1,384
5 years3.88%1%7.56%S$199.00S$1,772
*Assuming loan of S$10,000, total cost includes cashback promotion (assuming new-to-bank customer)

POSB and DBS are currently offering the best personal loan promotion. New-to-bank customers are eligible for up to S$1,088 in cashback, which can greatly reduce the cost of your renovation project. Additionally, the banks' offer rates from 3.88% (EIR 7.56%), which are very competitive.

Note: The interest rate and processing fee offered to you is based on your personal credit and income profile. It may differ from the published rate and the rate offered to other borrowers.

  • Current Promotions:
  • Up to S$888 cashback for existing bank customers
  • Up to S$1,088 cashback for new customers
  • Read Our Full Review

Best Personal Loan Fee Waiver Promotion: Standard Chartered CashOne

Consider this if seek a large personal loan for your renovation

Eligibility S$30,000 of annual income (S$60,000 for foreigners)
Max. Loan Amount 2x monthly salary for annual income below S$30,000; 4x monthly salary for annual income > S$30,000; 8x monthly income for annual income above S$120,000 (up to S$250,000)
Min. Loan Amount S$1,000
Processing Fee S$199 for 1st year (waived for online application), S$50 for subsequent years (waived for borrowers who make repayments on time)
Approval Time 1 day
Loan DurationFlat RateFeeEIRMonthly InstallmentTotal Cost
1 year3.88%S$07.76%S$866S$388
2 years3.88%S$07.76%S$449S$776
3 years3.88%S$07.76%S$310S$1,164
4 years3.88%S$07.76%S$241S$1,552
5 years3.88%S$07.76%S$199S$1,940
*Assuming a S$10,000 loan and annual income of S$30,000; includes fee waiver

Standard Chartered's personal loans typically charge competitive interest rates (from 3.88% p.a. (7.56% EIR)) and offer attractive promotions. For those that qualify for both the low rates and cashback promotion, the CashOne loan can be a great way to finance a large scale renovation.

  • Current Promotions:
  • Free Apple AirPods + Charging Case (worth S$239) (min. loan of $10,000)
  • S$160 cashback (min. loan S$20,000)
  • Processing fee waived (S$199)
  • Read Our Full Review

Renovation Loan From Your Mortgage Lender

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Button\" data-eventlabel=\"DBS Renovation Loan\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"DBS Renovation Loan\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.sg%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.dbs.com.sg%252Fpersonal%252Flanding%252Floans%252Fhomeloans%252Frenovation-loan.html%2523monthly_repayment\"\u003ECheck Rates \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E"],"offsetPercentage":20}

If you already have taken out a home loan from a bank, we recommend getting your renovation loan from the same bank. This is because banks provide a lower interest rates to those who get both a home loan and a renovation loan from the same bank. Doing so can also benefit you by reducing the complexity of managing multiple bills from different parties every month. Banks typically offer 25-50% cheaper rates to these customers. For instance, Maybank's interest rate declines from 4.33% to 2.88% for their home loan customers, while DBS and POSB’s interest rates decline from 3.88% to 2.88% for their home loan customers. For most loans, this translates to savings of hundreds of dollars. Please see the below table for a detailed analysis.

Total Cost by Maturity for Maybank Renovation (S$15,000)New CustomersHome Loan CustomersDifference In Cost
1 YearS$504S$385S$119
2 YearsS$836S$604S$232
3 YearsS$1,172S$825S$347
4 YearsS$1,513S$1,049S$465
5 YearsS$1,859S$1,274S$585

Summary of Best Renovation Loans in 2020

When shopping for a renovation loan, the primary factor you should consider is the overall cost of the loan. This includes both the processing fee and the interest expense. Above, we have compiled all the renovation loan offerings from major lenders in Singapore by cost. To calculate the total cost, we assume a loan of S$15,000 over 5 years for a borrower that makes at least S$30,000 of annual income. Given that home renovations cost S$55,000 on average, this loan would cover about 25% of the total cost of your home remodeling.

Renovation LoanFeeInterest (Rest Rate)Monthly PaymentTotal Cost
Maybank Renovation Loan1%4.33%S$278S$1,859
CIMB Renovation Loan1.0%4.44%S$279S$1,904
DBS/POSB Renovation Loan2.0%3.88%S$275S$1,826
OCBC Renovation Loan1% + S$2004.98%S$286S$2,491
RHB Renovation Loan1.0%5.80%S$289S$2,466
William Hofmann

William is a Senior Research Analyst at ValueChampion Singapore, focusing on banking and SMEs. He previously was an Economic Consultant at Industrial Economics Inc.

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