OCBC Renovation Loan Review: Is This the Best Loan for You?

OCBC Renovation Loan Review: Is This the Best Loan for You?

OCBC does not offer the lowest interest rates for renovation loans and is best viewed as a backup option for borrowers that are unable to obtain a loan elsewhere.

Good for

  • OCBC home loan customers that are unable to obtain another renovation loan

Bad for

  • Homeowners seeking the cheapest renovation loan

Editor's Rating

3.5/5.0

OCBC's renovation loans charge higher interest rates (5.38%) 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
High rest rates: 5.38% (new customers) & 4.98% (OCBC home loan customers)
Higher fees than competitors: 1% administrative fee + S$200 processing fee
Low minimum loan requirement: S$5,000
Loan disbursed in 1 working day

Table of Contents

What Makes OCBC's Renovation Loans Stand Out to Borrowers

OCBC's renovation loan interest rate of 5.38% and higher than average processing fees make 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 and disburses loans in one business day upon approval. Therefore, OCBC is a decent backup option to banks that offer cheaper renovation loans.

Summary of OCBC's Renovation Loan

MaturityFeesInterest Rate (Rest Rate)Monthly InstalmentTotal Cost
11% + S$2005.38%S$1,287S$791
2S$661S$1,205
3S$452S$1,627
4S$348S$2,055
5S$286S$2,491
*Assuming loan of S$15,000, total cost includes impact of promotions and fees

While OCBC does offer a preferential rate to its current home loan customers, even this rate is not competitive with those of other banks. Existing homeowners with home loans from OCBC may want to keep this in mind in case their other renovation loan applications are not accepted.

Summary of OCBC's Renovation Loan for Existing Home Loan Customers

MaturityFeesInterest Rate (Rest Rate)Monthly InstalmentTotal Cost
11% + S$2004.98%S$1,284S$758
2S$658S$1,140
3S$449S$1,529
4S$345S$1,925
5S$283S$2,326
*Assuming loan of S$15,000, total cost includes impact of promotions and fees

Who Can Apply: Eligibility Criteria

Consider this if you are unable to obtain another renovation loan

Maximum Principal 6x Monthly Income or S$30,000
Rest Rate 4.98%
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 and 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.

FeeAmount
Processing FeeS$200
Administrative Fee1%
Cashier OrderS$20, first 3 are free
Partial Prepayment Fee2% of amount prepaid
Full Redemption Fee2% of outstanding loan balance
Late Payment FeeS$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)

Comments and Questions