You just purchased a new home for your family to live in, and you want to make some renovation and personal modifications to make your house feel like it’s brand new again. What do you do to get the necessary funds to shoulder all of the expenses associated with a total home renovation?

You need a renovation loan. In this article, we will provide you with some of the most common questions that you should have an answer for before getting a Renovation Loan Singapore.

couple discussing their home renovation loan

Question 1: How much should I budget for my new home renovations?

This question is a very important one, and you shouldn’t start your plans to renovate your home without having an answer to this question.

Knowing your budget will allow you to get a renovation loan that has a loan amount that is suitable for your specific budget needs. Below, we will discuss some tips and guides for different types of home buyers (first-timers, seasoned buyers, and investors.)

  • Budget guide for newbies

If this is your first time renovating a home, it is advisable that you take the value of your house as a whole. Generally, it is not recommended that you spend 10-15% of the cost of your home in just a single room. As an example, if your house has a value of $100,000, you should aim to spend $10,000 – $15,000 per room.

If you are wondering what might be the reason for this restriction, it is because the money you will spend on a single room in excess of the stated percentage will not add much to the value of your home. You will essentially lose money in the renovation process but it will not be reflected in the value of your house.

On the other hand, if you value the lifestyle improvements that will be provided by an expensive room renovation, and you can certainly afford it, then you should go for it. They may not seem worthy if you look at it from the valuation perspective, but they will certainly make your life more comfortable.

  • Budget guide for seasoned home buyers

If this is your second time buying a home and renovating it, you might be familiar with the dos and don’ts of house renovation. You will also be familiar with the interest rate of your previous home renovation loan. As such, you might be able to use it for negotiation purposes and as a basis of what interest rates are acceptable for the loan amount that you want to acquire.

However, if your previous renovation loan was from a long time ago, take note that what is acceptable back then might not be applicable today. Always do your own research to get updated with regards to the latest trends in the loan industry in order to get the best possible deal with the lowest interest rates and favorable terms.

  • Budget guide for the investor

As an investor, you will surely be familiar with how to get the best deals for your renovation loans. You will also be aware of the interest rates of different loans such as DBS renovation loan, and more. Despite that, it is still recommended that you get a loan through a broker or an agent since having a professional to find the best loan for you will allow you to focus on your investments more.

Leave the task of finding the perfect loan to people who do it for a living, and give your full attention to your investing tasks. Just be sure to state your desired budget range, personal loan interest rate, maturity date, and other specific criteria to the loan agent so that they will know what to look for.

How much can I borrow for a loan renovation

Question 2: How much can I borrow for a renovation loan?

There is no definitive answer on how much you can borrow for a loan intended for house renovation. Factors include the value of the house that you are renovating, your credit rating, and your ability to pay the loan.

Different kinds of home renovation loans have their own credit score requirement, so be sure that your credit score is high enough for the type of loan that you want to get.

room renovation

Question 3: Should I renovate everything or do it piecemeal (room by room)?

Renovating your house all at one go or piecemeal have their own pros and cons, which will be discussed below.

Renovating your house all at one go will allow you to enjoy your home with the full renovations with the least downtime possible. However, it will come at the cost of not being able to live in the house while the renovations are going on.

Due to this, you should have another place in which you can stay while you are waiting for the completion of the renovation work. You can live with a friend or family for a while, or rent an apartment on a month to month basis.

On the other hand, renovating your house piecemeal by going through the rooms one by one will allow you to renovate your house at a less initial cost. This will come in handy in case you are not able to obtain a high loan amount.

By renovating room by room, you will be able to immediately start on your home renovation even if your funds are not yet complete. You will also be able to utilize the rooms not being renovated.

However, it comes with the cost of not having your whole house renovated in one go. Depending on the speed of each individual renovations, ongoing upgrades of each room can be a hassle, especially if the room being renovated are important rooms such as your bedroom, bathrooms, and kitchen.

The answer to this question depends on your capability to shoulder the costs with a loan, how willing you are to sacrifice convenience and home usability while the renovation is being done, and your personal preference.

what does my loan cover

Question 4: What does my renovation loan cover?

The coverage of the loan depends on where you obtained your loan. There are some loan providers that impose strict requirements on what home renovations are covered and what is not covered.

Meanwhile, some loan providers will only require you to present evidence (such as receipts for raw materials, invoice of contractors, etc) proving that the money from the loan was used for home upgrades.

To get a clearer answer on what home upgrades and renovations are covered by your home renovation loan, be sure to get in touch with your loan provider.

Question 5: Can I use my HDB home loan to cover my renovations?

Yes, you can. However, take note that only HDB Licensed Renovation Contractors can work on your renovation if you are using your HDB loan for your renovation. You can use the website of the Housing and Development Board to find out licensed renovation contractors that you can use.

Question 6: If I go over budget, can I apply for two home renovation loans to cover it?

Getting more than one home renovation loan if your first loan failed to completely pay for the entirety of your renovation is something that you can do. However, you must first contact your loan provider before looking for a second home renovation loan. There are loan providers that forbids taking out another home renovation loan if you get the first loan from them.

If you are not okay with such restrictions, be sure to take your renovation loan from a loan company with more liberty on their terms.

Having said that, even if your loan terms and conditions do not allow taking another home renovation loan, you can still take out other loans (such as personal loans from licensed money lender Singapore) and use it for your home renovations.

Even if your primary renovation loan is sufficient for your renovation, taking out another loan can come in handy if your primary loan has some restrictions. You can also use the funds from other loans for expenses that are not allowed by your home renovation loan.

home renovation covered by my CPF

Question 7: Is my home renovation covered by my CPF?

As stated by the CPF website which can be accessed here, renovation, repairs, and improvements are not covered by CPF savings.


If you looking for the best renovation loan company in Singapore, we have just the one for you. Fortune Credit is a licensed money lender that provides loans that you can use for your renovation in Singapore.

Visit their website to learn more about their loan offers, or give them a call at 6777 1887.