Is It Worth Getting A Renovation Loan In Singapore?

February 15, 2022
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Donny Raw
Posted in Finance
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Renovation Loans are loans that financial institutions offer for home improvements. Choosing the right renovation can help to raise the total resale value. However, it is a capital-intensive project that requires borrowers to take a renovation loan. Through it, they can fix their bathrooms, kitchens, and roofs.

In Singapore, the loan amount depends on the type of renovation borrowers choose for the loan. The renovation loan Singapore interest rate can vary. For this reason, different financial institutions provide customers with some renovation loans that enable them to get the home of their dreams.

How Do Renovation Loans Work In Singapore?

Renovation Loans come with a low-interest rate in comparison to personal loans. They have tenures that range from 1 to 5 years. People who take renovation loans can opt for monthly repayments during the tenure of their loan.

Lenders ensure the proper use of the loan by disbursing the amount to the contractors directly. It is done through a cashier’s order or many cashier orders. After the disbursement of the loan, there will be site visits as per the quotation.

Things You Can Do With A Renovation Loan

Fix crumbling roof

The roof of the house is a significant component. If you notice any damage, you need to fix it on an emergency basis. Any delay can expose your house to elements that can accelerate its wearing.

You can check for signs of damage by looking for any leaks present on your roof. Leaking water can cause rot in wooden materials. Additionally, it can affect the ceiling. A renovation loan can help you to take care of such things.

Repair flooring

The flooring of your house is more prone to wear and tear. It can result from regular scrubbing from furniture and shoe pressure. You will be able to notice the first signs of damage on the kitchen and bathroom floors.

In case you find any dent, crack, or strain on the floors of your house, it is essential to repair them immediately. Changing your floor can enhance the look of the house. You can use a renovation loan in Singapore to repair the following.

Exposure of moisture to your floors
Change of flooring

Repaint walls

If the paint of your walls has started to fade because of chemicals, sunlight, and dirt, repainting can be a costly affair. You can use a renovation loan to help you to get high-quality paints. It is crucial to paint your wall as it begins to chip out and fade. If you do not repair it early, more pre-painting work will increase the expense of repainting a wall.

Remodelling

Remodelling can increase the value of your house. It can transform different places in your home. For instance, you can remodel your bedroom, wardrobes, and kitchen cabinets with a renovation loan to make your house look appealing. When you decide to sell your house, its market value will increase automatically.

Fencing

When anyone enters your home, they will first admire its fence. The latter improves the security and privacy of your house. A renovation loan can enable you to install a new fence or repair the existing one.

Advantages Of Renovation Loans

Some advantages of renovation loans are as follows.

Individuals can get more money from their renovation loan as it is on the basis of the home modification value.
It decreases the overall expense of the borrowers as they can work on their existing homes without buying a new one.
Renovation loans have lower interest rates that decrease the user’s expenditure.

Disadvantages of Renovation Loans

Not all banks offer a renovation loan?
Renovation loans require a contractor that extends the loan approval process.

How To Prepare For A Renovation Loan In Singapore?

After you go through the lists of lenders, you can decide on which lender you want to take your renovation loan from. Lastly, keep the following things ready while you prepare for a renovation loan in Singapore.

An original copy of the National Registration Identity Card
Your latest payslips
Proof of ownership of property
Your CPF or Central Provident Fund contribution statement for six months before the renovation loan application date
A quotation from your contractor who will deal with the renovation project after the loan approval

Conclusion

You can get a renovation loan in Singapore to fix your roof, alter your flooring, repaint walls, remodel your home, and repair your fence. Renovating your home will increase its market value in the future. Besides, it decreases your expenses by repairing your home instead of spending more money on a new one.

When borrowing from a licensed moneylender, you need to verify if it is a licensed moneylender. Moreover, if you are asking, is licensed money lenders are safe? Licensed moneylenders in Singapore are governed by the Ministry of Law, they are different from illegal lenders. Therefore, it is really safe to borrow from them. Know more about them through licensed money lender Singapore review.