How Does a Renovation Loan Work in Singapore?

Renovation Loan

Your Guide to Renovation Loans in Singapore: What You Need, How to Apply & What to Expect

1. What Is a Renovation Loan?

A renovation loan in Singapore is a financing option designed specifically to help homeowners cover renovation costs. Unlike standard personal loans, renovation loans typically offer:

• Lower interest rates

• Funds disbursed directly to approved contractors (like Hamid and Sons Interior)

• Loan limits of up to 6x your monthly income or S$30,000

• Repayment periods of 1 to 5 years

These loans are meant for actual renovation work like flooring, tiling, wiring, plumbing, and built-in carpentry. Items like furniture and appliances aren’t covered under most renovation loan terms.

2. Why Consider a Renovation Loan?

At Hamid and Sons Interior Design, we’ve worked with hundreds of homeowners who use renovation loans to ease financial strain while achieving their dream interiors. Benefits include:

• Competitive interest rates

• Structured disbursement that aligns with renovation stages

• Lower upfront financial pressure

• Options for eco-friendly features with better rates

When used wisely, renovation loans help you stay on track with your design vision while reducing the risk of budget overruns.

3. Example

4. Structure (Using DBS for Reference)

DBS is a popular bank used by many of our clients. Here’s a general idea of how their renovation loans work:

Detail	Description
Interest Rate	From 5.08% p.a. (effective ~6.16%)
Loan Limit	Up to 6x monthly salary or S$30,000
Tenure	1 to 5 years
Processing Fee	2% of loan amount + 1% insurance
Disbursement	Paid directly to us in stages

DBS sometimes offers special rates (e.g., 3.88% p.a. for loans over S$20,000 with 5-year tenure). Always check directly with your chosen bank for the latest details.

4. How Much Can You Borrow?

Most banks in Singapore offer renovation loans up to S$30,000 or 6 times your monthly income, whichever is lower. For example, if your monthly income is S$5,000, you could borrow up to S$30,000 with a tenure of 3 to 5 years.

5. What You Need to Apply

If you plan to engage us for your renovation, we’ll help you prepare everything you need for a smooth loan application. Here’s what banks typically ask for:

1. NRIC (front and back)

2. Latest income documents (payslips, CPF statements)

3. Renovation quotation from Hamid and Sons Interior Design (HDB-registered contractor)

4. Proof of home ownership (e.g., HDB letter, tenancy agreement)

5. Completed application form (usually digital)

We’ll provide an official, itemised quotation that complies with all bank requirements.

6. How Hamid and Sons Interior Supports Your Loan Application

We are HDB-registered and ISO 9001 certified, which meets the eligibility requirements for all major renovation loans in Singapore. When you choose us, you get:

• A bank-compliant renovation quote

• Transparent scope of work

• Milestone planning for stage-based disbursements

• Fast response for any documentation updates banks may request

We also offer quotes within 3–5 days to help you get started fast.

Real-World Example: HDB 3-Room Transformation

Client Profile: Young couple with S$6,000/month household income

Renovation Scope: Full makeover including open layout, smart storage, eco-friendly materials

Loan: S$30,000 through DBS at 3.88% p.a. (5-year tenure)

Monthly Repayment: Approx. S$555

Result:

• Design and execution by Hamid and Sons Interior Design

• Stage-based disbursement aligned with project milestones

• Eco features qualified for rate perks

• Smooth communication between client, bank, and contractor

Before You Apply: Smart Tips from Our Team

• Decide what you need and set a realistic budget

• Request at least two quotes for comparison

• Ask us about cost-saving design alternatives

• Check if your bank has any promotions or eco-rebates

• Keep a 10% buffer for unexpected changes

Conclusion: Renovate with Confidence

A renovation loan can help you bring your vision to life without compromising your financial stability. At Hamid and Sons Interior, we combine expert design with financial insight to make your home transformation stress-free.

Ready to begin? Get in touch for a no-obligation quote today. We’ll help you plan smart and connect you with trusted bank options to fund your dream home.

Visit us at Hamid and Sons Interior to start your journey.