CIMB Renovation-i Financing Loan Review: Singapore's Cheapest Renovation Loan?
CIMB Renovation-i Financing Loan Review: Singapore's Cheapest Renovation Loan?
ValueChampion Rating 
Pros
- Affordable renovation loans with tenure of 4 to 5 years
- Flexibile disburment
Cons
- Not the cheapest for short-term renovation loans of 1 to 3 years
- Minimum loan of S$10,000
CIMB's Renovation-i Financing renovation loan offers some of the best rates for long-term renovation loans or projects more than S$25,000. Also, Renovation-i Financing offers some of the lowest effective interest rates and boasts a quick 1-day turnaround for homeowners looking for immediate funds.
| Summary of CIMB's Renovation Loans |
|---|
| One of the cheapest interest rates for 4 to 5 year renovation loans |
| Low processing fee: 1.2% |
| Covers all renovation types, whether completed or under construction |
Table of Contents
What Makes CIMB's Renovation-i Financing Stand Out to Borrowers
CIMB offers some of the cheapest effective interest rates (EIR) for renovation loans in Singapore for loans above S$25,000 with loan tenors between 4 to 5 years. The EIR for a 5 year loan of S$25,000 can be as low as 4.85%. These rates are great for individuals looking for lower monthly payments or for more expensive projects. The bank also has lower introductory fees as it charges a processing fee of 1.2% and no administrative fee. Borrowers are also able to choose flexible tenures for up to 5 years that cover all types of residential properties, completed or still under construction.
With that said, there are a few limitations of CIMB's renovation loans. First, borrowers that currently have a home loan with another bank may be offered lower renovation loan rates from their home lender than they would from CIMB. Additionally, CIMB's minimum renovation loan of S$10,000 is twice as high as many other lenders, which may be a deterrent for borrowers planning smaller home renovation projects. Finally, borrowers that seek a shorter renovation loan, either for smaller projects or to lower the total cost of the loan, could find lower rates from Maybank.
Summary of CIMB Renovation Loan Interest Rates at S$25,000
| Financing Tenure (Years) | Monthly Rest Profit Rate^ (p.a.) | Processing Fee | Effective Profit Rate (p.a.) | Monthly Instalment Amount |
|---|---|---|---|---|
| 1 | 4.48% (CPR-1.02%) | 1.2% of the approved financing amount (deducted upon financing disbursement) | 6.74% | S$2,135 |
| 2 | 4.48% (CPR-1.02%) | 5.66% | S$1,091 | |
| 3 | 4.48% (CPR-1.02%) | 5.29% | S$744 | |
| 4 | 4.35% (CPR-1.15%) | 4.96% | S$569 | |
| 5 | 4.35% (CPR-1.15%) | 4.85% | S$465 |
Who Can Apply: Eligibility Criteria
To be eligible for CIMB's renovation loan, applicants must be Singaporean's or Permanent Residents. Borrowers must apply for a loan of at least S$10,000 and less than S$30,000.
Other Charges and Fees
Unlike other renovation lenders, CIMB does not charge an administrative fee. However, it does charge a 1.2% processing fee. The bank also charges a few standard fees, such as late payment, prepayment and cancellation fees. However, we advise that borrowers stick to their payment schedule to avoid these fees and keep their loan as inexpensive as possible.
| Fee | Amount |
|---|---|
| Processing Fee | 1.2% |
| Administrative Fee | N/A |
| Cashier Order | $10 per order (first 3 free) |
| Prepayment Fee | 1% of amount prepaid |
| Late Payment Fee | S$80 |
| Cancellation Fee | 1% of the loan amount cancelled |
How to Apply: Application Process
Applicants must provide a completed application form, proof of identification and home ownership. Additionally CIMB requires proof of income. For salaried employees, this includes their latest Income Tax Notice of Assessment and either their latest 3 months computerised payslip or last 12 months CPF contribution history. Commission-based individuals must submit their latest 2 years of employer's commission statements or Income Tax Notice of Assessments. Finally, self-employed individuals must submit their latest 2 years of Income Tax Notice of Assessments
Other Required Documents:
- Photocopy of NRIC (front and back)
- Original contractor's contract/invoice duly signed by applicant and contractor
- Proof of property ownership
- Cable TV, internet or utility bills, any bank statements
- Marriage certificate or birth certificates (for Principal and 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.