We all want to come back after a tiring day at work to a place of comfort and a space that we can call our own.
But we all know that renovations for home improvement do not come cheap. Tens of thousands of dollars isn’t an easy amount to save up for. This is where a QV Credit’s Renovation Loan comes in!
What is a renovation loan and how does it work?
A renovation loan provides you with the necessary funds to cover the cost of your home renovations.
They tend to have lower interest rates than personal loans and have a loan tenure of between 1 and 5 years. Just like any other home loan or term loan, you make monthly repayments to pay off the loan amount by the end of the loan tenure.
However, with a lower interest rate comes restrictions on what you can use the loan to pay for. Do note that the money will be disbursed to your interior designer or contractor directly.
Eligibility Requirement for Renovation Loan in Singapore
As this is a rather large sum of money, you should make sure you are committed and set on a renovation before taking on a loan. There are some requirements you will need to meet before applying for a renovation loan. These are:
You can borrow up to 6 times your income, but this figure is subject to each individual.
Benefits of a Home Renovation Loan
Taking a Renovation Loan is Cost-Effective
While a personal loan is more flexible than a renovation loan, these benefits come at higher interest rate. QV Credit wants you to have your dream home, and that is why we keep our interest rates low for a home renovation loan.
A Renovation Loan has a Longer Tenure and Repayment Plans
Renovation loans have a longer loan tenure than personal loans. This way, your have a longer runway to pay off your loan amount, making it more comfortable for you.
A Renovation Loan can Help Boost Your ROI (Return On Investment)
Taking up a renovation loan will give peace of mind, as the property owner, that you have all the funds needed to have your makeover possible. This will boost your home’s value if you ever decide to sell your home.
You Get Your Dream Home
The greatest benefit is really just getting that home you’ve always dreamed about. Having a home you are proud of is also important for you and your family’s happiness.
Apply for a Loan with QV Credit
Get An Instant In-Principle Approval And Collect Your Money On The Spot!
Why Should I Take a Renovation Loan with QV Credit?
We are committed to making your dream house come true, and hence our renovation loan packages are flexible and customizable to help deal with all your reno needs!
Click here for more information on home loans, home loan interest rates and the respective loan tenure.
Tips for Taking a Renovation Loan
The cap on renovation loans is often six months of your income.
The next question is how much do you need?
Well, the loan amount also depends on several factors:
- Type of home: HDB flat, EC/condo, or landed property?
- Age and condition of home: The older it is, the more work needed
- The extent of renovation you want: Are you happy with the current state of the house or would you prefer to start from a blank slate by hacking everything down?
- Type of materials: For higher grade materials, naturally you’d have to fork out more
- The contractor/interior design firm you pick: Obviously, different firms offer different rates
For customers who want more information, fill out online application and schedule a chat session with our advisors
Applicants can use the loan for the following purposes:
- Carpentry such as building and installation of built-in wardrobe cabinets and cupboards
- Electrical and wiring
- Fittings such as bathroom heaters
- Flooring and tiling
- Painting the walls
- Structural alterations
- Works on external parts of the property, including roof or fences
Note that the loan cannot be used for:
- Home furnishing (eg. tables, cupboards)
- Upholstery (eg. sofas, beds, curtains)
- Electrical appliances used around the house (eg. air conditioner, fans, fridge)
We recommend opting for insurance coverage because the insurance premium will cover for any unforeseen damage.
While not everything listed below can be covered with a renovation loan, here are some of the typical “renovation works” and their costs:
- Hacking and rebuilding walls, plastering and touch ups
- Flooring, tiling, waterproofing
- Built-in features like built-in wardrobes, hidden shelves, custom-storage units
- Installation of water features like sinks, showers and bathroom fittings
Ceiling and partitions ($5,000-$8,000)
- False ceilings, false walls, curtain pelmets
Electrical works ($3,000-$6,000)
- Heaters, light fixtures, installing/replacing electrical outlets, ceiling fans
- Multiple coats of paint for walls and ceilings
- Bed, dining table, chairs, study table, sofas
- Fridge, TV, washing machine, air-conditioners
- As a backup in case any unexpected issues crop up
Pro tip: Ask any family member or friend who’s recently completed their renovations for recommendations on firms they recently engaged to get more information on their rates or any current promotion.
When you reach our office, our advisors will review your documents before giving you results on the approval status.
After signing the loan contract and agreeing on interest rates, loan tenure and other details, customers will receive the approved loan amount in one lump sum immediately.
The entire process from online application to loan approval and disbursement of the approved loan takes only a couple of days.