A home is the comfort place for anyone. We all are comfortable in our own homes but there are some things that make us less comfortable living in our own homes.
For example, your roof is damaged and there are obvious leaks of water from the roof, there might be times when your water pipes are also leaking, some cabinets are broken and other things that will make you less comfortable.
We all know that when we experience these kinds of problems in our homes, we need to take the necessary steps for us to fix them. We can renovate the house or just repair the things that are broken inside or outside the household.
With this, there might be times when you urgently need a home repair or renovation but you are lacking the money to make this possible. Most financial institutions offer renovation loans that are quite similar to that of a personal loan but the interest rate of a renovation loan can be considerably lower than that of the personal loans.
These institutions will require you to show proof that you are the owner of the house or one of the family members that owns it.
Showing proof of ownership will help you lower down the rates of your loan. They sometimes offer a maximum amount of $30 000 for this type of loan. The loan amount will also depend on some other things that the lender requires.
If you are not earning that big per month, chances are, you will be approved for a loan but you will not be approved for a higher amount.
Getting the best renovation loan
For you to get the best deal for this loan, you need to do your research and study each and every offer that you can see from different companies or banks. You can do the comparison for each offer. You can also find a free renovation loan calculator online that will allow you to compare rates from different financial institutions.
Most of the time, you can count on the bank that you had a home loan from for your another loan because most banks do more favors to their existing and valued customers.
You can talk to the bank personnel about this loan to check if they can offer you a great deal since you already have a home loan with them.
Where should a renovation loan be used?
Renovation loans are strictly for renovation use only. Just because you have been approved for a renovation loan doesn’t mean you can spend the money in any way that you want.
The money that you have borrowed can only be used for your home improvement like fixing your electrical wirings, painting your walls and putting wallpapers, you can also use the money for your flooring and putting tiles, installing cabinets, cupboards and closets.
Can also be used to fix a part of your house or just alter the appearance for further improvement. You can also have the fences and roof fixed if there is any damage or just simply do the necessary precautions to make it stronger. Can also be used to put in heaters and other stuff that is needed in the home.
How does this kind of loan work?
In house renovation loan can be found in most of the banks and financial companies. You can directly apply this loan through the internet or call them over the phone or you can just simply visit their office to make a personal appearance.
There are different requirements that each bank or financial institutions are asking but most of the documents that are required are the proof of your income, NRIC, proof that you are the homeowner or at least a family member, invoice of the contractor, etc. these are the most common ones, it just depends if they require more.
You will then be asked how much you want to loan and how long you are willing to pay. You can also rely on loan calculator for the installment repayment of the loan amount that you are eyeing for.
By the time you are approved with this loan, the lender will pay the amount of money you borrowed directly to the contractor on your behalf, this is less the fees, insurance and processing charges.
There are also some lenders that may opt to do site visits just to make sure that the loan amount is not being spent on some other things other than what it’s supposed to be.
They say that Maybank renovation loan is among the best and fast approval that can give you the best deals in SIngapore especially if you already have an existing home loan.
They can probably offer you the cheapest deals in Singapore. Their interest rates can change anytime so if you are planning to get a loan, you can probably check them out every once in a while so that you can spot the lowest deals.
To be qualified to get a loan from Maybank, you should be a Singaporean citizen from 21 up to 55 years of age, should be the owner of the property. Loan amount can be from $5,000 to $30,000, depending on your salary.
They have an offer of 2.88% interest rate for those who already have a home loan with them and should be processed over the internet.
If you are not a home loan customer, you can be given 4.33 percent interest rate if you apply over the internet.
Processing fee will most probably be 1 percent if you are approved. If you choose to cancel your loan after the approval, you will still be charged of 1 percent.
So, make sure that you are decided to get a loan before you apply and proceed with the process. Know more about the process and make sure you read and understand their terms.