Best Renovation Loans in Singapore 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

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 4.20%
Cashier Fee 1st free, S$5/each after deducted from loan proceeds

Maybank's competitive interest rates and low fee (0.75%) make it a good option for those that seek a larger renovation loan. First, Maybank's interest rate of 4.2% is among the lowest available for loans of 4-5 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 rates from 4.2% and 4.3% to 2.88%, which is the lowest in the market.

Read Our Full Review

MaturityProcessing FeeInterest Rate (Rest Rate)Monthly InstalmentTotal Cost
1 Year0.75%4.30%S$1,279S$464
2 Years0.75%4.30%S$653S$794
3 Years0.75%4.30%S$445S$1,128
4 Years0.75%4.20%S$340S$1,434
5 Years0.75%4.20%S$278S$1,769
*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 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:
  • Receive S$88 cashback + 5 x S$20 Grab Food Vouchers upon successful application for a min. S$20,000 instalment plan
  • Read Our Full Review

Instant Cash Disbursement: 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$488
2 years3.88%1%7.56%S$449.00S$876
3 years3.88%1%7.56%S$310.11S$1,264
4 years3.88%1%7.56%S$240.67S$1,652
5 years3.88%1%7.56%S$199.00S$2,040
*Assuming loan of S$10,000

POSB and DBS offer instant cash disbursement to approved online applicants for their personal loans. Additionally, the banks' offer rates from 3.88% (EIR 7.56%), which are very competitive. Therefore, if you require quick financing to get your renovation started, it is worth considering POSB or DBS.

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.

Best Moneylender Renovation Loan for Bad Credit: Friday Finance

Consider this if if you have bad credit and want a short-term, flexible renovation loan

Eligibility No min. salary; Must be SG citizen or PR who is either a Salaried Employee, Variable/Commission-based Employee or Self Employed
Max. Loan Amount 6x monthly salary
Processing Fee Starting from 2%; 50% refund if loan is paid off on time
Approval Time 1 day
TenureInterest RateAdmin FeeMonthly Repayment AmountTotal Cost
3 Months2%S$600S$5,201.32S$603.96
6 Months2%S$600S$2,677.89S$1,067.34
9 Months2%S$600S$1,837.73S$1,539.57
12 Months2%S$600S$1,418.39S$2,020.68
18 Months2%S$600S$1,000.53S$3,009.54
*Assuming loan of S$15,000

Friday Finance is a moneylender that provides personal loans that you can use for renovations, even if you have bad credit or low income. These loans are a good option for people who want to take out a short-term loan, as the max tenure is 18 months. Customers will pay between 1-3% in interest per month, depending on their specific circumstances. However, banks typically charge 3-6% annually, so they would be a better option for long-term renovation loans.

Customers who earn more than S$20,000 a year can take a loan out of up to 6x their monthly income, otherwise you have a loan cap of S$3,000. These renovation loans can be either secured or unsecured, with the latter being covered by their insurance policy at no cost to you. This means that your loan obligation will be reduced if you cannot pay back the loan due to an accident that resulted in your permanent/temporary disability or death. Furthermore, if you repay your loan on time, Friday Finance will refund you 50% of the administration fee.

Renovation Loan From Your Mortgage Lender

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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 Loan0.75%4.2%S$278S$1,769
CIMB Renovation Loan1.0%4.44%S$279S$1,904
DBS/POSB Renovation Loan2.0%3.88%S$275S$1,826
OCBC Renovation Loan1.5%4.18%S$277S$1,873
RHB Renovation Loan1.0%5.80%S$289S$2,466
William Hofmann

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

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