Bugis Credit Pte Ltd is a licensed moneylender (License No. 27/2022) listed in the Registry of Moneylenders, under the Ministry of Law in Singapore.

Which Is The Best Renovation Loan To Take In Singapore?

Couple takes renovation loan from licensed moneylender

Are you tired of coming back to the same old abode of yours? Maybe your home needs a new makeover? It’s time to invest in the home renovation project that you have been planning for years now. Even the sky is not the limit when you consider redecorating your home. Talking about facts and figures, the average cost of renovation for a 3-room HDB flat ranges from $32,000 to $42,600 approximately. However, the best way to afford such expenses is to take low-interest renovation loans. There is a host of cheaper deals when it comes to a renovation loan. Read here.

How Can Renovation Loan Make Your Dream Home Come To Life

One constant wish that stays with most of us is to live in our dream home, right? Nevertheless, it’s important to acknowledge that the idea of luxury doesn’t always match the pocket condition. Hence, you have to resort to either a home loan or a renovation loan to finance your project. 

So, how can a renovation loan help finance your redecoration process within a decent budget? For this, you need to estimate the budget for different parameters like raw materials, labour cost and many others. Here we’ll list out some of the most prominent components where you need to invest.

· Wall Paints, Flooring And Tiling

Home renovation view

Renovation on a premium level includes wall demolition and rebuilding. You might need to remove the old floor tiles or dismantle those pale stained walls. Hence, the need for new wall paintings and reinstallations of floor tiles arises. Your low rate Singapore renovation loan can afford the expense of raw materials and colors as well as the labor commission. On a general calculation, all of this will cost around $15,000 which is affordable for a loan amount.

· Electrical And Wiring Tasks

Next comes the most important component of your refurbishing process. We are talking about the electrical and wiring works. For a 3-room HDB apartment, the cost of wiring can reach up to $5000. If you have next-level plans of introducing focus lamps and chandeliers the cost will double immediately. However, this estimate includes electrician charges and materials.

· Carpentry Works

Certainly, your dream house will reflect the aesthetic taste of yours. It has to speak of your societal status and class. A good amount of carpentry crafts can elevate the beauty of your dream home to a huge extent. Hence, you must invest in it. The cost, however, ranges according to the size of your rooms. But, on average, carpentry expenses can reach up to as much as $30,000 including technician charges. This is a major part where your loan with an effective interest will work in your favor.

· Basic Bathroom Fittings

A good renovation is certainly the one with some extra efforts on bathroom furnishing. Obviously, you need to have the basic bathroom fittings. But, you have to spend some extra if you need your loo to be a notch higher in terms of perfection. You can expect the cost to reach up to $2000 that includes plumbing and furnishing. The cost will extend further if you opt for themed elements in your loo.

· Works For External Compounds Within The Home

Apart from all these expenses, you need to count the external compound works in your budget. Obviously, you want your home exterior to look as attractive as the interior. Works related to external compounds mostly include a terrace, fences, a garage, and a garden if you have enough space. Some of you may find it convenient to turn the terrace into a little green lawn. All of it costs around $15,000 or more. Loan money is necessary, hence.

Factors To Consider When Choosing The A Renovation Loan

No matter if you keep your renovation contemporary or minimalistic, traditional or transitional, renovation loans are your ultimate solution for a budget-friendly venture. In general, we have a tendency to dive into personal loans. This can turn out expensive in the long run because personal loans come with higher rates. Therefore, it’s downright convenient to go for a renovation loan. However, you have to keep in mind certain considerations when choosing your renovation loan. Here are some of the factors of a loan. 

· Interest Rate

Needless to say, the primary factor that hits the homeowner’s mind while applying for a loan is the interest rates. In the case of the renovation loans, an effective interest rate plays a huge part. There are some banks that lend you money on a monthly rest interest where they charge on the outstanding balance of the loan. The others calculate the total interest on the whole amount of money you take as a loan. This has to take care of the effective interest rate that you have to consider while applying.

· Loanable Amount

Licensed moneylenders calculating loanable amount in office.

Certainly, there are various ranges of Loanable amount that banks offer. Mostly the factor plays a part when it comes to the minimum amount that you can loan. Some banks provide renovation loans that can reach up to 6 times that of your monthly income. Few banks in Singapore have a minimum Loanable amount of $5000 while some others need it around $10,000. It depends on your monthly expenditure and income on how much you can afford to borrow. We recommend that you make an estimated budget of your plan and then see your preferable loan amount.

· Fees

You are in an illusion if you think the monthly interest is the only amount you are paying. There are several other payable amounts in terms of bank charges. As home loan customers, you are subjected to processing charges, application charges, disbursement charges, and many more. For example, your processing charge is likely to be 1% of the amount for the loan. This may vary from bank to bank. However, you must look closely at the bank terms and conditions before applying for renovation loans.

· Home Loan Provider

If you are planning to save on your renovation budget, try to borrow from your home loan provider. There are several discounts on money borrowing packages if you opt for the same provider as they earn commissions from the deal. Maybank offers a mere 3.8% interest rate on renovation loans if you’re already in their records of home loans. Post Office Savings Bank gives their home loan customers a straight 2.3% interest rate on principal amount.

Where To Apply For Home Renovation Loan In Singapore

However, getting the right deal through your home renovation loan is one of the most daunting tasks you’ll ever perform. If you are a homeowner you must have a fair amount of research before diving into any loan. You must have all the personal documents starting from your Singapore citizenship proof, birth certificate, salary slip, and photo identity proof. These are the official documents that you need to produce while applying for renovation loans. Several banks provide Singapore renovation loans on home renovation projects varying on the interest rates. You must consider these factors to figure out where to apply for home renovation loans.

· Check Loan Comparison Sites

There are several banks in Singapore that offer different terms and conditions for applying. If you are not well aware of the market rates, there is a high chance that you will end up paying extra. Therefore, it is always a wise idea to have a thorough look at the loan comparison sites available on the internet. The time period of the payment ranges from 3 years to 5 years for loan customers. If you are one of the loan customers then try to look for the variable charges and interest rates.

For example, the renovation loan DBS has a minimum total interest. The processing charge is 1% of the loan amount approved. You have to pay a monthly interest of 4.8%. OCBC renovation loan offers ownership of 5 years. You pay 1.5% of the loan amount with a monthly interest rate of 4.18%.

· Check Reviews On Google Or Hire A Loan Advisor

Another way to keep at the pace is to check for reviews on Google. Loads of moneylenders trap you by alluring offers but end up charging you extra. If you are new in the field, there is a host of websites where you can find reviews made by borrowers on the banks. Read them before making your choice.

Moreover, you can seek a loan advisor who will guide you thoroughly on the loan amount and the bank rights reserved. Needless to say, you might need assistance on different parameters of a loan amount and how to apply. 

· Seek trusted Licensed Moneylenders

Here we’ll focus on one of the leading money lending companies for the renovation loan Singapore. If you need an authentic money lending service that will not cost your hands or legs, here is your choice – Bugis Credit is a licensed moneylender – that falls under the Ministry of Law in Singapore. You get a wide range of borrowing options from personal loans, business loans, payday loans, and renovation loans. 

With a lowered monthly interest rate, they assure transparent and loyal customer service. Besides, they assure you with fast loan processing with no extra charges. Their financial advisors will guide you at every step of your loan making procedure. 

According to their terms and conditions, you’ll get the best optimal loan amount for your loan application. They will consider your current earning scenario and will guide you with their loan deals accordingly. All you need to assure them is that you draw a steady salary monthly. The paper works are easy with the support team who will look after your credentials and make the value of them.


To conclude, you must acknowledge the facts and figures of your home renovation plan. Consider taking a minimalistic approach where it seems necessary. Also, consider making a budget-friendly renovation plan where you can afford to pay the loan on time. Lookout for better interest rates and seek advice if necessary. All these with a bit of aesthetic touch you’ll create your dream renovated house for sure. Contact Bugis Credit for a renovation loan consultation today!

Ready To Get Your Loan?

Request for a quotation from our friendly officers by filling out the form below

Call Now
× WhatsApp Us