Tips on Singapore renovation loan

If you are thinking of getting a renovation loan in Singapore to renovate your new home, this is the post that you are looking for! In this post, I will provide you with some general information about getting a renovation loan and what to look out for. After reading this post, you will at least know what you are getting into before signing on the dotted line. Plus I have a special renovation loan deal for you!

What is the lowest interest rate for renovation loan?

At the moment, 14 September 2013, from the research I have done, the lowest interest rate is 2.88% per annum (flat rate) with a minimum of $15,000 loan. At the moment, there is no indication when the 2.88% interest rate will end.

**Please leave me a comment below if you managed to find a bank that offer even better interest rate.

Is there any other charges?

There is a 1% processing fee. For some banks, you have the option to pay cash, while the others will deduct this fee directly from the loan amount, for example $15,000 – $150 = $14,850.

Difference between flat and variable rate

The banks offered 2 types of renovation loan. One is flat and the other is variable rate. Flat rate is for customers who are comfortable with just paying the same amount of instalment every month. Variable rate is for customers who plans to do early repayment (only 2% penalty fee on prepaid amount).

What does it means: If you are comfortable with knowing how much to pay per month, use flat rate. Most homeowners will use flat rate in normal situations. Variable rate is for homeowners with high cash flow or liquidity who wants to repay the loan really early. However, because of some unknown variable factor, it is rare that anyone will take up the variable rate.

Summary of loan repayment amount and interest rate

Most banks like to show percentages which are very small numbers. But these small figures can add up to a sizeable sum. It is important to understand what you are going into before committing yourself. Therefore, I have came up with a few tables that will give you a clearer view of what you are going into with one of the (or the) lowest interest rate renovation loan in town.

vincent interior blog Singapore renovation loan-1

**The above estimated figures might defer slightly from actual situation. You can also use the bank’s calculator to work out the monthly loan instalment figure (Please note: interest rate is 2.98% in the calculator).

What does the table means to you? Nothing is for free. When you borrow more money or get a longer loan period, you pay more interest. If you want to pay lower monthly instalment, you need to get a longer loan period.

What are the penalties and other charges involved?

  • Late payment fee: 10.7% (5%+5.7% Prime Lending Rate) based only on the instalment overdue
  • Default payment penalty: 10.7% (5%+5.7% Prime Lending Rate)
  • Early repayment fee: 2% penalty fee on prepaid amount
  • Cancellation fee: 1% on the loan amount cancelled (maximum $200)
  • Disbursement fee: Free 1st Cashier’s Order for disbursement to your contractor and $10 each for subsequent  Cashier’s Orders (Max. 3)

Advises from the banker (from the loan department)

  • Every individual cases differ from each other. Owners should only apply for the installment package that they are comfortable with in case they need cash for emergency uses and unable to pay, leading to additional late payment.
  • Upon loan approval, cashiers’ order (payable to the contractor firm), should be passed to home owners first so they will pass to the contractors personally.
  • There are more and more young couples getting properties and want to do up their house. However their commitment level are too high (e.g. too many credit cards, bank o/d and loans with many other banks). This will make it tough for any banks to approve such loans. Therefore, only customers with neat and good credit profile will be more likely to get the loan approved. If not, they will need to bring in joint borrowers (someone related e.g. parents, spouse or siblings) or guarantors (friends, neighbours etc.)

How much can you borrow?

Renovation Loan: 6 X of monthly income or $30,000 whichever is lower of a single application.

Procedures for applying for RHB renovation loans and lead time


–          Main Applicant:

  • Singapore Citizen or Singapore Permanent Resident
  • Aged between 21 to 55 years
  • Earning a minimum annual income of S$24,000

–          For the Joint Applicant (where applicable):

  • Singapore Citizen or Singapore Permanent Resident
  • Aged between 21 to 55 years
  • Must be a spouse, sibling, parent or child of the Main Applicant
  • Gainfully employed

Homeowners would have to provide the following documents for renovation loan application:

  1. Photocopy of NRIC (both sides) of Applicant(s)
  2. Proof of Income:

Salaried Person:

  • Latest 3 months Pay Slip AND (ii) CPF Statement for past 6 months OR (ii) Latest Income Tax Notice of Assessment (NOA)


  • Latest Income Tax Notice of Assessment (NOA) for the past 2 years

*for free NOA, log on and print from using SingPass or IRAS PIN

  1. Copy of Contractor’s Quotation / Invoice duly signed by BOTH applicant(s) and Contractor(s). Full address including postal code of property to be renovated is required as well.
  2. Proof of ownership on property to be renovated e.g. HDB Letter of Approval / Flat Information, CPF Property Withdrawal Statement, Certificate of Title, Property Tax bill, etc
  3. For joint application: Proof of relationship document e.g. copy of marriage or birth certificates

The lead time for the loan approval after completed documents submission is about 3-5 working days for renovation loan.

How do banks approve your renovation loan?

The credit officers actually calculate each applicant’s commitment level by using DSR (debt servicing ratio) of 20%. For your example, since HDB is fully paid by CPF, it will not be considered in the calculation. For example if your income is $5000 and monthly commitment is $2000, your DSR is $2000/$5000 X 100% = 40% which is way over the maximum DSR of 20%. In this case, the credit officers will request for an additional joint (if the main already has a joint) or a guarantor to come in and support this loan application.

Extra benefits or marketing strategies from the banks

Some banks offer:

  • free personal accident insurance on the main borrower
  • furnishing loan for their renovation loan customers. Interest rate: 6.5%p.a. for 1st year, 7% p.a. for 2nd to 5th year. Furnishing Loan: 4 X of monthly income of main applicant or $20,000 whichever is lower.
  • free gifts as one of the way to attract customers.

My personal advice

  • Take flat rate because you need your financial status to be predictable at all times.
  • Split the loan amount into 3 cheques so that you will only give your money to the Interior Designer based on work progression. This will also helps to protect yourself from scams. An additional cost of $10 on each cheque is worth it.
  • If you need more loan and both your income and your spouse’s income can support it, you can split the application. For example the total renovation fee is $50,000, husband apply $25,000 and wife apply $25,000 loan. Reason is because there is a $30,000 loan amount limit per application.
  • Get the loan period that you are comfortable with. Use the monthly loan instalment as a guide.
  • Always make sure that you can service the instalment on time without any late penalty.

Special deal for you!

Vincent Interior Blog will give you a free cash on top of what the banks offer if you take up the loan from my referred bankers:

  • $20,000 – $29,999 loan amount = $40 Cash
  • $30,000 loan amount = $60 Cash

**This is a personal offer that has nothing to do with the banks. Your loan will be from a approved and legal bank in Singapore.

You get all the benefits like everyone else from the bank and additional free cash from Vincent Interior Blog! Absolutely no other stings attached except:

  • minimum $20,000 loan amount
  • must be from my referred bankers

Fill in the application today:

Free cash gift procedures:

  • fill in the application form
  • the banker will contact you shortly about application procedures
  • after approval, simply take a picture (using your mobile phone) or scan the approval letter and email to
  • After the loan has been given out to your Interior Design, a cheque (with the applicant’s name) will be send to via post.

Blog about Interior Design, renovation and home improvement.


52 Responses to “Tips on Singapore renovation loan”

  1. Nino

    Dec 31. 2013

    Thanks to Vincent,

    I got referred banker from him and she can proceed my application fast both the approval and disbursement since we’re racing to get it done before CNY. And I’ll get the cash next week!

    Reply to this comment
  2. Vincent

    Dec 31. 2013

    Hi Nino, thank you for your support and application. Your $40 cheque is on the way to your mailbox!

    Reply to this comment
  3. Alex

    Jan 23. 2014

    Tks Vincent for introducing a nice, pleasant and efficient banker. Loan approval & cheque disbursement was all done in a working week! Highly recommended to all! (^^,)

    Reply to this comment
    • Vincent

      Jan 28. 2014

      Hi Alex, thank you for the comment. You should have gotten the cheque by now. Do email me if you have not.

      Reply to this comment
  4. Robin

    Jun 09. 2014

    Is there any in house loan from contractor instead of bank loan?

    Reply to this comment
  5. alyn

    Jun 17. 2014

    Hi Vincent. both me & husband pay is below 24k. how do we go about it?

    Reply to this comment
  6. ian

    Jun 24. 2014

    Hi.. just asking only what if im a single applicant and my salary is not a basic salary but and also my salary did not reach $24k mark..

    Reply to this comment
    • Vincent

      Jul 22. 2014

      Hi Ian, only a banker can answer you. You can submit your enquiry by filling in the forms and my preferred bankers can contact you.

      Reply to this comment
    • Vincent

      Oct 13. 2014

      Hi Ian, my suggestion is go straight to the bankers and ask them. The banks have many procedures. Try and you might get it.

      Reply to this comment
  7. Norashikin

    Sep 08. 2014

    My basic is 1700, I dont think I can get a bank loan
    Is there any other way for me take renovation loan for a 2 room flat?

    Reply to this comment
    • Vincent

      Oct 13. 2014

      Most homeowners’ problem is there debt level. If you earn 1700 with zero debt, I am sure the bank is happy to loan the money to you. The only issue is how much.

      Reply to this comment
  8. Rob Leonardo

    Oct 15. 2014

    Hi Vincent, Thank you for the referral and free cash for availing of the reno loan. It definitely helped! Well wishes to you blog 🙂 Sorry for not sending this comment soon.

    Reply to this comment
  9. Sharyl

    Oct 27. 2014

    Hi Vincent, I am trying to get a renovation loan but upon checking my credit rating, it is unfortunately, I have a credit score of 1822. Is there any other way for me take renovation loan for a 3-room flat?

    Reply to this comment
    • Vincent

      Oct 30. 2014

      Hi Sharyl, I understand your situation and many Singaporeans are facing the same issue. There is really no alternative out unless someone is willing to be your guarantor or lend you money. My suggestion is to at least come out with 2k to 5K. Fix up the minimum so that you can at least stay in the house. Save up some money and buy your furniture item by items. Live within your means. I personally experienced that. At least end of the day, you will live a less stressful and debt free life. Hope that helps.

      Reply to this comment
  10. Safiee Sawal

    Oct 31. 2014

    Hi Vincent,

    I am trying to get a renovation loan but upon checking my credit rating, it is unfortunately,i have a record on my previous car loan. Is there any other way for me take renovation loan for a 4-room flat? i have zero credit with all banks and owe them nothing now. any solution?

    Reply to this comment
    • Vincent

      Nov 23. 2014

      Hi Safiee, only the banks can decide whether to lend or not. There is pretty much nothing I or anyone can do. There must be a reason for the bank not to lend the money to you. Since the banks are not willing to lend you the money, my suggestion is to live within your means. Fix up the minimum so that you can at least stay in the house. Save up some money and buy your furniture item by items.

      Reply to this comment
  11. Cherie

    Dec 06. 2014

    Hi Vincent,

    Can I ask if I am not the owner of the house and I am just the occupied and can I able to borrow the loan?

    Reply to this comment
  12. Ann Ang

    Dec 06. 2014

    Hi Vincent, I came across your blog and really appreciate for the post. Would like to check, which bank does your preferred banker from? RHB?

    Reply to this comment
    • Vincent

      Dec 10. 2014

      Hi Ann, I am unable to mention the bank in my blog. All I can say is that my preferred banker is from a big bank that offers one of the best interest rate in town.

      Reply to this comment
  13. Azman

    Dec 13. 2014

    Hi Vincent,

    My P/A is around 40k & I did a credit check on myself @ CBS (Singapore) with a score of AA-1948. Was looking around for a renovation loan of 30k (possible with my pay?) for 3yrs or 4yrs period. Any advice on this or from ur contacts perhaps? Cheers..

    Reply to this comment
  14. kevin

    Dec 18. 2014

    Hi thank you for your blog. May i request your banker to contact my email

    Reply to this comment
  15. nazimah

    Dec 31. 2014

    Hi..Appreciate if you can ask ur banker to send me an email with regards to the renovation loan


    Reply to this comment
    • Vincent

      Dec 31. 2014

      Hi Nazimah, please fill in the contact form above (just at the bottom of this post before the comment section) and the banker will contact you shortly.

      Reply to this comment
  16. suhaila

    Feb 02. 2015

    Hi im facing a bank loan problem…me n husband either one salary did not reach 24k p.a. which bank can offer us loan…as my husband pay is 1.9k…

    Reply to this comment
    • Vincent

      Feb 17. 2015

      You can combine both your income and try to apply. Maybe it will work. Just try and you never know you might get an approval from then bank.

      Reply to this comment
  17. Anne

    Mar 05. 2015

    Hi Vincent, thanks for your referred banker to enable me to have a speedy service and disbursement of loan:)

    Reply to this comment
  18. su69

    Mar 27. 2015

    Hi Vincent,
    My husband has tried to apply a reno loan from a couple of banks and was rejected due to bad credit score.I read from ure blog and u mention something about a guarantor. How do one become a guarantor and whatis d chances of getting the loan with a guarantor? Do any of ure referred banker able to help if I can get a guarantor for the loan?

    Reply to this comment
    • Vincent

      Apr 11. 2015

      All su69,

      All you need to do is to fill in the application form in my website (reno loan page). I will let the banker advise you on the criteria of a guarantor. Basically there is a higher chance of getting the loan because if you do not pay, your guarantor will have to pay.

      Reply to this comment
  19. Gee78

    Mar 31. 2015

    Hi Vincent,
    Our first joint application was rejected, maybe bcoz of my bad credit standing. My wife latest NOA is 29k, with better credit standing. Is it better to let her apply individually? Can you refer any bank? Thanks in advance…

    Reply to this comment
    • Vincent

      Apr 11. 2015

      Hi Gee78, It will be really tough for you to get the loan. My advises:
      1) get a small loan from friends and relatives ($15K)
      2) do minimum renovation so that you can at least stay in your house.
      3) buy your furniture and electrical appliances with cash one at a time.

      This is what I did personally and not get into further debts. Hope it helps you.

      Reply to this comment
  20. Snow

    May 05. 2015

    Hi Vincent, does it mean that monthly repayment amount under variable rate is not a fixed amount every month?

    Reply to this comment
    • Vincent

      May 27. 2015

      Hi Snow,

      If I am not wrong, variable rate means the interest rate will change according to the bank. Its kind of complicated and I am not a banker. So it is difficult for me to explain too.

      Reply to this comment
  21. Joanne

    Jun 21. 2015

    Hi vincent

    Need your kind advice on the reno loan. Thanks

    Reply to this comment
  22. Winnie

    Jun 26. 2015

    Pls get your banker to drop me an email regarding the Reno loan. Thanks!! 😀

    Reply to this comment
    • Vincent

      Jul 08. 2015

      Hi Winnie,

      Please fill in the application for in this webpage. Than banker will need the details in order to contact you.

      Reply to this comment
  23. Zappy

    Jul 02. 2015

    Hi Vincent

    May i ask if the bank will be giving us the cash or cheque paid to ID’s company name?

    Reply to this comment
    • Vincent

      Jul 08. 2015

      Hi Zappy,

      The bank will issue cheque addressing to the ID company. You will be the one receiving the cheque so that you can hand over to the ID.

      Reply to this comment
  24. Ronnie Finaid

    Jul 13. 2015

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  25. Ann

    Nov 24. 2015

    Thanks Vincent for your referral and cash gift! The whole process is pretty quick and smooth. Will definitely recommend to our friends who are seeking for reno loan (:

    Reply to this comment
  26. MARNI

    Dec 23. 2015

    I need a reno loan, RHB only can grant me $12,600 but i still need a shortfall i really hope you could help me.


    Reply to this comment
  27. Edward

    Apr 28. 2016

    Hi Vincent, is this free cash deal still valid? Just dropped you my contact yesterday.

    Reply to this comment
  28. Ben

    Jun 05. 2016

    Hi pls get the banker to contact me. Thanks

    Reply to this comment
  29. Jack

    Jun 13. 2016

    Need a revo loan for my house soon. Any recommendations ? Thanks

    Reply to this comment
  30. Hi guys This content is very helpful .I was also looking for loans with no guarantor.i search this website loans with no guarantor on google and just got Excellent service as I wish to get with no problem and worry

    Reply to this comment
  31. pest control

    Aug 27. 2016

    Great piece of information

    Reply to this comment

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