OCBC Renovation Loan Review: Is This the Best Loan for You?
OCBC Renovation Loan Review: Is This the Best Loan for You?
ValueChampion Rating 
Pros
- Good alternative renovation loan when denied by other lenders
Cons
- Not the cheapest renovation loan available
OCBC's renovation loans charge better 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. |
| Cheaper fee than competitors: 0.5% administrative fee |
| Low minimum loan requirement: S$5,000 |
| Current Promotions: Get complimentary GreatHome Insurance (for OCBC Eco-Renovation Loan applicants) or 50% off your first-year of GreatHome Insurance (for OCBC Renovation Loan applicants) until 30 June 2022. |
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.). OCBC also 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 within 5 business days of approval.
Summary of OCBC's Renovation Loan
| Maturity | Fees | Interest Rate (Rest Rate) | Monthly Instalment | Total Cost |
|---|---|---|---|---|
| 1 | 0.5% | 4.18% | S$1,278 | S$567 |
| 2 | 0.5% | 4.18% | S$653 | S$887 |
| 3 | 0.5% | 4.18% | S$444 | S$1,211 |
| 4 | 0.5% | 4.18% | S$340 | S$1,540 |
| 5 | 0.5% | 4.18% | S$277 | S$1,873 |
| *Assuming loan of S$15,000, total cost includes impact of promotions and fees | ||||
You can also opt for OCBC’s Eco-Care Renovation Loan to make your renovations more sustainable and energy efficient, and enjoy promotional interest rates of just 3.98% per annum.
OCBC is offering a limited time promotion of 50% off the first year of GreatHome insurance coverage for your house when you sign up for the OCBC Renovation Loan, or a complimentary first year for people who sign up for the OCBC Eco-Care Renovation Loan. 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
- Maximum Principal
- 6x Monthly Income or S$30,000
- Rest Rate
- 4.18%
- Cashier Fee
- 3 free, S$20/each after
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
In addition to its 0.5% admin fees, OCBC charges a handful of standard fees for early repayment, late payments and cashier orders.
| Fee | Amount |
|---|---|
| Processing Fee | N/A |
| Administrative Fee | 0.5% |
| Cashier Order | S$20, first 3 are free |
| 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)
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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.