CIMB Renovation Loan Review: Singapore's Cheapest Renovation Loan?

CIMB Renovation Loan Review: Singapore's Cheapest Renovation Loan?

CIMB's renovation loan is a great option for borrowers that seek a short-term renovation loan and do not currently have a home loan with another bank.

Good for

  • Individuals seeking a renovation loan of 1 to 3 years
  • Borrowers seeking flexible disbursement

Bad for

  • Individuals seeking a large renovation loan with a tenure of 4 to 5 years
  • Individuals seeking a renovation loan of less than S$5,000
  • Borrowers that currently have a home loan with another bank

Editor's Rating

4.5/5.0

The CIMB renovation loan is the cheapest short-term loan available to borrowers that do not currently have a home loan with another bank. For instance, it charges the lowest rates for 1 to 3 year loans and charges lower fees than its competitors.

Summary of CIMB's Renovation Loans
Lowest interest rates for 1 to 3 year renovation loans: 4.85% EIR
Low processing fee: 1%
Flexible disbursement: 3 free cashier orders

Table of Contents

What Makes CIMB's Renovation Loans Stand Out to Borrowers

CIMB offers the cheapest renovation loans with 1 to 3 year tenures due to its competitive rest rates, which range from 2.98% to 4.44%. The bank also charges lower introductory fees as it charges a processing fee of 1% and no administrative fee. Borrowers are also able to receive cash in flexible disbursement amounts because the bank offers up to 3 free cashier orders.

Total Cost of 3-Year, S$10,000 Home Renovation Loan

With that said, there are a few limitations of CIMB's renovation loans. First, borrowers that currently have a home loan with another bank may be offered lower renovation loan rates from their home lender than they would from CIMB. Additionally, CIMB's minimum renovation loan of S$10,000 is twice as high as many other lenders, which may be a deterrent for borrowers planning smaller home renovation projects. Finally, borrowers that seek longer renovation loans, either for more expensive projects or to spread out the cost over a longer duration, could find slightly lower rates and monthly payments from Maybank.

Summary of CIMB Renovation Loan Interest Rates

MaturityProcessing FeeInterest Rate (Rest Rate)Monthly InstalmentTotal Cost
1 Year1.0%2.98%S$1,270S$393
2 Years3.87%S$651S$762
3 Years4.18%S$444S$1,136
4 Years4.34%S$341S$1,517
5 Years4.44%S$279S$1,904
*Assuming loan of S$15,000, total cost includes impact of promotions and fees

Who Can Apply: Eligibility Criteria

Consider this if you require a renovation loan of 3 years of less

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

To be eligible for CIMB's renovation loan, applicants must be Singaporean's or Permanent Residents, age 21 to 50 with a minimum income of S$24,000. Borrowers must apply for a loan of at least S$10,000 and less than S$30,000 or 6 times their monthly income.

Other Charges and Fees

Unlike other renovation lenders, CIMB does not change an administrative fee. However, it does charge a 1% processing fee. The bank also charges a few standard fees, such as late payment, prepayment and cancellation fees. However, we advise that borrowers stick to their payment schedule to avoid these fees and keep their loan as inexpensive as possible.

FeeAmount
Processing Fee1%
Administrative FeeN/A
Cashier Order$10 per order (first 3 free)
Prepayment Fee1% of amount prepaid
Late Payment FeeS$80
Cancellation Fee1% of the loan amount cancelled

How to Apply: Application Process

Applicants must provide a completed application form, proof of identification and home ownership. Additionally CIMB requires proof of income. For salaried employees, this includes their latest Income Tax Notice of Assessment and either their latest 3 months computerised payslip or last 12 months CPF contribution history. Commission-based individuals must submit their latest 2 years of employer's commission statements or Income Tax Notice of Assessments. Finally, self-employed individuals must submit their latest 2 years of Income Tax Notice of Assessments

Other Required Documents:

  • Photocopy of NRIC (front and back)
  • Original contractor's contract/invoice duly signed by applicant and contractor
  • Proof of property ownership
  • Cable TV, internet or utility bills, any bank statements
  • Marriage certificate or birth certificates (for Principal and Joint applicants)

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