Applying For A Quick & Fuss-free Renovation Loan In Singapore

When it comes to renovating your dream home, the sky’s the limit, right? Renovation costs are highly subjective and dependent on the aesthetic and extent of work you want to get done. For example, if you are planning on doing demolition work such as hacking of walls, installing false ceilings and partitions, installing new bathroom fittings and more, and using more premium and customizable materials can add to the renovation costs. Who wouldn’t want to invest in a cozy and furnished nook to call our own? However, not everyone can easily afford the dream home we want but that doesn’t mean you can’t achieve it with a little help.

A renovation loan is a personal loan specifically meant for financing your home renovations. As it is used specially for renovations, if you are taking out a bank loan, the interest would be lower since the bank knows that you already own a home (an asset), and the money is used to enhance the value of this asset. However, bank loans also come with certain restrictions such as the kind of enhancements you can use the renovation loan for, and that the money would be disbursed to your interior designer or contractor directly. This means the main bulk of your loan would go straight to a third party, leaving you with restricted options as to what you can use the remaining loan (if any) for. Banks can also charge extra if your loan has to be disbursed in stages or to different vendors.