Renovation Loans in Singapore — What You Need to Know
Whether you are renovating a new HDB flat, upgrading a resale flat, or refreshing a condo, a dedicated renovation loan is almost always cheaper than using credit cards or a personal loan. Singapore banks offer renovation loans at flat rates of 3–4.5% p.a. — translating to EIRs of 5.5–8%, versus 26–28% on credit cards.
Calculate your exact monthly renovation loan payment with our free renovation loan calculator Singapore.
What Is a Renovation Loan in Singapore?
A renovation loan is a secured or unsecured instalment loan specifically for home improvement works. It is disbursed directly to your licensed Interior Design (ID) firm or contractor — you cannot receive the funds in cash.
Key Characteristics
- Purpose: Home renovation only (not furniture, appliances or general purchases)
- Disbursement: Direct to ID firm or contractor (never to borrower)
- Maximum amount: Up to S$30,000 (MAS cap) or 6x monthly income, whichever is lower
- Tenure: 1–5 years
- Rate structure: Flat rate (similar to personal loans)
MAS Cap: MAS regulations cap renovation loans at S$30,000.
Best Renovation Loan Rates Singapore 2026
| Bank | Flat Rate | EIR (approx) | Max Loan | Max Tenure | Notes |
|---|---|---|---|---|---|
| DBS | 3.88% p.a. | ~7.56% | S$30,000 or 6x income | 5 years | Good for DBS home loan customers |
| OCBC | 3.98% p.a. | ~7.78% | S$30,000 or 6x income | 5 years | Fast approval within 1 day |
| UOB | 3.88% p.a. | ~7.56% | S$30,000 or 6x income | 5 years | Bundle savings with UOB account |
| Maybank | 3.68% p.a. | ~7.18% | S$30,000 or 6x income | 5 years | Lowest current rate |
| CIMB | 4.00% p.a. | ~7.83% | S$30,000 | 5 years | More flexible eligibility |
| Standard Chartered | 3.48% p.a. | ~6.95% | S$30,000 | 5 years | Competitive for new customers |
*Rates as of May 2026. Promotional rates available for new-to-bank customers.*
Monthly Repayment Comparison — S$30,000 Renovation Loan
| Rate | 3-Year Tenure | 5-Year Tenure | Total Interest (5yr) |
|---|---|---|---|
| 3.48% (SC) | S$928/mo | S$584/mo | S$5,220 |
| 3.68% (Maybank) | S$934/mo | S$591/mo | S$5,460 |
| 3.88% (DBS/UOB) | S$939/mo | S$597/mo | S$5,820 |
| 3.98% (OCBC) | S$942/mo | S$600/mo | S$6,000 |
What Does a Renovation Loan Cover?
Covered (Eligible)
- Structural works: hacking, flooring, tiling, plastering
- Electrical and wiring works
- Plumbing and sanitary fittings
- Carpentry: built-in wardrobes, kitchen cabinets, TV console
- Painting and wallpaper
- False ceilings and lighting fixtures
- Air-conditioning installation
- Kitchen and bathroom renovation
- Doors, windows, gate installation
Not Covered (Ineligible)
- Loose furniture (sofa, beds, dining tables)
- Home appliances (refrigerator, washing machine, TV)
- Decorative items (curtains, artwork, rugs)
- Landscaping and outdoor works (generally)
- Commercial property renovation
Always check with your bank — some banks are more flexible than others on borderline items like integrated appliances.
Renovation Loan vs Personal Loan for Renovation
| Renovation Loan | Personal Loan | |
|---|---|---|
| Rate | 3.48–4.00% flat (~6.9–7.8% EIR) | 3.45–4.50% flat (~6.7–8.7% EIR) |
| Max amount | S$30,000 (MAS cap) | Up to 10x monthly income |
| Disbursement | To contractor only | To you (cash) |
| Use restriction | Renovation works only | Any purpose |
If your renovation costs more than S$30,000 and the contractor cannot be paid through a renovation loan, a personal loan covers the remainder — but at higher rates.
How to Apply for a Renovation Loan in Singapore
Step 1: Get Your Renovation Quotation
Before applying, you need a detailed quotation from a licensed ID firm or contractor showing: - ID firm's UEN number (business registration) - Itemised works with individual costs - Total project cost and payment schedule
Step 2: Check Your Eligibility
Requirements across most banks: - Singapore Citizen, PR or foreigner with valid work pass - Minimum income: S$24,000 annually (S$2,000/month) - Minimum age: 21 years - Maximum loan: lower of S$30,000 or 6x gross monthly income - TDSR applies — total debt must not exceed 55% of income
Step 3: Prepare Documents
- NRIC (front and back)
- Latest 3 months payslips
- Latest CPF contribution statement or income tax NOA
- HDB purchase letter or property documents (proof of ownership)
- Renovation quotation from licensed contractor
Step 4: Apply Online or at Branch
All major banks offer online application. DBS and OCBC can process applications within 1 business day.
Step 5: Disbursement to Contractor
Renovation loans are disbursed in tranches based on renovation progress, directly to your ID firm:
| Progress Stage | Typical Disbursement % |
|---|---|
| Project commencement | 30–40% |
| Mid-renovation milestone | 30–40% |
| Completion | Remaining 20–30% |
Renovation Costs in Singapore 2026 — What to Budget
| Property Type | Typical Renovation Cost |
|---|---|
| New 3-room HDB (basic) | S$25,000 – S$40,000 |
| New 4-room HDB (basic) | S$35,000 – S$55,000 |
| New 5-room HDB (full reno) | S$50,000 – S$80,000 |
| Resale 4-room HDB (full reno) | S$60,000 – S$100,000 |
| Private condo (mid-range) | S$80,000 – S$150,000+ |
*Most new HDB 4-room renovations fall in the S$40,000–S$60,000 range — beyond the S$30,000 MAS renovation loan cap. Budget for multiple funding sources.*
Renovation Loan + CPF — Can I Use Both?
You cannot use CPF for renovation. CPF OA funds are restricted to property purchase downpayment and monthly mortgage repayments. All renovation costs must come from cash or renovation loans.
Tips to Reduce Your Renovation Costs
- Get 3+ quotations: ID firms vary significantly in pricing for similar scopes
- Phase your renovation: Do essential works now and add optional elements later
- Choose HDB-approved contractors for structural works
- Avoid peak periods: Renovations started after Chinese New Year often see higher quotes
- Maximise built-in storage over loose furniture — renovation loan covers carpentry
Frequently Asked Questions
Can I use the renovation loan for furniture?
No. Renovation loans cover only built-in and fixed works. Loose furniture must be purchased separately from cash or a personal loan.
Can I borrow more than S$30,000 for renovation?
The MAS cap for renovation loans is S$30,000. However, some banks offer a "home improvement loan" with higher limits (up to S$50,000–S$100,000). A personal loan is another option for amounts above the renovation loan cap.
How soon after buying an HDB can I apply for a renovation loan?
You can apply immediately after getting the keys to your flat. Apply before finalising your ID firm for the best rate.
Does a renovation loan affect my future home loan eligibility?
Yes. Renovation loan repayments count toward your TDSR. If you plan to upgrade your property soon, ensure the renovation loan repayment does not push your TDSR above 55%. Use our TDSR calculator to check.
Can my parents or relatives be the co-borrower on a renovation loan?
Yes. Most banks allow a co-borrower on renovation loans, which can help meet income requirements or increase the loan amount. The co-borrower must also meet the bank's eligibility criteria.
Start planning your renovation budget today with our renovation loan calculator — see your exact monthly payment at any loan amount and tenure.
About this guide
Published by LoanCalculatorSingapore.com on . Rates and regulatory limits quoted here reflect publicly available information at the time of writing and change frequently — confirm current figures with the lender or the relevant Singapore authority before you act on them.
Official references: MAS, HDB, CPF Board, IRAS.
We are not a licensed financial adviser. This guide is general information, not personalised financial advice. See our full disclaimer.