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5 Things You Must Know Before Applying for a Renovation Loan

Renovation Loan

Everyone has envisioned their dream house – where they intend to spend each day with their loved ones. It might be a sea side property, how it looks like on the exterior or interior. Or, you might just wish to have your own swimming pool. One thing is certain, one person’s dream house is unique and different from another.

You could build it from scratch, or you can renovate your existing home. Unfortunately, not everyone has the means or funds to be used to get their dream house. To overcome this, most homeowners would apply for a renovation loan. Know more about the renovation loan guide here.

First thing first, what is a renovation loan?

In short, it’s a tool that can help you to realize your dream house by turning it into a reality. A renovation loan can be used to finance the renovation of a new or existing home.

Luckily, banks in Singapore do provide home renovation loans. Usually, the interest rates for a renovation loan are far lower than that of a personal loan. It is with a general maximum loan amount of 6 times your monthly wages and a cap of $30,000. This might vary depending on the banks you go to.

If you’re qualified from these requirements below, you can apply for a renovation loan:

  1. A Singapore Citizen or Singapore Permanent Resident
  2. Between 21 – 65 years old (maximum age limit might vary across banks)
  3. Earning a minimum annual salary of $24,000 (for joint applications, at least 1 applicant needs to earn this amount)
  4. A property owner, or a related family member who has the owner’s consent (joint applicants must be related)

Do note that the amount you’re eligible to borrow will depend on other factors, such as your income and existing debts (check your loan-to-value ratio). Other factors include interest rate, maximum loan amount, involved fees (processing fees, late payment fees, early repayment fees and cancellation fees), bank or financial institution provider and current promotions (if any).

The general guideline is that you’re able to borrow up to 6 times your monthly income. So, if you’re earning $3,800 per month, you could potentially borrow up to $22,800.

It’s another thing if you and your spouse or partner decided to take up a joint application for a renovation loan. Let’s say your other half is making $4,000 per month. Hence, the total sum of both monthly incomes is $7,800. With this amount, you could potentially borrow or apply for a renovation loan worth $46,800.

Second, how does a renovation loan work?

The maximum repayment tenure for a renovation loan is up to 5 years – which is also the same maximum period for a personal loan. If you’ve not finished paying the renovation loan once the period ends, you might incur a much higher amount.

Besides that, the interest rates for renovation loans are calculated based on the outstanding balance of the loan. This means that as you repay the outstanding loan amount every month, the repayment amount and interest paid will also reduce over time.

This is because of the difference in the interest rate calculation – it’s not calculated at a flat rate. So, it tends to have lower interest rates than other loan types.

Here’s another thing that makes a renovation loan different. Once it’s approved, the approved loan will be disbursed directly to the contractors. Not in cash or cheque or bank transfer, but it’s in the form of a cashier’s order. Please be reminded that the financial institution might ask about the purpose of the home renovation and what it would entail.

So, it’s in the best mind to keep it listed in the quotation or invoice for the home renovation. This is because there might be site visits that may be conducted post-disbursement of the loan. This is to ensure that the loan is being used for the stated renovation works.

Third, how much a home renovation would cost?

This is the biggest factor you should consider when you’re deciding to take up a renovation loan or not. The usual cost for a home renovation could cost between $20,000 to $70,000 – it entirely depends on what you want to renovate in your new or current home. Let’s say you want to level up your bathroom, according to Livspace, it could cost you between $4,000 to $7,000 (here’s the breakdown of the estimated cost!).

  • Hacking a bathroom: $1,200 to $1,500
  • Plumbing: $1,200 to $1,500
  • Tilling: $3,000 to $4,000
  • Shower screen: $600 to S$850
  • Vanity (depending on the size): $850 to $1200

Once you’re planning to renovate your home, as a wise homeowner, you should figure out the real numbers. From there, you can budget your renovation costs accordingly. That’s when you will have a rough idea of the preferable amount to take up for your renovation loan.

Remember, you’re adding on another financial commitment on top of your existing ones. So, it’s important to budget accordingly. If there’s an area where you can cut to save cost, do it. You don’t want to shoulder a big responsibility as you’re not just paying off your renovation loan, you could also be finishing off your home loan and others at the same time. And, since the tenure for a renovation loan is shorter, you need to stick to it.

Interested to find out the average cost of home renovations in Singapore? Read this article!

Fourth, what kind of renovation works are permissible to apply for a renovation loan?

Below are listed what kind of purchases you can use with the renovation loan:
Flooring and tiling

  • Painting and redecorating works
  • Built-in cabinets, carpentry works
  • Electrical and wiring works
  • Basic bathroom fittings
  • External works within the compounds of your house, such as the balcony, roof etc.

As you know, when it comes to a renovation loan, there will be site visits post-disbursement. This is as the financial institution can check whether the renovations that have been made are aligned with the purchases that have been listed.

Unfortunately, some purchases cannot be paid with the renovation loan. Especially, if it’s outside a renovation. This means you cannot use it to pay for furniture, fittings, and other decorative accessories such as sofas, tables, curtains, mattresses, household appliances and more. Stick to its true purpose only!

So, where to get the best renovation loan?

Try QuickLoan Pte Ltd! There are many banks or financial institutions where you can get a renovation loan. You can even compare them to find the best one that works for you. If there’s not, you can always apply with QuickLoan Pte Ltd.

With Singapore’s most trusted moneylender, you can borrow up to 6 times your monthly income. No worries, you are qualified with a minimum amount of income as low as $1,800. Not only do they offer a choice of either fixed or flexible payment, but they also provide affordable interest rates. You’ll just need to submit your application here.

Wondering why you should that a renovation loan with us? Here are why:

Affordable interest rates

We’re a licensed moneylender in Singapore that’s here to support you on your homeownership or revamp journey. Our low-interest renovation loans will help you build the home you want without burning a hole in your pocket.

Flexible plans based on your needs

We recognize that financial situations vary from person to person. As the leading licensed moneylender in Singapore, we provide customizable loan plans based on your salary and home renovation requirements, ensuring you have access to affordable loan options. Our expert team is dedicated to helping you find the perfect solution for your financial needs, offering guidance and support every step of the way. Whether you’re planning a small update or a major renovation, we are here to help make your vision a reality.

Quick, simple and personalised process

Getting a renovation loan with us only takes 30 minutes! Unlike at banks, we have a streamlined and fuss-free application process that allows you to get your cash fast with as little hassle as possible.

Also, all your information will be kept 100% confidential, and you’ll be assigned a dedicated loan officer who’s happy to support you throughout the whole loan process with us.

Before applying, please make sure you have these documents on the ready:

1. Singaporeans/PR

  • National registration identification card
  • Singpass
  • If renting, provide both:
    • Your tenancy agreement
    • Proof of address, such as your phone bill or utility bill
  • Payslips for the last three months, if available
  • Bank Token


2. Foreigners

  • Singpass / Employment Pass / Work Permit with a minimum 6-month validity
  • Passport
  • Residence information in the form of both:
  • Phone bill or utility bill
  • Tenancy agreement
  • Payslips for the last three months, if available
  • Bank Token
  • Employment contract
  • Staff card

Once you’ve prepared all the necessary documents, you can apply for a renovation loan online or by going to the office. Or, if you have questions or concerns, feel free to contact us via WhatsApp, our customer service staff will be happy to answer any questions you have.

At Quick Loan, our loan application and approval only takes 30 minutes! You’ll be able to receive your cash instantly after your loan agreement has been finalised. Apply for your home renovation loan with one of the most trusted and reliable licensed money lender in Singapore today!

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