Best Renovation Loans 2018

If you are looking for ways to help finance your home renovation, you may want to consider the best renovation loans in Singapore below. Our analysis allows you to easily compare the rates and features of the best renovation loans and ultimately choose a loan that works best for you.

Cheapest Short-Term Renovation Loan: CIMB Renovation Loan

CIMB Renovation Loan

Consider this if you require a renovation loan of 3 years of less

Maximum Principal 6x Monthly Income or S$30,000
Rest Rate 2.98%
Cashier Fee 3 free, S$10/each after

When shopping for the best renovation loan, pretty much the only thing you should consider is how much a loan will cost you. The option with the lowest cost is the best option, assuming that you qualify for the loan. From this point of view, CIMB’s Renovation Loan is the one of the best options in Singapore because it charges the lowest interest and processing fee for tenures shorter than 3 years.

Not only that, CIMB also requires an annual income of only S$24,000 to qualify for the loan, while most other banks require an annual income of at least S$30,000. It also charges a lower processing fee of 1% than other renovation lenders. The only downsides of CIMB's renovation loans are that it is not the cheapest option for 4 and 5 year loans and that it will only lend out at least S$10,000 as a renovation loan. If you are looking for a renovation loan with a longer duration or smaller size, you might want to consider other options. For more information, read our full review.

Summary of CIMB Renovation Loan Interest Rates

MaturityProcessing FeeInterest Rate (Rest Rate)Monthly InstalmentTotal Cost
*Assuming loan of S$15,000, total cost includes impact of promotions and fees

Cheapest Long-Term Renovation Loan: Maybank Renovation Loan

Maybank Renovation Loan (Rest Rate)

Consider this if you require a 4 to 5 year renovation loan

Maximum Principal 6x Monthly Income or S$30,000
Rest Rate 4.33%
Cashier Fee 1st free, S$5/each after deducted from loan proceeds

Whether you want to implement a few small-scale renovations one by one or you want to spread out your loan repayment over a long period of time, Maybank's renovation loan could be the best option for you. First, Maybank's interest rate of 4.33% is the lowest in the market for long-term tenures from 4 years to 5 years. This means that Maybank is an ideal option for those whose budgets might be limited and may require them to spread out their loan repayment over a long period of time. The bank also offers dramatically lower rates if you already have a home loan with Maybank. For existing home loan customers, Maybank will reduce the interest rate from 4.33% to 2.88%, which is the lowest in the market.

Maybank also has some of the most flexible conditions for its borrowers. Maybank lends as little as S$5,000, while most banks require at least S$10,000 or S$15,000 of loan principal to qualify for a renovation loan. This means that Maybank's renovation loan could work especially well for those who prefer to make smaller or less expensive renovations. The bank also charges lower cashier fees and a lower processing fee than its competitors. To learn more, read our review of Maybank's renovation loans.

Summary of Maybank Renovation Loan Interest Rates

MaturityProcessing FeeInterest Rate (Rest Rate)Monthly InstalmentTotal Cost
*Assuming loan of S$15,000, total cost includes impact of promotions and fees

Renovation Loan From Your Home Loan Lender

Maybank Renovation Loan (Rest Rate)
OCBC Renovation Loan
DBS Renovation Loan
  • Maybank Renovation Loan (Rest Rate)
  • OCBC Renovation Loan
  • DBS Renovation Loan
  • Maybank Renovation Loan (Rest Rate)
  • OCBC Renovation Loan
  • DBS Renovation Loan
{"items":["\u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cimg alt=\"Maybank Renovation Loan (Rest Rate)\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/\/value-penguin\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/maybank-1\" srcset=\"https:\/\/\/value-penguin\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/maybank-1 1x, https:\/\/\/value-penguin\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/maybank-1 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E","\n\u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cimg alt=\"OCBC Renovation Loan\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/\/value-penguin\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/ocbc-1\" srcset=\"https:\/\/\/value-penguin\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/ocbc-1 1x, https:\/\/\/value-penguin\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/ocbc-1 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E","\n\u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cimg alt=\"DBS Renovation Loan\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/\/value-penguin\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/dbs-1\" srcset=\"https:\/\/\/value-penguin\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/dbs-1 1x, https:\/\/\/value-penguin\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/sg\/banking\/dbs-1 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E"],"offsetPercentage":20}

If you already have taken out a home loan from a bank, it might be worthwhile to consider getting your renovation loan from the same bank. This is because banks provide a preferential interest rate for loyal customers who get both a home loan and a renovation loan from the same bank. Doing so can also benefit you by reducing the complexity of managing multiple bills from different parties every month. Usually, you can save about 1.0% to 1.5% in interest rate through this preferential rate. For instance, Maybank's interest rate declines from 4.33% to 2.88% for their home loan customers, while DBS and POSB’s interest rates decline from 4.88% to 4.38% for their home loan customers. For a loan of S$15,000 over 3 years, this could translate into savings of S$110. Please see below table for detailed analysis of cost savings.

Total Cost by Maturity for DBS loan of S$15,000New CustomersLoyal CustomersDifference In Cost

Summary of Best Renovation Loans in 2018

When shopping for a renovation loan, the primary factor you should consider is the overall cost of the loan. This includes both the processing fee and the interest expense. Above, we have compiled all the renovation loan offerings from major lenders in Singapore by cost. To calculate the total cost, we assume a loan of S$15,000 over 5 years for a borrower that makes at least S$30,000 of annual income. Given that home renovations cost S$55,000 on average, this loan would cover about 25% of the total cost of your home remodeling.

Renovation LoanFeeInterestMonthly PaymentTotal Cost
Maybank Renovation Loan1%4.33% Rest RateS$278S$1,859
CIMB Renovation Loan1.0%4.44% Rest RateS$279S$1,904
DBS/POSB Renovation Loan2.0%4.88% Rest RateS$282S$2,235
OCBC Renovation Loan1% + S$2004.98% Rest RateS$286S$2,491
RHB Renovation Loan1.0%5.8% Flat RateS$289S$2,466

Cost Comparisons of Renovation Loans by Bank

For people who make at least S$30,000, there are a lot of renovation loan options in Singapore. Below, we illustrate how each loan will cost in dollars over the course of its maturity. We assume that a borrower takes out a renovation loan of S$15,000 over 5 years, and that they do not qualify for preferential rates for returning customers (i.e. they do not already have home loans from a certain bank).

Comparing total cost of home renovation loans from major banks in Singapore, assuming a loan of S$15,000 over 3 years
Cost of Home Renovation Loan in Singapore
Duckju Kang

Duckju is the Senior Vice President of ValuePenguin Singapore. He covers the financial services industry, consumer finance products, budgeting, and investing. He previously worked in the financial services industry, including at such hedge funds as Tiger Asia and Cadian Capital.

Comments and Questions