Maybank Renovation Loan

Maybank Home Renovation Loan Review 2021: Best for Existing Maybank Home Loan Customers

Home renovation loans from Maybank come with some of the market’s most competitive interest rates. People who plan to stay in their homes for a very long time can benefit from a cheap renovation loan as their repayments can be spread out over a longer period.

Maybank renovation loans offer a healthy loanable range due to its low minimum loan amount despite its middling interest rate. But its big draw lies in what the bank can offer to their existing home loan customers–if you’ve already achieved home ownership with its financial products, you can get a better deal!

 

Key Features

  • Take out loans of up to 6x your monthly income, with a minimum loan amount of S$5,000
  • Loan tenures up to five years
  • Competitive promotional interest rate of 4.10% (Renovation Loan Board Rate less 4.40% p.a.)
  • 1% processing fee, and no cashier fee for first-time borrowers
  • Lowest interest rates on renovation loans if you currently have a home loan with Maybank
  • They offer a hassle-free loan process so borrowers won’t have to worry about paying high application fees or getting low approval rates.
  • A great option for existing Maybank home loan customers
  • Suitable for large renovation projects.

 

Maybank’s Renovation Loan Interest Rates

Singaporeans love this bank because they offer such attractive rates when compared with other banks in Singapore. Their lowest rate is 4.10%, which is even lower than the market average that hovers around 4.7%.

To get an idea of how much renovation loans are going to cost you, here are sample computations assuming you get an approved loan amount of 10,000:

For New Loan Customers:

Loan Tenure Processing Fee Interest Rate Monthly Instalment Total Interest Payments Total Loan Cost
1 year 1% 4.10% S$852.87 S$234.44 S$10,234.44
2 years 1% 4.10% S$435.59 S$454.06 S$10,454.06
3 years 1% 4.10% S$296.58 S$676.74 S$10,676.74
4 years 1% 4.10% S$227.14 S$902.50 S$10,902.50
5 years 1% 4.10% S$185.62 S$1,131.33 S$11,131.33

 

For Existing Home Loan Customers:

Loan Tenure Processing Fee Interest Rate Monthly Instalment Total Interest Payments Total Loan Cost
1 year 1% 2.88% S$846.39 S$156.69 S$10,156.69
2 years 1% 2.88% S$429.28 S$302.76 S$10,302.76
3 years 1% 2.88% S$290.28 S$450,21 S$10,450.21
4 years 1% 2.88% S$220.81 S$599.04 S$10,599.04
5 years 1% 2.88% S$179.15 S$749.25 S$10,749.25

 

Pros

  • Relatively competitive interest rates for renovation loans.
    Despite losing out on other banks like DBS and RHB Flat Rate, Maybank’s option still offers a decent interest rate that is pretty close to the ones at the top.
  • Access to the cheapest interest rates for current home loan customers.
    Maybank may lose out on having the best rates for new customers, but homeowners with existing home loans with the bank get the best rates at 2.88%, matching with the DBS for their home loan customers.
  • Low minimum loan amount requirement.
    The financial institution allows borrowers to apply even with a loan as small as S$5,000!
  • No administrative fee.
    Unlike financial products from other banks, Maybank does not charge an administrative fee.
  • Standard fees.
    All of the fees deducted upon application are all above board. You can expect that you won’t be overcharged for the processing fee, cancellation fee, and prepayment fee.

Cons

  • Low age requirement cap.
    Unlike other banks in Singapore, Maybank reno loans can only be applied for by people who would be no more than 60 at the date of maturity, which means the highest possible age applicable is 59 years old for a 1-year tenure.
  • Higher rates compared to most personal loans.
    Despite their better-than-average rate on their standard loan and winning rate on their renovation loan for existing customers, the bank loses against the interest offers from most personal loans, which are a valid option for home renovation depending on your situation.

 

How Maybank Renovation Loans Compare to Other Banks

Home Renovation Loan Interest Rate Minimum Annual Income Requirement Processing Fee Minimum Loanable Amount Maximum Loanable Amount Loan Tenure Range Eligible Age
Maybank Renovation Loan Monthly Rest 4.10% S$30,000 0.75% S$5,000 S$30,000 or 6x of monthly salary (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 salary (depending on which is lower) up to 5 years 21 to 59
DBS Renovation Loans 3.88% S$24,000 1% S$5,000 S$30,000 or 6x of monthly salary (depending on which 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 salary (depending on which is lower) up to 5 years 21 to 65
DBS Green Renovation Loans 2.68% S$24,000 1% S$5,000 S$30,000 or 6x of monthly salary (depending on which is lower) up to 5 years 21 to 65
OCBC Renovation Loan Monthly Rest 4.18% S$24,000 1.50% S$5,000 S$30,000 or 6x of monthly salary (depending on which is lower) up to 5 years 21 to 59
OCBC Eco-care Renovation Loan Monthly Rest 3.98% S$24,000 1.50% S$5,000 S$30,000 or 6x of monthly salary (depending on which is lower) up to 5 years 21 to 59
CIMB Renovation-i Financing 4.18% S$24,000 1% S$10,000 S$30,000 or 6x of monthly salary (depending on which is lower) 5 years and 1 day 21 to 55
RHB Renovation Loan Flat Rate 2.98% S$30,000 1% S$5,000 S$30,000 or 6x of monthly salary (depending on which is lower) up to 5 years 21 to 55
RHB Renovation Loan Monthly Rest 4.18% 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 Maybank’s Renovation Loan

There are two ways to look at this, you can see it as a convenient way to carry out your dream renovation project, or you can look at it as an overrated offer. If you want to stay on your home loan for the long term and save every cent on monthly repayments, then this is one of the best renovation loans available for existing Maybank borrowers looking for low rates. 

For new borrowers, attractive interest rates and a pretty low processing fee of just 1% of the approved loan amount can be very tempting. However, this may not be the only suitable option available in Singapore… but there are other renovation loans out there too! Check out what else is in store for you with the above-mentioned renovation loan offers from other banks. You can also click here to find out more on the best renovation loans in Singapore.

RHB Renovation Loan Flat Rate, DBS, and OCBC Eco-care Renovation Loan, in particular, all have lower interest rates and processing fees, which you should always account for.

 

How to Apply For a Maybank Renovation Loan

Maybank branches require that borrowers submit an application form along with proofs of income, identity, renovation, and homeownership to be eligible for their home renovation loan.

The latest computerised payslip, CPF Statements of Account, or Income Tax Notice of Assessment will be presented by salaried applicants as proof of their income. The tax notice of assessment for the last two years must be provided by self-employed or commission-based employees.

Eligibility

To apply, you must be:

  • A bonafide Singapore citizen or certified Permanent Resident
  • Within the age range of 21-55 years old
  • Salaried applicants that are employed or self-employed

For joint applications:

  • At least one applicant must own the building/apartment subject to home renovation.
  • The minimum annual income of the main borrower must be S$30,000.
  • The minimum combined annual income of both applicants should be no less than S$48,000.
  • Joint Applicant must be the parent, child, spouse, fiancé, fiancée, or sibling of the Main Applicant.

 

Required Documents

  • Permits for renovation (if necessary)
  • Sales Order – HDB
  • NRIC photocopy (front and back)
  • Estimate or invoice for renovations
  • Property payment withdrawals from CPF
  • Letter of Confirmation from HDB
  • Latest income tax notice
  • Property tax bill
  • Proof of owning the property to be renovated
  • Proof of Relationship between Main and Joint Applicants

 

Fees and Other Charges

The details of payments you have to know are:

  • Disbursement Fee: S$5 per order (1st Free)
  • Processing Fee: 1% of the approved loan amount
  • Admin Fee: 0%
  • Cancellation Fee: 1.00%
  • Late Payment Fee: S$80
  • Partial Repayment Penalty: 1% on the prepaid amount (Min. S$100)
  • Full Repayment Penalty: 1% on the prepaid amount (Min. S$100)

 

Home Loan

FAQs

1. Does Maybank’s renovation loan come with an insurance premium?

No, Maybank doesn’t offer insurance premiums, and you won’t have to pay it upon application.  

2. Can I apply for another renovation loan at a different bank if my approved loan amount is not enough?

The lowest possible loan amount you can get for a renovation loan is SGD 5,000. Other alternatives like personal loans are also available.

3. Can I use CPF to pay my renovation loan?

No, taking out a renovation loan using your CPF savings is not possible.

 

Our Final Thoughts

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