How to Plan and Fund Your Perfect Home Renovation in SG

Thinking about upgrading your home? Whether you're renovating a resale flat or redesigning your new BTO unit, one of the most common challenges is managing your renovation budget. A smart way to ease that financial load is by applying for a renovation loan.

In this article, we’ll explore the different types of renovation loans available, what to consider before applying, and how to choose the right option for your home renovation SG journey. With proper planning, you can build your dream space without overstretching your finances.

What Is a Renovation Loan?

A renovation loan is a type of personal financing offered by banks to help homeowners cover the costs of home improvements. Unlike general personal loans, renovation loans are specifically meant for home-related works like tiling, flooring, painting, carpentry, electrical upgrades, and built-in furniture.

These loans usually come with lower interest rates than regular personal loans, but they also have specific usage restrictions. Most banks in Singapore will require you to provide a quotation from a licensed contractor before disbursing the funds.

Who Is Eligible for a Renovation Loan in Singapore?

To apply for a renovation loan, you usually need to meet a few basic conditions:

• Be a Singapore Citizen or Permanent Resident

• Aged between 21 and 65 years old

• Have a minimum annual income (requirements differ by bank, typically around $24,000 and above)

Most banks also allow joint applications, such as between spouses or immediate family members, especially if you are co-owners of the home.

Top Renovation Loan Providers in Singapore

Several banks in Singapore offer renovation loans with different packages. Here’s a quick overview:

DBS Renovation Loan

According to DBS Bank, their renovation loan allows you to borrow up to six times your monthly income or a maximum of $30,000, whichever is lower. The interest rate starts at 4.88% per annum, and the loan tenure can range from 1 to 5 years.

OCBC Renovation Loan

OCBC offers competitive interest rates, starting from 4.18% per annum. The maximum loan amount is also $30,000 or six times your monthly salary. As OCBC explains, the loan is strictly for home renovation use and will be disbursed directly to your contractor.

Maybank Renovation Loan

Maybank provides renovation loans with tenures of up to 5 years. They also offer the option to combine your renovation loan with a personal loan if needed.

GXS FlexiLoan

New in the market, the GXS FlexiLoan offers a flexible line of credit, enabling you to draw down funds as needed, which is ideal for paying contractors incrementally. Interest rates start from 2.99% p.a. (EIR from 5.65% p.a.), and you only pay interest on the amount you use, with no early repayment fees.

Each bank has its own set of terms, so be sure to read the fine print and compare your options before deciding.

What to Consider Before Borrowing

Before applying for a renovation loan, ask yourself the following:

• How much do I really need? Avoid over-borrowing. Only take a loan that matches your budget and renovation scope.

• Can I afford the monthly repayments? Check your monthly cash flow and be honest about your financial capacity.

• What are the additional costs? Look out for processing fees, insurance costs, and early repayment penalties.

• Is the contractor HDB-licensed or certified? Most banks require you to use approved contractors for disbursement.

Planning ahead helps you avoid financial strain during your home renovation SG journey.

Tips to Maximise Your Renovation Loan

Here are some ways to make the most of your loan:

• Get detailed, itemised quotations from your contractor or interior designer

• Compare loan offers from at least two or three banks

• Don’t borrow the full amount just because you qualify for it

• Prioritise essential works (like plumbing and structural repairs) first

• Ask your designer about possible installment plans to ease your cash flow

Alternatives to a Renovation Loan

If a renovation loan isn’t ideal for your situation, you can consider these alternatives:

• Personal Loans: Easier to apply for and more flexible, but usually come with higher interest rates.

• CPF Savings: Under certain conditions, CPF funds can be used for specific home upgrades, such as in the case of older flats under upgrading programmes.

• Cash or Instalment Plans: Some contractors offer in-house instalment plans or allow credit card payments with 0% interest over a set period.

Final Thoughts

A renovation loan can be a valuable tool when planning your home renovation SG, especially when used with care and proper planning. From knowing your eligibility to choosing the right bank and budgeting smartly, each step matters.

With the right loan and the right design partner, you can create a beautiful and functional home without unnecessary stress. At The Design Factory, we’re committed to helping you achieve that—one smart design decision at a time.

How We at The Design Factory Help You Renovate Smartly

At The Design Factory, we understand that renovating your dream home is both an emotional and financial investment. That’s why we guide our clients in planning their renovations wisely—even when it comes to financing.

We work directly with loancompare.sg for transparent and itemised quotations, so you’ll know exactly where your money is going. Our staged payment schedules are also designed to match your bank loan disbursements, so you don’t have to worry about cash flow issues.

If you’re unsure which renovation loan to choose or how much to budget for your home renovation SG project, don’t worry. We’re here to assist you every step of the way. Reach out to us for a no-obligation consultation—we’re more than happy to help.