Maybank Home Renovation Loan Review: Does it Fit Your Needs?
Maybank Home Renovation Loan Review: Does it Fit Your Needs?
ValueChampion Rating 
Pros
- Great long-term renovation loans
- Great renovation loan rates for existing customers
Cons
- Not the best rates for short term renovation loans
Maybank is one of the best options for long-term renovation loans as it offers inexpensive 4 and 5 year renovation loans in Singapore. It also offers the lower interest rates to its existing home loan customers and charges lower fees than its competitors. Finally, the bank is currently offering the best renovation loan promotion.
| Summary of Maybank's Home Renovation Loans |
|---|
| Cheapest 4 & 5 year renovation loans: 6.53% rest rate |
| Lowest interest rates for current home loan customers: 3.88% |
| Low minimum loan requirement: S$5,000 |
| Promotions:
|
Table of Contents
What Makes Maybank's Renovation Loans Stand Out to Borrowers
Maybank's home renovation loans are some of the best available to homeowners in Singapore. For durations of 4 or 5 years, Maybank's interest rate of 6.53% (Reno Loan Board rate less 4.32% p.a.) for new customers (Min 3 years tenure) is one of the lowest available. These longer durations are preferable to individuals that require the lowest monthly payment possible or those that are planning large or expensive home renovations. Additionally, Maybank charges lower and cashier fees (S$5, first is free) than other banks.
On the other hand, Maybank does not offer the least expensive short-term loans, while CIMB offers cheaper interest rates for 1 to 3 year renovation loans. Loans with shorter tenure might be preferable to homeowners that are able to pay larger monthly payments and prefer loans with the lowest total cost of borrowing.
Summary of Maybank's Home Renovation Loan Interest Rates
| Maturity | Processing Fee | Interest Rate (Rest Rate) | Monthly Instalment | Interest Cost |
|---|---|---|---|---|
| 1 Year | 1.25% | 6.93% | S$1,294.65 | S$535.84 |
| 2 Years | 1.25% | 6.93% | S$668.40 | S$1,041.53 |
| 3 Years | 1.25% | 6.53% | S$458.94 | S$1,557.84 |
| 4 Years | 1.25% | 6.53% | S$355.93 | S$2,084.73 |
| 5 Years | 1.25% | 6.53% | S$293.70 | S$2,622.18 |
| *Assuming loan of S$15,000 | ||||
In addition to its general renovation rates, Maybank's preferred rates offered to its current home loan customers are among the cheapest available. The bank charges rest rates of 3.88% and tenures of 1 to 5 years. Therefore, homeowners with mortgage loans from Maybank are also best suited with a renovation loan from the bank.
Summary of Maybank's Home Renovation Loan for Existing Home Loan Customers
| Maturity | Processing Fee | Interest Rate (Rest Rate) | Monthly Instalment | Interest Cost |
|---|---|---|---|---|
| 1 Year | 1.25% | 3.88% | S$1,276.43 | S$317.12 |
| 2 Years | 1.25% | 3.88% | S$650.57 | S$613.75 |
| 3 Years | 1.25% | 3.88% | S$442.06 | S$914.14 |
| 4 Years | 1.25% | 3.88% | S$337.88 | S$1,218.29 |
| 5 Years | 1.25% | 3.88% | S$275.44 | S$1,526.18 |
| *Assuming loan of S$15,000, total cost includes impact of promotions | ||||
Who Can Apply: Eligibility Criteria
Singaporeans and Permanent Residents of Singapore ages 21 to 55 are eligible to apply for Maybank's renovation loan. More specifically, borrowers must be 55 years or younger at the time of their loan's maturity. Additionally, applicants must earn annual income of at least S$30,000. Successful applicants are eligible for loans of S$5,000 to S$30,000 or 6 times their monthly income.
Other Charges and Fees
Unlike other lenders, Maybank does not charge an administrative fee; however, it does charge a 1.25% or minimum $150; whichever is higher for processing fee. It also charges a 2% cancellation fee and S$5 for cashier orders after the first free cash disbursement.
| Fee | Amount |
|---|---|
| Processing Fee | 1.25% or minimum $150; whichever is higher |
| Administrative Fee | N/A |
| Late charge | S$60 monthly |
| Cancellation Fee | 2% of undrawn or cancelled amount, minimum of S$100 |
| Partial Prepayment Fee | 2% of amount prepaid, minimum of S$100 |
| Full Redemption Fee | 2% of amount redeemed, minimum of S$100 |
How to Apply: Application Process
To apply for Maybank's renovation loan, borrowers must submit an application form as well as proof of identity, income, renovation and home ownership. To prove one's income, salaried applicants must submit either their latest computerised payslip, last 6 months' CPF Statement of Account or their latest Income Tax Notice of Assessment. Self-employed or commission-based employees must provide their Income Tax Notice of Assessment for the last 2 years.
Other Required Documents:
- Photocopy of NRIC (front & back)
- Final renovation quotation or invoice
- Renovation permits (if applicable)
- CPF statement of withdrawals for property payment
- HDB information from HDB's website
- HDB Sales Order
- HDB Confirmation Letter
- Property tax bill
Read Also:
Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.