Applying for Renovation Loans in Singapore
You need a home renovation loan to allow you to finance your home renovation. Before going off to apply for your renovation loan, you need to understand the basics. Here we have compiled some essential information that you may need to know before applying for your renovation loan.
- For you to qualify for a renovation loan, you need to own a property (of course). It can be a landed property, HDB, condo or others. You also need to be a Singaporean or a Singaporean PR, aged 21 to 55 years old. The monthly income requirement is $2,000 per person. However, you may apply with a joint applicant. The joint applicant must be a spouse, parent, sibling or a child.
- You can mostly get a minimum loan amount of $10,000. Usually the maximum loan is six times your monthly income. But do note that it is usually capped at $30,000. There are also some furnishing loans offered by some Singapore banks. You may try looking into this too.
- The renovation loan tenure can be from 1 year to 5 years.
- There is also a processing fee required by banks. The processing fee can be anywhere between 1% to 2% of your loaned amount. The bank will require you to pay the processing fee upon signing of the letter of offer.
- To apply for a renovation loan, you need to prepare the original and photocopy of your NRIC, both sides; latest computerized payslip and CPF contribution for the last 6 months (or Income Tax Notice of Assessment); contractors’ quotation with stamp and signature; proof of ownership of the property that will be renovated; and the completed application form.
- There are a lot of banks offering renovation loans, RHB, DBS, OCBC are just some of them. You can try asking these banks to learn more about the renovation loan process.