Home Renovation Loan

A home renovation loan is a short-term, unsecured loan designed to finance house remodeling projects. In this respect, it is not much different from personal loans. However, a personal loan can be used for any expenses that will help your personal circumstances.

Renovation loans, on the other hand, can only be used specifically for renovation activities. That said, it comes with certain restrictions on the types of enhancements the funds can be used for, such as home repairs and improvements, but not including furniture purchases.

Home renovation loans are also different from home loans. The latter is used to fund the purchase of your property. You can apply with a bank or the Housing Development Board (HDB).

The funding issued can only be used to cover renovation costs, including:

• Electrical and wiring works
• Flooring and tiling
• Basic bathroom fittings
• Painting and redecorating works
• Carpentry works, such as installing built-in cabinets
• Structural modifications
• Installation of Solar Panels

Note that you can’t use a renovation loan for any other items other than renovation.

The total house renovation cost will depend on a lot of factors, such as the size and extent of the renovation project. Plus, it will also depend on the kind of materials used as well as the labor costs. As such, home renovations can range from S$20,000 to S$70,000.

For example, renovating a 4-room resale HDB flat can set you back at approximately S$45,000. This cost includes the raw materials and labor required for the project.

If you are on a tight budget, consider the raw materials you’re going to use for your house renovation. Look for more affordable alternatives. Aside from raw material costs, you can also consider completing remodeling projects in stages. Start with the parts of your home that really need an upgrade.

If the home renovation project is relatively small, you may have enough savings to cover the costs. However, there are instances wherein taking a renovation loan becomes necessary. For example, you may have bought a resale flat that needed major fixing up and you need to move in soon, but you don’t have enough cash for renovation.

The best renovation loans can cover renovation costs so you can start fixing your home quickly.

1 Fullerton Credit’s home renovation loan can help you make your dream home a reality. Here are some benefits of taking out a renovation loan with us:

• We guarantee fast loan approvals
• Home renovation loans are unsecured loans, so no collateral is necessary
• Transparent loan plans and flexible repayment options
• Easy application process and fast cash disbursement

Applying for 1 Fullerton Credit’s renovation loan is easy and straightforward as long as you have your complete set of documents and information. The application will be processed in less than an hour.

After applying online or calling from the comfort of your home, our loan officer will schedule an in-person appointment to discuss the terms of your loan plan. You will receive the loan proceeds on the same day as soon as the loan contract has been signed.

The maximum approved loan amount you can borrow will depend on several factors, such as your citizenship and annual income. Since renovation loans are unsecured loans, you can borrow up to 6x your monthly income if you are earning at least S$20,000.

How much renovation loan can I borrow if my annual income is less than S$20,000? Take a look at the table below: