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    POSB Renovation Loan Singapore

    POSB is one of the most popular Singaporean banks that was acquired by DBS in the late 1800s. The bank is known for its affordable interest pricing and the wide range of products it offers. Among the various credit products offered by the bank, renovation loans are one of them. Let’s look at the important features, notable benefits and other details including interest rates, how to apply for the loan and frequently posed questions on the bank’s renovation loan product.

    You’re probably eligible for a POSB Home Renovation Loan if you are

    POSB Renovation Loan Minimum Age

    POSB Renovation Loan Minimum Age - 21 years

     POSB Renovation Loan Maximum Age

    POSB Renovation Loan Maximum Age - 65 years

    POSB Renovation Loan Eligible Employment Type

    Salaried / Self-employed with regular income

    POSB Renovation Loan Minimum Income

    S$24,000 for single and/or joint applicants

    Your POSB Home Renovation Loan amount eligibility is based on these factors

    POSB Renovation Loan Minimum Salary

    POSB Bank Renovation Loan Min Salary - S$24,000

    POSB Renovation Loan EMI

    Existing Loan EMI - EMIs of other loans lower your eligibility

    Increase your eligible POSB Home Renovation Loan amount by these steps

    POSB Renovation Loan Add Spouse as Co-applicant

    Make your immediate family member a co-applicant, and his income will add to your eligibility

    POSB Home Renovation Loan Basic Details Updated on 20 Feb 2019

    POSB Home Renovation Loan Basic Details
    Min Loan Amount S$10,000
    Max Loan Amount S$30,000
    Max Loan Tenure up to 5 years
    Interest Rates 4.38%
    Monthly EMI Min. S$186

    POSB offers renovation loans to help you give your home the ideal facelift that it deserves. In case you have a home loan with POSB or DBS, you’ll get a lower interest rate on your renovation loan.

    Types of Housing Loans offered by POSB in Singapore

    You can get the following kinds of home loans through POSB in Singapore:

    • POSB HDB Loan
    • POSB HDB Loan Refinancing
    • POSB Private Property Loan and Refinancing
    • POSB Renovation Loan

    Features of the POSB Renovation Loan

    • The POSB Renovation Loan comes with affordable interest rates, much lower than most financial institutions.
    • If you have a home loan already with POSB, you can get a reduced interest rate option on your renovation loan. (interest starts at 2.31%).
    • The tenure for renovation loans offered by POSB is 5 years.
    • A loan amount of up to S$30,000 will be provided by POSB for home renovation. The maximum loan amount is dependent on your annual income.

    Interest Rate for the POSB Home Renovation Loan

    Year Effective Rate of Interest (p.a.)
    First Year 8.00%
    Second Year 6.24%
    Third Year 5.62%
    Fourth Year 5.30%
    Fifth Year 5.11%

    POSB Renovation Loan Fees and Charges

    Insurance Premium 1% of the approved loan amount
    Handing Fee 1% of the loan amount
    Cashier Order S$5 for each Cashier order (first cashier order is free, a maximum of 3 orders will be issued)
    Cancellation Fee/Pre-payment charge 1% of the cancelled/prepayment amount

    Eligibility Criteria for POSB Renovation Loan

    • The applicant has to be at least 21 years of age.
    • The minimum income to apply for the POSB Renovation Loan is S$24,000.
    • The applicant has to be a Singaporean citizen or a Permanent Resident.
    • The loan isn’t available to foreigners.

    Documents required to apply for the POSB Renovation Loan

    • Front and back copy of NRIC.
    • Proof of ownership of Property (Sale and Purchase Agreement, HDB Approval to purchase/own an HDB Flat, Certificate of Title in the case of private properties).
    • Income documents – latest computerized payslips, latest Income Tax Notice of Assessment, CPF Contribution History (last 6 months).
    • Renovation Permit and Invoice/quotation from contractor.
    • Marriage certificate and birth certificate in the case of joint applicants.

    How to Apply for a POSB Renovation Loan in Singapore

    You can apply for a renovation loan with POSB by visiting the official POSB website and filling out the online renovation loan application form. The bank also gives you the provision of uploading your documents online, following which a representative from the bank will get in touch with you and help you fill-out the remainder of your application. Your application will then be processed and reviewed by the bank.

    Modes of Repayment

    Repayments towards your POSB Renovation Loan can be made through internet banking. Log in with your internet baking banking credentials, select the beneficiary POSB account and transfer the monthly repayment amount to the bank. You can also pay through the POSB mobile application if you have an account with POSB.


    Q. Are only licensed contractors eligible to perform renovation in HDB flats?

    1. Yes, only licensed contractors are permitted to undertake renovation work. In case a contractor isn’t registered, a renovation permit needs to be submitted.

    Q. Is there a choice in interest rate package?

    1. While home loans usually come with a fixed rate package or a floating rate package, home renovation loans offered by POSB only come with a flat rate package. Repayments will remain fixed through the tenure of the loan.

    Q. What is the impact of my credit score on my loan application?

    1. You will need to have a clean credit history for at least 1 year if your loan application should be processed seamlessly and approved without hassle.

    Q. Will I have to purchase insurance separately?

    1. No, the insurance premium of 1% of the approved loan amount will hold applicable. So, you don’t have to purchase the insurance separately.

    Q. What is the interest rate if i already have a home loan with POSB?

    1. You will get a preferential interest rate of if you already have a home loan with POSB or DBS. The interest rate starts at 2.31% p.a.
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