Renovation loan rates start from approximately 3.07% EIR, significantly lower than personal loan rates of 7% to 10% EIR.
Renovating a home in Singapore can cost anywhere from $30,000 for a basic 3 room BTO to over $100,000 for an extensively customised resale flat or condo. A
renovation loan offers a convenient financing solution with lower interest rates compared to personal loans making it easier to fund structural works like
hacking, carpentry, flooring and electrical without depleting savings.
This page explains how renovation loans work, the key differences compared to personal loans, eligibility requirements, and how funds are disbursed directly to contractors. It also covers typical renovation costs by property type and flat size, helping homeowners plan their budget before committing to a loan.
A renovation loan is a specialised loan designed to finance home improvement works such as hacking, tiling, carpentry, painting, electrical and plumbing. Unlike personal loans, renovation loans are disbursed directly to the contractor not to the borrower. Interest rates are typically lower than personal loans 3%-5.5% EIR vs 7%-10% for personal loans but usage is restricted to approved renovation works only. Furniture, appliances and soft furnishings are generally not covered.
Foreigners are generally not eligible for renovation loans from banks Minimum loan amount is typically $10,000-$15,000 depending on the bank.Unlike personal loans, renovation loan funds are paid directly to the contractor either as a lump sum or in instalments based on renovation milestones.
A cashier's order is issued in the contractor's name. Some banks may conduct site visits after disbursement to verify that funds were used for the stated renovation works.
This disbursement method means borrowers cannot use the funds for furniture, appliances or other non renovation related expenses.
Renovation loan rates start from approximately 3.07% EIR, significantly lower than personal loan rates of 7% to 10% EIR.
Borrow up to 6 times monthly income or $30,000 whichever is lower. Some banks offer up to $50,000 for higher income earners.
Repayment periods range from 1 to 5 years. Longer tenure means lower monthly payments but more total interest.
Funds are paid directly to the contractor via cashier's order not to the borrower. Ensures funds are used for renovation.
Renovation loans offer lower interest rates from 3% to 5.5% EIR vs 7% to 10% for personal loans but they come with restrictions. Funds go directly to the contractor, usage is limited to approved structural works and applicants must be property owners or family members. For straightforward renovation projects under $30,000 handled by a single contractor, a renovation loan is usually the more cost effective choice.
However, if the budget exceeds $30,000 or if funds are also needed for furniture, appliances, or temporary accommodation, a personal loan offers more flexibility despite the higher rate.
Many homeowners use both, a renovation loan for contractor works and a personal loan to cover everything else. 
All lenders verified against Ministry of Law registry. Last updated: April 28 2026.
Both can fund home improvements, but they work very differently.
| Renovation Loan | Personal Loan | |
|---|---|---|
| Purpose | Approved renovation works only (hacking, carpentry, tiling, electrical, plumbing) | Any purpose such as renovation, furniture, appliances, accommodation, emergencies |
| Maximum Amount | Up to 6 times monthly income or $30,000 (whichever is lower) | Up to 8 to 10 times monthly income or $200,000+ |
| Interest Rate (EIR) | 3.07% to 5.50% p.a. | 7% to 10%+ p.a. |
| Disbursement | Directly to contractor (cashier's order) | To borrower's bank account |
| Eligibility | Property owner or immediate family member, Singaporean/PR only | Anyone meeting income criteria, including foreigners |
| Minimum Income | $24,000 per year | $20,000 to $30,000 per year |
| Documents Required | NRIC, income proof, property ownership proof, contractor quotation | NRIC, income proof |
| Approval Time | 3 to 7 working days | 1 to 3 working days |
| Tenure | 1 to 5 years | 1 to 7 years |
| Processing Fee | 0.5% to 1% of loan amount | 1% to 4% of loan amount |
| Can Cover Furniture/Appliances? | No | Yes |
| Best For | Structural renovation works under $30,000 | Larger budgets, flexibility, non property owners |
Renovation budget is under $30,000
Works involve structural items (hacking, carpentry, tiling, flooring)
Working with a single main contractor
Wanting the lowest possible interest rate
Comfortable with funds going directly to contractor
Property owner or immediate family member
Renovation budget exceeds $30,000
Need funds for furniture, appliances or soft furnishings
Renovating a property not owned by applicant
Wanting flexibility to manage payments to multiple vendors
Need funds quickly same day approval available Foreigner or not meeting renovation loan criteria| Basic Renovation | Mid-Range | High-End/Custom | |
|---|---|---|---|
| 3 Room HDB BTO | $25,000 to $35,000 | $35,000 to $50,000 | $50,000 to $70,000 |
| 4 Room HDB BTO | $35,000 to $45,000 | $45,000 to $65,000 | $65,000 to $90,000 |
| 5 Room HDB BTO | $45,000 to $55,000 | $55,000 to $75,000 | $75,000 to $110,000 |
| 3 Room HDB Resale | $35,000 to $50,000 | $50,000 to $70,000 | $70,000 to $100,000 |
| 4 Room HDB Resale | $45,000 to $60,000 | $60,000 to $85,000 | $85,000 to $120,000 |
| 5 Room HDB Resale | $55,000 to $75,000 | $75,000 to $100,000 | $100,000 to $150,000 |
| Condo (2 to 3 BR) | $50,000 to $70,000 | $70,000 to $100,000 | $100,000 to $180,000 |
| Landed Property | $100,000 to $150,000 | $150,000 to $250,000 | $250,000+ |
BTO flats cost less to renovate as most essentials are already in place. Resale flats often require hacking, rewiring and replacement
of aging
fixtures significantly increasing costs.
Singapore Citizen or Permanent Resident Aged 21 to 65 years Minimum annual income of $24,000 (main applicant) Minimum annual income of $12,000 (joint applicant, if any) Employed (salaried or self-employed) Applicant must be the property owner, OR Immediate family member (parent, spouse, child, sibling) residing in the property with owner's consent Property can be HDB (BTO or resale), condo or landed Some banks require property to be fully paid or have existing mortgage with the same bank
Apply in under 30 seconds using Singpass or our simple multi-step form and select the exact amount you need.
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When your dream home aspirations surpass your savings, securing a renovation loan emerges as a strategic solution.
Ever wondered what the Effective Interest Rate (EIR) means for personal loans?
If you’re a foreigner or expat living in Singapore, you might find yourself in situations where you’ll need urgent cas
Need cash urgently? Consider a personal loan from a bank to relieve your situation.
A renovation loan is not the only way to fund home improvements. For borrowers which need more flexibility such as funds for furniture, appliances or expenses beyond $30,000 a personal loan may be a better fit despite higher interest rates.
Homeowners considering a new property purchase can compare home loan rates from 15+ banks while existing homeowners may explore refinancing to access home equity through cash-out refinancing potentially freeing up funds for renovation without taking a separate loan.
For quick calculations on monthly repayments and total interest use our renovation loan calculator which provides estimates based on loan amount and tenure.
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Trust the original! #roshi #singapore #lending #borrowing
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