Revitalise Your Home:
Best Renovation Loans in Singapore
When looking for a renovation loan in Singapore, the best option for you largely depends on your specific needs, such as the loan amount, your credit profile, and your relationship with a particular bank. Here are the best renovation loan options available from major banks in Singapore, focusing on key factors such as Effective Interest Rate (EIR), fees, and special features.
Disclaimer: Interest rates and promotions are subject to change and are accurate based on available public information. The final rate you receive may vary based on your personal credit assessment.
DBS/POSB Renovation Loan
Annual Interest Rate
From 5.88% p.a. (promotional rate of 5.08% p.a. till 30 Sep 2025; EIR 6.16% p.a.)
EIR
From 6.16% p.a.
Processing Fees
2% of approved loan amount
- Borrow up to 6x your monthly income or S$30,000 (whichever is lower)
- Flexible repayment period of up to 5 years
- Loan disbursed via Cashier’s Orders (up to 4, valid for 6 months)
- DBS and POSB Home Loan customers can enjoy an even lower rate of 3.38% p.a. (EIR 4.49% p.a.)
- Comprehensive insurance coverage for outstanding loan balance
Eligibility
- Aged 21 to 65 years old
- Singapore Citizens and Permanent Residents
- Minimum annual income of S$24,000
- Applicant must be the property owner or an immediate family member
Fees
- Processing fee: 2% of approved loan amount
- Early repayment fee: 1% of outstanding loan amount
- Late payment fee: SS$35
- Insurance premium: 1% of approved loan amount
- Cashier’s Order: first order is free; S$5 for every subsequent order
Features
- Borrow up to 6x your monthly income or S$30,000 (whichever is lower)
- Flexible repayment period of up to 5 years
- Loan disbursed via Cashier’s Orders (up to 4, valid for 6 months)
- DBS and POSB Home Loan customers can enjoy an even lower rate of 3.38% p.a. (EIR 4.49% p.a.)
- Comprehensive insurance coverage for outstanding loan balance
Loan details
Eligibility
- Aged 21 to 65 years old
- Singapore Citizens and Permanent Residents
- Minimum annual income of S$24,000
- Applicant must be the property owner or an immediate family member
Fees
- Processing fee: 2% of approved loan amount
- Early repayment fee: 1% of outstanding loan amount
- Late payment fee: SS$35
- Insurance premium: 1% of approved loan amount
- Cashier’s Order: first order is free; S$5 for every subsequent order
DBS/POSB Renovation Loan
Annual Interest Rate
From 5.88% p.a. (promotional rate of 5.08% p.a. till 30 Sep 2025; EIR 6.16% p.a.)
EIR
From 6.16% p.a.
Processing Fees
2% of approved loan amount
- Borrow up to 6x your monthly income or S$30,000 (whichever is lower)
- Flexible repayment period of up to 5 years
- Loan disbursed via Cashier’s Orders (up to 4, valid for 6 months)
- DBS and POSB Home Loan customers can enjoy an even lower rate of 3.38% p.a. (EIR 4.49% p.a.)
- Comprehensive insurance coverage for outstanding loan balance
Eligibility
- Aged 21 to 65 years old
- Singapore Citizens and Permanent Residents
- Minimum annual income of S$24,000
- Applicant must be the property owner or an immediate family member
Fees
- Processing fee: 2% of approved loan amount
- Early repayment fee: 1% of outstanding loan amount
- Late payment fee: SS$35
- Insurance premium: 1% of approved loan amount
- Cashier’s Order: first order is free; S$5 for every subsequent order
Features
- Borrow up to 6x your monthly income or S$30,000 (whichever is lower)
- Flexible repayment period of up to 5 years
- Loan disbursed via Cashier’s Orders (up to 4, valid for 6 months)
- DBS and POSB Home Loan customers can enjoy an even lower rate of 3.38% p.a. (EIR 4.49% p.a.)
- Comprehensive insurance coverage for outstanding loan balance
Loan details
Eligibility
- Aged 21 to 65 years old
- Singapore Citizens and Permanent Residents
- Minimum annual income of S$24,000
- Applicant must be the property owner or an immediate family member
Fees
- Processing fee: 2% of approved loan amount
- Early repayment fee: 1% of outstanding loan amount
- Late payment fee: SS$35
- Insurance premium: 1% of approved loan amount
- Cashier’s Order: first order is free; S$5 for every subsequent order
DBS/POSB Eco-Aware Renovation Loan
Annual Interest Rate
From 5.68% p.a. (promotional rate of 4.88% p.a. till 30 Sep 2025; EIR 5.96% p.a.)
EIR
From 5.96% p.a.
Processing Fees
2% of approved loan amount
- Specifically for eco-friendly home renovations (e.g. energy-saving appliances, water-efficient fittings, eco-certified materials)
- Borrow up to 6x your monthly income or S$30,000 (whichever is lower)
- Flexible repayment period of up to 5 years
- Loan disbursed via Cashier’s Orders (up to 4, valid for 6 months)
- Comprehensive insurance coverage for outstanding loan balance
Eligibility
- Aged 21 to 65 years old
- Singapore Citizens and Permanent Residents
- Minimum annual income of S$24,000
- Applicant must be the property owner or an immediate family member
- Renovation works must include at least 6 out of 10 items in the “Eco-aware Renovation Checklist”
Fees
- Processing fee: 2% of approved loan amount
- Early repayment fee: 1% of outstanding loan amount
- Late payment fee: SS$35
- Insurance premium: 1% of approved loan amount
- Cashier’s Order: first order is free; S$5 for every subsequent order
Features
- Specifically for eco-friendly home renovations (e.g. energy-saving appliances, water-efficient fittings, eco-certified materials)
- Borrow up to 6x your monthly income or S$30,000 (whichever is lower)
- Flexible repayment period of up to 5 years
- Loan disbursed via Cashier’s Orders (up to 4, valid for 6 months)
- Comprehensive insurance coverage for outstanding loan balance
Loan details
Eligibility
- Aged 21 to 65 years old
- Singapore Citizens and Permanent Residents
- Minimum annual income of S$24,000
- Applicant must be the property owner or an immediate family member
- Renovation works must include at least 6 out of 10 items in the “Eco-aware Renovation Checklist”
Fees
- Processing fee: 2% of approved loan amount
- Early repayment fee: 1% of outstanding loan amount
- Late payment fee: SS$35
- Insurance premium: 1% of approved loan amount
- Cashier’s Order: first order is free; S$5 for every subsequent order
DBS/POSB Eco-Aware Renovation Loan
Annual Interest Rate
From 5.68% p.a. (promotional rate of 4.88% p.a. till 30 Sep 2025; EIR 5.96% p.a.)
EIR
From 5.96% p.a.
Processing Fees
2% of approved loan amount
- Specifically for eco-friendly home renovations (e.g. energy-saving appliances, water-efficient fittings, eco-certified materials)
- Borrow up to 6x your monthly income or S$30,000 (whichever is lower)
- Flexible repayment period of up to 5 years
- Loan disbursed via Cashier’s Orders (up to 4, valid for 6 months)
- Comprehensive insurance coverage for outstanding loan balance
Eligibility
- Aged 21 to 65 years old
- Singapore Citizens and Permanent Residents
- Minimum annual income of S$24,000
- Applicant must be the property owner or an immediate family member
- Renovation works must include at least 6 out of 10 items in the “Eco-aware Renovation Checklist”
Fees
- Processing fee: 2% of approved loan amount
- Early repayment fee: 1% of outstanding loan amount
- Late payment fee: SS$35
- Insurance premium: 1% of approved loan amount
- Cashier’s Order: first order is free; S$5 for every subsequent order
Features
- Specifically for eco-friendly home renovations (e.g. energy-saving appliances, water-efficient fittings, eco-certified materials)
- Borrow up to 6x your monthly income or S$30,000 (whichever is lower)
- Flexible repayment period of up to 5 years
- Loan disbursed via Cashier’s Orders (up to 4, valid for 6 months)
- Comprehensive insurance coverage for outstanding loan balance
Loan details
Eligibility
- Aged 21 to 65 years old
- Singapore Citizens and Permanent Residents
- Minimum annual income of S$24,000
- Applicant must be the property owner or an immediate family member
- Renovation works must include at least 6 out of 10 items in the “Eco-aware Renovation Checklist”
Fees
- Processing fee: 2% of approved loan amount
- Early repayment fee: 1% of outstanding loan amount
- Late payment fee: SS$35
- Insurance premium: 1% of approved loan amount
- Cashier’s Order: first order is free; S$5 for every subsequent order
Maybank Renovation Loan (For Maybank Home Loan Customers Only)
Annual Interest Rate
From 4.08% p.a.
EIR
NA
Processing Fees
2% of loan amount or minimum S$200, whichever is higher
- Only available to Maybank Private Home Loan and Maybank HDB Home Loan customers
- Hassle-free approval with special interest rates starting from 4.08% p.a.
- HDB Home Loan customers can enjoy an even lower promotional rate of 2.50% p.a. for the first year
- Borrow up to 6x of monthly income or S$30,000, whichever is lower
- Flexible loan tenures of up to 5 years
Eligibility
- Must be an existing Maybank Home Loan customer
- Singapore Citizen or Permanent Resident
- Aged 21-55 (at loan maturity)
- Single borrowers must earn at least S$30,000 annually and own the property
- Joint borrowers must earn a combined income of at least S$48,000 (main applicant ≥ S$30,000), and be an immediate family member of the main applicant
Fees
- Processing Fee: 2% of loan amount or minimum S$200, whichever is higher
- Cancellation Fee: 2% of the unutilised or cancelled loan amount or minimum S$100, whichever is higher
- Early Repayment Fee: 2% of remaining loan amount or minimum S$100, whichever is higher
- Late Payment Fee: S$60
Features
- Only available to Maybank Private Home Loan and Maybank HDB Home Loan customers
- Hassle-free approval with special interest rates starting from 4.08% p.a.
- HDB Home Loan customers can enjoy an even lower promotional rate of 2.50% p.a. for the first year
- Borrow up to 6x of monthly income or S$30,000, whichever is lower
- Flexible loan tenures of up to 5 years
Loan details
Eligibility
- Must be an existing Maybank Home Loan customer
- Singapore Citizen or Permanent Resident
- Aged 21-55 (at loan maturity)
- Single borrowers must earn at least S$30,000 annually and own the property
- Joint borrowers must earn a combined income of at least S$48,000 (main applicant ≥ S$30,000), and be an immediate family member of the main applicant
Fees
- Processing Fee: 2% of loan amount or minimum S$200, whichever is higher
- Cancellation Fee: 2% of the unutilised or cancelled loan amount or minimum S$100, whichever is higher
- Early Repayment Fee: 2% of remaining loan amount or minimum S$100, whichever is higher
- Late Payment Fee: S$60
Maybank Renovation Loan (For Maybank Home Loan Customers Only)
Annual Interest Rate
From 4.08% p.a.
EIR
NA
Processing Fees
2% of loan amount or minimum S$200, whichever is higher
- Only available to Maybank Private Home Loan and Maybank HDB Home Loan customers
- Hassle-free approval with special interest rates starting from 4.08% p.a.
- HDB Home Loan customers can enjoy an even lower promotional rate of 2.50% p.a. for the first year
- Borrow up to 6x of monthly income or S$30,000, whichever is lower
- Flexible loan tenures of up to 5 years
Eligibility
- Must be an existing Maybank Home Loan customer
- Singapore Citizen or Permanent Resident
- Aged 21-55 (at loan maturity)
- Single borrowers must earn at least S$30,000 annually and own the property
- Joint borrowers must earn a combined income of at least S$48,000 (main applicant ≥ S$30,000), and be an immediate family member of the main applicant
Fees
- Processing Fee: 2% of loan amount or minimum S$200, whichever is higher
- Cancellation Fee: 2% of the unutilised or cancelled loan amount or minimum S$100, whichever is higher
- Early Repayment Fee: 2% of remaining loan amount or minimum S$100, whichever is higher
- Late Payment Fee: S$60
Features
- Only available to Maybank Private Home Loan and Maybank HDB Home Loan customers
- Hassle-free approval with special interest rates starting from 4.08% p.a.
- HDB Home Loan customers can enjoy an even lower promotional rate of 2.50% p.a. for the first year
- Borrow up to 6x of monthly income or S$30,000, whichever is lower
- Flexible loan tenures of up to 5 years
Loan details
Eligibility
- Must be an existing Maybank Home Loan customer
- Singapore Citizen or Permanent Resident
- Aged 21-55 (at loan maturity)
- Single borrowers must earn at least S$30,000 annually and own the property
- Joint borrowers must earn a combined income of at least S$48,000 (main applicant ≥ S$30,000), and be an immediate family member of the main applicant
Fees
- Processing Fee: 2% of loan amount or minimum S$200, whichever is higher
- Cancellation Fee: 2% of the unutilised or cancelled loan amount or minimum S$100, whichever is higher
- Early Repayment Fee: 2% of remaining loan amount or minimum S$100, whichever is higher
- Late Payment Fee: S$60
Other financial institutions
Annual Interest Rate
Up to 48% p.a.
Processing Fees
Up to 10% of the loan principal
Loan Tenure
Up to 2 years
- Fast loan approval
- No credit score restrictions
- Same-day disbursement available
- No minimum loan amount
- Borrow up to 6x your monthly income if you earn at least S$20,000/year, open to all nationalities
- Maximum loan amount of S$3,000 for Singaporeans/PRs earning below S$20,000/year
- Maximum loan amount of S$3,000 for foreigners with annual income of at least S$10,000 but less than S$20,000; S$500 for foreigners who earn less than S$10,000/year
Eligibility
- Aged 18 and above
- Must have a stable source of income
Fees
- Processing fee: Up to 10% of the loan principal
- Late payment fee: Up to S$60 per month for overdue payments
- No early repayment fees
Features
- Fast loan approval
- No credit score restrictions
- Same-day disbursement available
- No minimum loan amount
- Borrow up to 6x your monthly income if you earn at least S$20,000/year, open to all nationalities
- Maximum loan amount of S$3,000 for Singaporeans/PRs earning below S$20,000/year
- Maximum loan amount of S$3,000 for foreigners with annual income of at least S$10,000 but less than S$20,000; S$500 for foreigners who earn less than S$10,000/year
Loan details
Eligibility
- Aged 18 and above
- Must have a stable source of income
Fees
- Processing fee: Up to 10% of the loan principal
- Late payment fee: Up to S$60 per month for overdue payments
- No early repayment fees
Other financial institutions
Annual Interest Rate
Up to 48% p.a.
Processing Fees
Up to 10% of the loan principal
Loan Tenure
Up to 2 years
- Fast loan approval
- No credit score restrictions
- Same-day disbursement available
- No minimum loan amount
- Borrow up to 6x your monthly income if you earn at least S$20,000/year, open to all nationalities
- Maximum loan amount of S$3,000 for Singaporeans/PRs earning below S$20,000/year
- Maximum loan amount of S$3,000 for foreigners with annual income of at least S$10,000 but less than S$20,000; S$500 for foreigners who earn less than S$10,000/year
Eligibility
- Aged 18 and above
- Must have a stable source of income
Fees
- Processing fee: Up to 10% of the loan principal
- Late payment fee: Up to S$60 per month for overdue payments
- No early repayment fees
Features
- Fast loan approval
- No credit score restrictions
- Same-day disbursement available
- No minimum loan amount
- Borrow up to 6x your monthly income if you earn at least S$20,000/year, open to all nationalities
- Maximum loan amount of S$3,000 for Singaporeans/PRs earning below S$20,000/year
- Maximum loan amount of S$3,000 for foreigners with annual income of at least S$10,000 but less than S$20,000; S$500 for foreigners who earn less than S$10,000/year
Loan details
Eligibility
- Aged 18 and above
- Must have a stable source of income
Fees
- Processing fee: Up to 10% of the loan principal
- Late payment fee: Up to S$60 per month for overdue payments
- No early repayment fees
Table of Contents
Renovation Loans in Singapore 101
What is a renovation loan?
A renovation loan is a type of unsecured loan designed to help homeowners finance home improvement and home renovation projects. They are intended to cover renovation works, including carpentry, flooring, electrical wiring, and painting.
How do renovation loans work?
A renovation loan is a specialised type of loan designed to finance home renovation and improvement projects. Its main difference from a personal loan lies in how the funds are paid out.
Instead of the money being given directly to you in a lump sum, the lender (usually a bank) will issue a cashier’s order or make a direct payment to your appointed contractor. This is done to ensure the funds are used exclusively for the specified renovation work outlined in your contractor’s quotation. This direct-to-contractor disbursement is one reason why renovation loans may come with a lower interest rate than personal loans.
How much can you borrow on a renovation loan?
Most banks in Singapore cap the maximum amount you can borrow for a renovation loan at $30,000 or six times your monthly income, whichever is lower. This amount is also subject to your contractor’s quotation, as the loan cannot exceed the total cost of the renovation work. The maximum loan amount you can borrow usually depends on your income and creditworthiness.
Where can you get a renovation loan in Singapore?
Major banks in Singapore that provide renovation loans include DBS, POSB, and Maybank. Some alternative legal lenders offer renovation loans, too. When comparing your renovation loan options, pay extra attention to the effective interest rate (EIR), which consists of all fees and charges, rather than just the advertised flat rate.
What is the typical renovation loan interest rate in Singapore?
The advertised renovation loan interest rates in Singapore can range from approximately 2.88% to 5.88% per annum (p.a.). The Effective Interest Rate (EIR), which includes fees and other charges, provides a more accurate reflection of the total cost — it is usually higher, ranging from approximately 4% to 10% p.a. Be that as it may, the final interest rate you receive will also be dependant on your personal credit profile, the loan amount, and the chosen tenure.
What’s the loan tenure of a renovation loan?
The typical loan tenure for a renovation loan in Singapore ranges from one to five years. While some renovation loan providers may offer slightly longer tenures, five years is the most common maximum.
It’s essential to choose a loan tenure that aligns with your financial capacity — a shorter tenure will result in higher monthly instalments but lower total interest paid. In comparison, a longer tenure will reduce your monthly payments but increase the overall cost of the loan.
What can you use a renovation loan for in Singapore?
Renovation loans are specifically for fixed and permanent home improvements. Permitted uses include:
- Structural alterations: Modifying the home’s layout, such as tearing down existing walls or building new ones.
- Flooring and tiling: Installing or replacing floors and tiles.
- Electrical and wiring works: Installing new electrical systems, lighting, and power points.
- Painting and decorating: Repainting walls or installing wallpaper.
- Built-in carpentry: Installing permanent fixtures like built-in cabinets and wardrobes.
- Basic bathroom fittings: Installing fixtures like bathtubs, sinks, and toilets.
Crucially, renovation loans cannot be used to finance loose furniture, home appliances, or other movable items. For those types of expenses, consider using a personal loan.
What are the benefits of taking a renovation loan?
The key benefits of a renovation loan include:
Lower interest rates: Compared to personal loans, renovation loans may have more attractive interest rates because they are for a specific, verifiable purpose, which reduces the lender’s risk.
Unsecured financing: Renovation loans are unsecured, meaning you don’t need to put your assets up as collateral. This protects your property in the event of repayment difficulties.
Flexible repayment terms: With a range of loan tenures available, you can pick a repayment plan that fits your budget.
Disbursement control: Funds are disbursed directly to your renovation contractor, ensuring the money is used for its intended purpose and providing both the homeowner and the lender with peace of mind.
Who Can Get a Renovation Loan in Singapore?
What are the eligibility criteria for a renovation loan?
Each renovation loan provider has its own eligibility criteria, but standard requirements include being a Singaporean Citizen or Singapore Permanent Resident (SPR), having stable employment, having a consistent source of income, and meeting the renovation loan provider’s credit assessment criteria.
How to apply for a renovation loan in Singapore?
The application process for a renovation loan in Singapore typically involves these steps:
- Get a detailed contractor’s quotation: You will need an itemised quotation from your renovation contractor. This document is crucial as it justifies the loan amount and clearly states what the funds will be used for.
- Determine your loan needs: Based on the quotation, decide how much you need to borrow and what you can comfortably afford for monthly repayments. You can use online calculators provided by banks to help with this.
- Check eligibility and prepare documents: Ensure you meet the renovation loan provider’s criteria (e.g., minimum income, age, citizenship) and gather all necessary documents.
- Submit the application: You can apply online, often using Singpass to auto-fill your details, or by visiting a bank branch in person.
- Wait for approval and disbursement: The bank will review your application and documents. Once approved, the loan amount will be disbursed to your contractor in a cashier’s order or via direct transfer, and you will begin your monthly repayments.
What documents are required to apply for renovation loans?
When applying for a renovation loan, you are required to provide:
- Your NRIC (for identification)
- Proof of income (e.g., latest payslips, CPF statements, or Income Tax Notice of Assessment)
- Proof of property ownership
- A detailed, signed quotation from your renovation contractor comprising a breakdown of the renovation costs, and other relevant details.
Renovation Loans in Singapore: HDB vs Private Housing
Renovation loans in Singapore are available for both HDB flats and private properties. While the core features of the loan (e.g., direct disbursement to the contractor) remain the same, there are some subtle but important differences to consider.
Here is a table comparing renovation loans for HDB vs. private housing:
| Renovation Loan for HDB Flat | Renovation Loan for Private Property | |
|---|---|---|
| Eligibility | Applicants must be the owner of an HDB flat and be a Singapore Citizen or Permanent Resident. | Applicants must be the owner of the private property and be a Singapore Citizen or Permanent Resident. |
| Maximum Loan Amount | Typically capped at $30,000 or 6 times your monthly income, whichever is lower. The loan amount cannot exceed the value of the renovation contract. | Typically capped at $30,000 or 6 times your monthly income, whichever is lower. The loan amount cannot exceed the value of the renovation contract. |
| Interest Rate | Rates are competitive and vary between banks. Some banks may offer slightly different rates or promotions for HDB vs. private property owners, though this is not a universal rule. | Rates are competitive and vary between banks. Some banks may offer specific packages for private property owners, such as a construction loan for major reconstruction. |
| Permits & Regulations | Mandatory. You must obtain a renovation permit from the HDB before starting any works. This ensures the renovation complies with HDB’s strict safety and structural guidelines. | Mandatory for any structural works (e.g., hacking walls, major plumbing). You must obtain approval from the Building and Construction Authority (BCA) or relevant management corporation (MCST) for any such works. |
| Approved Contractors | For some works, HDB may require you to engage a contractor registered under the HDB Registered Renovation Contractors’ Scheme. This provides a layer of assurance. | You are generally not restricted to a specific list of contractors, but it is highly recommended to engage a contractor who is experienced with private property renovations and who is properly licensed. |
| Type of Property | HDB flats, including new BTOs and resale flats. | Private residential properties, including condominiums and landed houses. |
| Additional Considerations | For an older resale HDB flat, the renovation cost can be higher due to the need for extensive structural changes, plumbing, and rewiring. Your loan may not cover the full cost. | For private properties, especially landed homes, the scale and cost of renovation can be significantly higher. For massive projects, a bank may offer a “Home Construction Loan” instead of a standard renovation loan, which can provide a larger loan quantum. |
Renovation Loan FAQs
What's the difference between a renovation loan and a personal loan for home renovations?
While both can be used to fund your home makeover, they have key differences that could affect your choice:
Use of Funds: A renovation loan is strictly for fixed, built-in home improvements such as carpentry, flooring, and electrical work. The bank will issue a cashier’s order to your contractor based on their quotation. On the flip side, a personal loan offers much more flexibility — you can use the funds for anything, including buying loose furniture, appliances, or even paying for moving services.
Loan Amount and Tenure: Renovation loans in Singapore are usually capped at $30,000 or six times your monthly income, whichever is lower. Personal loans may offer a higher maximum loan amount, which could be beneficial for more extensive and costly renovations. The loan tenure for renovation loans is typically capped at five years, while some personal loans may offer a longer tenure of up to seven years.
Paperwork: Applying for a renovation loan requires extra documentation, such as a detailed quotation from your contractor and proof of property ownership. Personal loans have a simpler application process, as you don’t need to justify how you intend to use the funds.
Do renovation loans offer better interest rates than personal loans?
Renovation loans typically have lower interest rates and a lower Effective Interest Rate (EIR) than personal loans. This is because the funds are disbursed directly to your contractor, which lowers the risk for the lender.
What are the best renovation loans in Singapore?
When evaluating which renovation loan is “best” in Singapore, the answer depends on your individual circumstances, such as your credit score, the amount you need to borrow, and your existing banking relationships. However, you can make an informed decision by carefully comparing the offers from major banks.