OCBC's renovation loans charge competitive interest rates (4.18%) than other lenders in Singapore. Additionally, it charges more in fees than its competitors. For these reasons, homeowners should view the bank as a backup option to other renovation lenders.
|Summary of OCBC's Renovation Loans|
|Competitive rest rates: 4.18% p.a.|
|Higher fees than competitors: 1.5% administrative fee|
|Low minimum loan requirement: S$5,000|
|Loan disbursed in 1 working day|
|Current Promotions: S$100 UNIQGIFT e-Vouchers & up to S$120 in NTUC FairPrice vouchers|
Table of Contents
What Makes OCBC's Renovation Loans Stand Out to Borrowers
OCBC charges competitive rates for its renovation loans (rest rate: 4.18% p.a., flat rate: 2.20% p.a.); however, the bank charges higher than average processing fees (1.5%), making it a relatively expensive option for homeowners. With that said, OCBC offers renovation loans to individuals with annual incomes of at least S$24,000, which is a lower requirement than other banks. It also has a lower minimum loan requirement (S$5,000) and disburses loans in one business day upon approval.
Summary of OCBC's Renovation Loan
|Maturity||Fees||Interest Rate (Rest Rate)||Monthly Instalment||Total Cost|
|*Assuming loan of S$15,000, total cost includes impact of promotions and fees|
OCBC is also offering a promotion of S$100 UNIQGIFT e-Vouchers (minimum loan amount of S$15,000) and up to S$120 in NTUC FairPrice vouchers (for OCBC Renovation Loan customers who sign up for an electricity plan with Tuas Power Supply). Therefore, OCBC is a decent backup option for those that are unable to obtain a more affordable loan from a different lender.
Who Can Apply: Eligibility Criteria
Singaporeans ages 21 to 59 with annual incomes of at least S$24,000 are eligible for OCBC's renovation loans. The bank offers loans of S$5,000 to S$30,000 or 6 times your monthly income, whichever is lower.
Other Charges & Fees
OCBC charges more in initial fees than most renovation lenders. While most other banks charge an administrative fee, OCBC also charges a processing fee of S$200. In addition to its processing and administrative fees, OCBC charges a handful of standard fees for early repayment, late payments and cashier orders.
|Cashier Order||S$20, first 3 are free|
|Partial Prepayment Fee||2% of amount prepaid|
|Full Redemption Fee||2% of outstanding loan balance|
|Late Payment Fee||S$80|
How to Apply: Application Process
Individuals interested in applying for OCBC's renovation loans must submit an application form as well as income and property documentation. For income documents, salaried employees must submit payslips for the latest 6 months, CPF contribution statement for the last 6 months, or their latest income tax statement. Commission-based and self-employed applicants are required to submit their CPF contribution history for the past 12 months or income tax statements for the last 2 years. Successful applicants will receive loan 1 day after their loan is accepted.
Other Required Documents:
- NRIC photocopy
- Contractor's quotation (signed by homeowner and contractor)
- HDB Sales Order
- Marriage Certificate or Birth Certificate (joint applicants)