Taking a Renovation Loan
Style your dream home with one of the lowest renovation loan rates in town at just 2.31% p.a..
Taking a Renovation Loan
Why take a DBS Renovation Loan?
Flat interest rate of
2.31% p.a. (EIR: 4.38% p.a.)
Choice of 1-5 years
for loan repayments
Loan amount of
Up to S$30,000
or six times your monthly salary, whichever is lower
Peace of mind
with comprehensive insurance coverage
Monthly Repayment
| Repayment Period | Effective Interest Rate (EIR) | Monthly Repayment |
|---|---|---|
| 1 year | 8.00% | S$854 |
| 2 years | 6.24% | S$436 |
| 3 years | 5.62% | S$297 |
| 4 years | 5.30% | S$228 |
| 5 years | 5.11% | S$186 |
Based on S$10,000 approved loan and monthly rest rate of 4.38% p.a. for existing home loan customers. Monthly rest rates are calculated based on the previous month's outstanding balance. EIR is the interest rate which reflects the total cost charged for using the loan.
Loan Eligibility
Who can apply
- Singapore Citizen or Permanent Resident
- 21 - 65 years of age
- The property owner or related family member (parent, spouse, child or sibling) who has the owner's consent
| Single Application | Joint Application |
|---|---|
| Minimum income of S$24,000 per annum | Main applicant
Joint application
|
Your Renovation Loan can be used for:
- Electrical and wiring works
- Built-in cabinets
- Painting and redecorating works (e.g. wallpaper)
- Structural alterations
- External works within compound of the house
- Flooring and tiling
- Basic bathroom fittings
Please note that the Renovation Loan cannot be used to pay for furnishings or for any other purpose besides renovation. If you need help to finance your home furnishings, get ready cash with DBS Cashline.
Things to note:
HDB Renovation Guidelines
Only HDB Licensed Renovation Contractors are allowed to carry out renovation works in HDB flats. View HDB's list of approved contractors on the HDB website.
Fees and Loan Disbursement
The following fees are payable and deducted from the approved loan amount:
- Handling Fee: 1% of approved loan amount
- Insurance Premium: 1% of approved loan amount. In the event of death or total permanent disability, Manulife will pay off your outstanding renovation loan balance
Here's an illustration of the disbursed loan amount nett of the fees:
| Approved loan amount: | Fees payable: | Disbursed loan amount: |
|---|---|---|
| S$10,000 | Handling Fee (1% of S$10,000) = S$100 Insurance Premium (1% of S$10,000) = S$100 | S$9,800 (S$10,000 – S$100 – S$100) |
The approved loan amount nett of the handling and insurance fees will be disbursed to the contractors via cashier's order(s). You can request for a maximum of 4 cashier's orders to be issued to the renovation contractor. There would be a fee of S$5 each for the second and third cashier's order.
Other fees:
Should you wish to cancel the loan after it has been approved, there would be a cancellation fee of 1% of approved amount. Should you wish to prepay and redeem the loan, there would be a pre-payment fee of 1% of outstanding loan amount. Please note that partial prepayments are not allowed.
Post-Disbursement
Site visits will be conducted post-disbursement to ensure that the loan proceeds are used for the stated renovation works as listed in the quotation.
Full terms & conditions can be found here.
Some Handy Tips and Tools
Application Checklist
Check that you've got all the paperwork in order for your application.
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