In Singapore, the DBS/POSB renovation loan offers the most competitive interest rates for 4 to 5 years and 1 to 3 years for amounts less than S$10,000. However, they do charge higher fees compared to other banks, and their interest rates are less competitive in other circumstances.
DBS/POSB renovation loans run at 3.88% p.a, with a preferential rate for current DBS mortgage customers at 2.88% p.a. The loan tenure for their packages ranges from 1 year up to 5 years, and loan amounts ranging from S$5,000 to S$30,000.
DBS Bank also has another renovation loan offer in the DBS Green Renovation loan, which gives lower rates to homeowners who want to upgrade their property into an eco-friendly and sustainable home.
What Can DBS Renovation Loans Be Used For?
Renovation loans give you multiple areas and repairs to cover. DBS’s renovation loan package, in particular, can cover the following:
- Electrical and wiring works
- Built-in cabinets
- Painting and redecorating works (e.g. wallpaper)
- Structural alterations
- External works within the compound of the house
- Flooring and tiling
- Basic bathroom fittings
- Installation of solar panels
- Attractive rates of 3.88%
- Preferential rates for existing home loan customers at 2.88%
- Easy application at the DBS website
- Comprehensive insurance coverage
- Age limit of up to 65-years old
- Low minimum amount requirement of S$5,000
- Low minimum monthly income requirement of S$24,000
Monthly Repayment Based on a S$10,000 Approved Loan Amount
|Loan Tenure||Processing Fee||Interest Rate||Monthly Instalment||Total Loan Cost|
Monthly Repayment For Existing Home Loan Customers Based on a S$10,000 Approved Loan Amount
|Loan Tenure||Processing Fee||Interest Rate||Monthly Instalment||Total Cost|
- Competitive Interest Rates in the 4 to 5-Year Loan Category. A renovation loan from the DBS bank has an interest rate of 3.88%, one of the lowest interest rates among other banks with renovation loans.
- Low Minimum Income Requirement. The bank’s renovation loans are available to applicants with incomes as low as S$24,000, a lower requirement than many other banks. For joint applicants, the minimum income requirement is S$12,000 each.
- Low Minimum Loan Amount Required. A renovation loan from DBS bank can have an approved loan amount as low as S$5,000, which is lower than what you would get from a different bank.
- Higher Applicant Age Requirement. Unlike other popular options, a renovation loan from DBS bank has a maximum age requirement of 65 years old.
- Insurance Coverage. DBS offers coverage to home loan customers in the case of death or total permanent disability. A renovation loan comes with a small fee–an insurance premium of 1% of the loan amount.
- Lower Interest Rate for Applicants That are Current Home Loan Customers. Homeowners that currently have a home loan with DBS can get lower rates of 2.88%. This is among the lowest possible interest rates on Singapore renovation loans.
- Higher Fees Compared to Other Banks. Despite its relatively inexpensive cashier fees of S$5 (free for a first-time applicant), a renovation loan from DBS has a comparatively higher fee total. Upon application and before loan disbursement, you must pay a processing fee/handling fee and insurance premium, both at 1%.
- Higher Rates Compared to Most Personal Loans. Personal loans are also a valid option for funding home renovations and contractor services in Singapore. They will typically have lower rates than financial products from banks.
How DBS Renovation Loans Compare to Other Banks
|Bank Renovation Loan||Interest Rate||Minimum Annual Income Requirement||Processing Fee||Minimum Loanable Amount||Maximum Loanable Amount||Loan Tenure Range||Eligible Age|
|Maybank Renovation Loan||4.10%||S$30,000||0.75%||S$5,000||S$30,000 or 6x of monthly income (depending on which is lower)||up to 5 years||21 to 55|
|Maybank Renovation Loan (for current home loan customers)||2.88%||S$30,000||0.75%||S$5,000||S$30,000 or 6x of monthly income (depending on which is lower)||up to 5 years||21 to 55|
|DBS Renovation Loan||3.88%||S$24,000||1%||S$5,000||S$30,000 or 6x of monthly income (whichever is lower)||up to 5 years||21 to 65|
|DBS Renovation Loans (for current home loan customers)||2.88%||S$24,000||1%||S$5,000||S$30,000 or 6x of monthly income (whichever is lower)||up to 5 years||21 to 65|
|DBS Green Renovation Loan||2.68%||S$24,000||1%||S$5,000||S$30,000 or 6x of monthly income (whichever is lower)||up to 5 years||21 to 65|
|OCBC Renovation Loan||4.18%||S$24,000||1.50%||S$5,000||S$30,000 or 6x of monthly income (whichever is lower)||up to 5 years||21 to 59|
|CIMB Renovation-i Financing||4.33%||S$24,000||1%||S$10,000||S$30,000 or 6x of monthly income (whichever is lower)||5 years and 1 day||21 to 55|
|Maybank Renovation Loan||4.10%||S$30,000||0.75%||S$5,000||S$30,000 or 6x of monthly income (depending on which is lower)||up to 5 years||21 to 59|
|Maybank Renovation Loan (for current home loan customers)||2.88%||S$30,000||0.75%||S$5,000||S$30,000 or 6x of monthly income (depending on which is lower)||up to 5 years||21 to 59|
|RHB Renovation Loan Flat Rate||2.98%||S$30,000||1%||S$5,000||S$30,000 or 6x of monthly income (depending on which is lower)||up to 5 years||21 to 55|
What We Think of DBS Renovation Loans
Depending on your eligibility, DBS can get you the cheapest renovation loan on the market in terms of the interest rate. While for example, RHB has a better rate for a new applicant, people who earn lower than S$,30,000 annual income and are over the age of 55 cannot use it. Barring that, DBS has the best offer for new borrowers among many financial products.
The biggest drawback is the fee total you’d have to pay during applications. Between the insurance premium, proctotal fee, and cashier fee, the loan comparatively charges twice as much as other financial institutions.
However, the insurance premium can still be useful for covering cases of death or total permanent disability.
Does it Stand Out Compared to Other Banks?
Yes. Renovation loans from DBS have more lenient eligibility and offer a competitive option for someone who has a job that pays an annual income lower than S$30,000, or someone beyond 55 years old. Moreover, the approved loan amount can be as low as S$5,000, which other renovation loans can’t offer.
Current customers with home loans with DBS also can get the lowest interest rates from the renovation loans above. The processing fee and insurance charge can be more expensive, but the insurance coverage can still be useful. Click here to find out the Best Renovation Loans in Singapore.
How to Apply for DBS Renovation Loans:
To proceed with the application process, you must be:
- Singapore Citizen or Permanent Resident
- 21 – 65 years of age
- The property owner or related family member (parent, spouse, child or sibling) who has the owner’s consent
- A minimum annual income of S$24,000.
You must submit the following required documents:
- Completed Application Form
- Scanned / Digital invoice or quotation signed by contractors and applicant(s)
- Income Documents
- Copy of front & back of NRIC (only required for mail-in or branch applications)
- Proof of Ownership (for non-DBS/POSB home loan customers)
- HDB or MCST Renovation Permit (where applicable)
Note: For applicants who are owners of the appointed contractor service or interior design service, i.e. renovating your own property, you must submit an HDB or MCST Renovation Permit.
The fees for the loan are as follows:
- Processing fee/handling fee: 1%
- Insurance premium: 1%
- Cashier order: S$5 (free for first-time applicants)
- Late fee: S$35
- Pre-payment fee: 1%
- Cancellation fee: 1%
1. What is Green Renovation Loan?
The DBS Green Renovation Loan offers borrowers who want to fill their property with more eco-friendly renovations, like solar panels, for example. It comes with a very competitive rate of 2.68%, which is much cheaper than other options.
2. What is the scope of renovation works that DBS could cover?
The disbursed money can be used for various changes you can make to your home, namely solar panels, structural changes, painting and redecoration, built-in cabinets, electrical, floors and tiles, bathroom fittings, and external works within the vicinity of the property.
It does not cover furnishing or appliances.
3. What is the cheapest renovation loan?
RHB renovation financing has the lowest rates, and Maybank has the cheaper fees. However, if you happen to have a home loan with DBS or Maybank, you can get lower rates than most renovation loans.
4. What other loan alternatives can I use for renovations?
A personal loan is a valid alternative if you aren’t eligible for a loan specific to renovation. In Singapore, you get more lenient requirements and flexible terms, but your interest and amount may vary depending on your eligibility details. Find out the best personal loans in Singapore here.
Your credit card may also cover smaller renovation expenses.
Our Final Thoughts
- DBS offers some of the best rates for covering renovation services, provided you are an existing customer or making eco-friendly changes.
- Consider other financing options, like a personal loan, for example.
- Carefully examine your situation as it dictates the best loan offer to consider.
If you’re having difficulty finding a loan, consider the services of Instant Loan. It is a loan comparison service that reviews your financial situation and provides you with a curated list of the best offers from the top financial institutions in Singapore. Save time comparing your options and get your most suitable loan plan today.