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Finding the right
contractor or Interior
Design firm...
The Dos & Donts for a
home owner in desperate
need of a home
renovation...
How can home owners
look out for con-artists
disguising themselves as
Interior Designers
and
what can they do if they
have been duped?
How and Where to apply for a renovation loan in Singapore

If figures and mathematics is not your strong suite, you are going
to hate having to trawl the Internet for loan information. Every
bank seems to take pride in offering the lowest interest rates and
you are getting a migraine just from trying to discern the
difference between nominal interest rates from effective interest
rates and flat interest rates.
Here’s a good site that talks about the difference between the
rates. If you rather skip the lesson in economics, then just jump
straight to my layman comparison chart below.
Monthly Rest Package
Flat Rate Package
Effective Interest Rate
Customers who go for
Monthly Rest package
prefer the option of
being able to pay off
their loan before the
end of the tenure.

With monthly rest
package, the interest
rates may fluctuate
over time to
accommodate for
inflation.

The interest for the
current month is
calculated based on
the previous month’s
outstanding balance.
This figure will
decrease overtime as
the loan is being paid
off.
Customers who go for
the Flat Rate package
of knowing how much
to budget for the
tenure of the loan.

The interest amount
doesn’t fluctuate and
you don’t have the
option of clearing the
loan before the end of
tenure.

Multiple the flat interest
rate (per annum) by
the amount borrowed
and multiple that by
the tenure duration.
The effective interest
interest rate you pay
for taking the loan.

(Huh? What?!)

The banks don’t mean
to confuse you. It is a
MAS regulation for
them to state the EIR
for the sake of
transparency.

The EIR rate is higher
than the nominal
interest rate because it
takes into account the
effect of compounding
interest when
calculating.

This is how you
calculate
effective interest rates.
I’ve done a fair amount of research and filtered down my
recommendation to five of the most popular renovation loan
products in the market today.

Besides being concerned with the interest rates, you will want to
look at the additional fees, perks and penalty to determine which
product suits you best.

Disclaimer: The figures are accurate at the point of writing this
article. Figures may fluctuate slightly so to be sure to check with
the banks through the contact numbers provided for latest
interest rates.
Overview
Interest Rate (Monthly Rest):         


Repayment period:
 

Loan amount:    

Additional Fee:      


Perks:    





Penalty:    




Loan Eligibility

• Citizenship:    

• Age Requirement:   

• Minimum Salary Requirement:  

4.88%
4.38% for existing DBS Home Loan customer

1 – 5 years

$5,000 to S$30,000

1% Handling Fee of Approved Loan +
1% Insurance Premium

A lower interest rate on renovation loan if you have an
existing home loan with DBS bank
First Cashier’s Order free
(subsequent CO are chargeable at $5.00 each, maximum 3
CO allowed.)

Late Payment Fee $35
No partial repayment allowed
Full Repayment 1% on prepaid amount



               
Singaporean or Singapore PR

21 to 65 years old

Sole Applicant must be earning at least $24,000 per annum.

Joint Applicant must be earning at least $12,000 per annum
and an immediate family member (parent, spouse, sibling or
child) of the Main Applicant.
Contact Details
•        Hotline  -  6333 0033 (Mon to Fri 9am to 5pm / Sat 9am to 12.30pm)
•        SMS "Reno<space>Name" to 76060
•        
Online Contact Form
Overview
Interest Rate (Monthly Rest):         


Repayment period:
 

Loan amount:    

Additional Fee:      


Perks:    





Penalty:    




Loan Eligibility

• Citizenship:    

• Age Requirement:   

• Minimum Salary Requirement:  
Contact Details
•        Hotline   -   6363 3333
•        
Online Contact Form
Supported by
Intellectual Property of Perle Noire (Singapore) www.PhuaChuKang.com 2009.
In collaboration with R.I.D.S. (Renovations & Interior Designs Singapore)

5.38%
4.98% for existing OCBC Home Loan customer

1 – 5 years

$5,000 to S$30,000

$200 Processing Fee +
1% Admin fee of approved loan amount

A lower interest rate on renovation loan if you have an
existing home loan with OCBC bank

First 3 Cashier’s Order free (subsequent CO are chargeable
at $20.00 each)

Late Payment Fee $50
Partial Repayment 2% of prepaid amount
Full Repayment 2% on outstanding loan amount




Singaporean or Singapore PR

21 to 59 years old

Sole Applicant must be earning at least S$24,000 per annum.

For Joint Application, at least 1 applicant must earn a
minimum income of $24,000 per year.