How Much Renovation Loan Can I Get In Singapore?

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Written By Loanbuddy Singapore
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How Much Renovation Loan Can I Get In Singapore?

If you bought your home, an HDB flat, or a condo many years back, you may be looking to change the interiors and fixtures. Or maybe you just want to change the way your home looks.

Singaporeans love to take creative charge of their houses. To increase their home value, they willingly pay to add aesthetics to their flats or private property.

However, it takes a large chunk of cash to finance these restructuring or renovations. If you’re thinking about how much cash you can infuse with a renovation loan? Then this article is for you. We are right there to help you.

Through this article, you will learn everything essential about a renovation loan in Singapore including the costs involved in it and how much loan you can apply for in banks and financial institutions.

How can you utilize a renovation loan in Singapore?

A home improvement loan also known as a renovation loan can be used for various purposes including:

  • Tiling and flooring your home
  • Electrical fittings and wirings
  • Cabinets and closets development
  • Painting Work
  • Interior and exterior décor
  • Restructuring or reworking any external area such as the balcony
  • Any other structural alterations

You must note that you cannot use a renovation loan for purposes other than house renovation, décor, etc.


How much loan amount can you apply for in Singapore?

It’s an important question to ask yourself before you start shopping around different renovation loan options. Under a home renovation loan, banks and financial institutions offer up to six times your monthly salary or $30,000, whichever is lower. But if you need more than that, you can apply for another one along with a personal loan. But you should be deeply committed to paying installments month on month on all the loans you take.

Be noted that once your renovation loan application is approved by a bank or a financial institution, it won’t directly go into your bank account. The funds will instead be disbursed to your interior designer or contractor’s account. However, a licensed money lender may disburse the loan amount directly to your bank account.

Also read Determine the amount needed for home renovation loan

How will a renovation loan operate in Singapore?

A home improvement finances all the costs involved in renovating and redoing your home. Usually, a renovation loan carries a lower interest rate as compared to a personal loan in Singapore.

These loans can be obtained from banks, financial institutions, or licensed money lenders in Singapore. The loan use is restricted to the renovation task only as described above.

After your renovation loan application is approved, you will need to repay the loan monthly to the lender along with interest charges depending upon the loan terms and conditions. The interest rate under this loan is usually calculated on the outstanding loan amount. As and when you make repayments of the principal amount, your interest payments will also reduce in proportion.

Bank officials may often visit your home occasionally to check whether or not the loan is used for the purpose it was applied for. In any case other than use for home renovation, banks may impose hefty penalties on you.

The tenure under a renovation loan ranges between 1 and 5 years. You are free to choose a repayment period that is suitable for you and aligns with your monthly salary and other financial liabilities.

Also Read In-House Renovation loans in Singapore

How much a home renovation can cost in Singapore?

Before starting with a renovation loan application, homeowners should assess the total cost to be incurred in the home renovation. While there is no hard and fast rule for determining the total renovation cost, it can depend upon multiple factors as discussed below:

  • Property size– If you are having a big house with many rooms, you will definitely need more money to renovate it as compared to a smaller property. With other factors kept the same, usually the size of your home is the biggest factor in determining the total cost that may be incurred on renovation.
  • What type of material you will use– The cost will depend upon what type of material you want to use to renovate your home, For example, high-end materials like heavy wooden doors, marble, and countertops will require more money spent. However, at the same time, you shouldn’t end up using cheap materials of low quality to save costs.
  • Renovation fees– If you are working with an individual interior designer or an establishment, the cost will vary for the same work in most cases. Besides considering the renovation cost, you must pay attention to fees quoted by your contractor or interior designer. Look for someone who is offering his/her services at reasonable rates.

To what extent do you need the renovation– There could be several modifications you want while renovating your time. While making the budget for the renovation cost, assess what areas in your home need renovation and what do not. For example, you may want to build a cabinet, new closets, and walls to get repainted, redoing of the tiles and floors, or maybe new bathroom fixtures. 


While applying for a renovation loan in Singapore, don’t forget to check whether or not your credit score is satisfactory. Most banks or financial institutions deny applications where the applicants were either in disciplined towards repayments in past loans or made any default. Those applicants are often considered high-risk customers to the lender. However, a licensed money lender may disburse you a renovation loan even if you have a low credit rating but the interest rate will be much higher as compared to what banks or financial institutions may offer. Their application process is also quicker and less rigorous.

If you are unsure whether or not your renovation loan applicant will get approval, connect with us. LoanBuddy gives a free assessment of your loan application and provides you with suggestions on the most appropriate loan product. Also, if you want a comparison of different loan options in the market, talk with our loan consultant for free.

Also Read Are Renovation loans A Good Idea?

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