Your home is the place where you find solace with your loved ones after a hard and long day of work. It is the place where you take refuge from the world and protect yourself from all kinds of dangers that are present out there in the open. All houses go through a degree of wear and tear over a period of time and times they might even become uninhabitable due to the same. Besides, when a family grows there can be an additional need to expand the house and make living arrangements for more people. In order to do so, you will need to spend a lot of money and if you do not have access to the required money you can opt for a home improvement loan.
A loan home improvement is usually either secured or unsecured and is offered to the borrowers to help them in renovating, repairing or remodelling their homes. Unsecured home improvement loans are offered based on the credit history and financial profile of the applicant and they do not require the applicant to pledge any financial asset as security. On the other hand, those home improvement loans that are secured, require the applicant to pledge any financial asset of substantial value as collateral security. Such loans might even require the borrowers to offer additional security in the form of a guarantor. The guarantor signs the loan agreement with the borrower and provides a guarantee that the lender will be able to get their money back.
Home improvement loans are essential in helping to remodel a house and make it habitable. Such loans can also help to meet health and safety standards that have been set by the authorities. These include the modernization of drainage pipes, re-installation of a patched roof and renovation of the ventilation system including air conditioners and heaters. There may also be a need to build new homes in order to reduce congestion. Depending on the size of the mansion, this can cost a fortune. As a result, people need to opt for such loans to fund the repair or expansion of their house.
A home improvement loan is an unsecured loan and offered for the specific purpose of making improvements or renovations to your home such as remodeling, installations, additions, etc. The loan amount depends on your monthly salary.
A home loan, on the other hand, is a secured loan for the purpose of buying a new property or refinancing an existing home loan. The loan amount depends on the market value or the purchase price of the home.
There are many banks and financial institutions in Singapore that offer people with loans for home improvement. The quantum of financing is quite high and you can avail up to 80 percent of the total cost of renovation / repair as a loan. Some of the banks that offer such a loan product in the Lion City are as follows:
A POSB Renovation Loan can help you to renovate your house without any difficulty. You will enjoy flexible repayment tenures of 1 year to 5 years and will not find it a daunting task to pay off the borrowed amount.
Home Renovation Loans from Maybank offer a high loan amount of SGD 30,000 or 6 times the monthly salary of the applicant. The loan has to be repaid within a maximum period of 5 years.
The OCBC offers renovations loans at very attractive rates and also offers higher quantum of financing. Apart from applying for the loan as an individual, you will also get the option of applying for it jointly with any one of your immediate family members.
This Malaysian banking giant offers a range of home loan products in Singapore, which include renovation loans. You will need to pay a low processing fee of 1 percent for the loan.
DBS Renovation Loan will offer you with greater savings as you will enjoy very competitive and attractive rates with the amount offered as a loan. The amount offered can be as high as SGD 30,000.
The CIMB offers renovation loans to help Singaporeans in improving or renovating their houses. The applicant can choose whether to receive the loan as a lump sum amount or through up to 3 Cashier's Orders (complimentary).
When you apply for a home improvement loan in Singapore, you will most likely need to submit the following documents:
In order to be eligible for a renovation or home improvement loan, you will most likely need to meet the following eligibility criteria: