A renovation loan in Singapore is a purpose-restricted personal loan that the bank pays straight to your contractor, and it caps at S$30,000 or six times your monthly income, whichever is lower. That cap surprises most first-time HDB owners whose quotes have crept past S$40,000. In October 2026 the renovation loans that publish a rate run from 2.50% (Maybank's first-year rate for its HDB home-loan customers) to 4.88% per annum (DBS's standard rate), but the figure that actually decides your monthly bill is the EIR: DBS, the only bank that publishes one, quotes 4.49% to 5.96%. Below is what each bank charges, the fees that don't show up in the headline rate, and how to fund the gap when S$30,000 isn't enough.
A renovation loan is ring-fenced for works that are physically attached to your home: hacking, tiling, electrical and wiring, built-in carpentry, plumbing, painting, and the contractor's labour. Banks disburse the money directly to your renovation company against an invoice or signed quotation, not into your own account. A standard personal loan, by contrast, lands in your bank account and you can spend it on anything.
That distinction is why the renovation rate is usually lower than a general personal loan rate. The bank treats a documented renovation contract as lower risk, and some banks reserve the right to do a site visit to confirm the money went where you said it would. If you want to buy a sofa, a fridge, or curtains, those are furnishings, not renovation, and they fall outside what a renovation loan will cover. For a furniture-and-appliances budget you would draw a separate personal loan or pay cash.
If you are weighing this against using your housing budget, the HDB loan vs bank loan comparison is worth reading first, because your renovation borrowing sits on top of your mortgage in the bank's affordability sums.
Almost every bank caps a renovation loan at S$30,000 or six times your gross monthly income, whichever is lower. So if you earn S$4,000 a month, six times that is S$24,000, and S$24,000 becomes your ceiling rather than S$30,000. The cap is per renovation, and DBS, for example, lets you hold at most two renovation loans whose combined balance still cannot exceed S$30,000.
Joint applications change the maths slightly. Banks typically use the lower earner's income for the multiple but still apply the same S$30,000 dollar cap, so a couple does not get to borrow S$60,000 on a single renovation loan. HSBC no longer sells a renovation loan. It points renovators to its Personal Loan instead, which lends up to eight times monthly income and is not bound by the S$30,000 renovation cap.
There is also a debt-servicing limit underneath all of this. Your total monthly debt repayments, including the new renovation instalment, your mortgage, and car or other loans, should not push past 55% of your gross monthly income. Run your numbers through the renovation cost calculator before you apply so you know whether your quote fits inside the cap or you need a top-up plan.
Update, 14 October 2026: OCBC has stopped offering renovation loans, HSBC now sells only a general Personal Loan, and Maybank's renovation loan is open only to its own home-loan customers, so the table has fewer rows than before. Banks lead with a headline rate, but the effective interest rate (EIR) is the honest number, because it folds in the fees and the way interest is charged. Always compare on EIR. DBS's 3.38% rate, for example, is an EIR of 4.49% once its 2% handling fee and 1% insurance premium are counted. The table below shows advertised figures as of October 2026; promotional rates move often, so confirm on the bank's own page before you sign.
Watch the one-off costs too. A 1.55% to 2% handling or processing fee on a S$30,000 loan is S$465 to S$600 deducted upfront, and DBS adds a 1% insurance premium on top. Repaying early costs extra as well: DBS charges 1% of the outstanding loan and Maybank 2% of the amount you prepay, so paying it off ahead of schedule is not free.
| Bank / product | Flat rate p.a. | Tenure | One-off fee | Min annual income |
|---|---|---|---|---|
| DBS Renovation Loan (DBS home-loan customers, apply by 31 Dec 2026) | 3.38% (EIR 4.49%) | 1 to 5 yrs | 2% handling + 1% insurance | S$24,000 |
| DBS Renovation Loan (standard) | from 4.88% (EIR 5.96%) | up to 5 yrs | 2% handling + 1% insurance | S$24,000 |
| Maybank Renovation Loan (Maybank home-loan customers only) | 4.08% (2.50% in year 1 for HDB home-loan customers); EIR not published | 3 to 5 yrs | 2% (min S$200) | S$30,000 |
| CIMB Renovation-i | Not published | Not published | 1.55% | Not published |
Maybank's 2.50% looks far cheaper than DBS's 3.38%, but it lasts only the first year, needs a Maybank HDB home loan and a tenure of at least three years, and Maybank publishes no EIR to compare. A longer tenure also lowers the monthly instalment while raising total interest paid. The cheapest monthly payment and the cheapest total cost are rarely the same loan.
Renovation loans are open to Singapore Citizens and Permanent Residents, generally aged 21 and above (DBS lends up to age 65, and Maybank wants the loan repaid by 55). Minimum income is S$24,000 a year at DBS and S$30,000 at Maybank. Banks check your credit record through Credit Bureau Singapore, so clear any overdue cards or existing personal loans first, because a thin or blemished credit file is the most common reason a clean-on-paper applicant gets a higher rate or a rejection.
Approval is fast when your paperwork is in order. Several banks give in-principle approval in about a minute through Singpass MyInfo, and funds are disbursed in three to five working days, though DBS quotes five to seven working days. Have your latest payslips or Notice of Assessment, your renovation quotation or signed contract from a licensed contractor, and your NRIC ready before you start.
Renovation budgets for a four-room HDB resale flat now routinely run S$40,000 to S$60,000, so the cap leaves many owners short. The cleanest fix is to split the funding: take the renovation loan for the attached works, pay for furniture and appliances in cash or on a 0% instalment plan, and stagger non-urgent works to a second phase. Phasing also lets you live in the flat and see what you actually need before spending.
If you still need more borrowed money, a general personal loan can top up the gap, but the rate is usually higher and it counts toward the same 55% debt limit. Compare the all-in cost before stacking loans, and never use a licensed moneylender for renovation unless it is a genuine emergency, because their interest is capped at 4% per month, which is roughly 48% a year before fees of up to 10%. Building the cash buffer first is cheaper than any loan, and the savings goal calculator helps you set a realistic down-payment-for-reno target.
For the planning side of a fit-out, our guide on the renovation checklist keeps your scope and your loan amount aligned so you are not borrowing for works you could defer.
You can borrow up to S$30,000 or six times your gross monthly income, whichever is lower. So someone earning S$4,000 a month is capped at S$24,000, not S$30,000. HSBC no longer sells a renovation loan; its Personal Loan lends up to eight times monthly income instead.
A renovation loan is paid directly to your contractor and can only fund works attached to the home, such as tiling, carpentry, and wiring. A personal loan is paid to you and can be spent on anything, including furniture, but usually carries a higher interest rate than a purpose-restricted renovation loan.
As of October 2026, advertised renovation loan rates run from 2.50% (Maybank's first-year rate for its HDB home-loan customers) to 4.88% per annum (DBS's standard rate). DBS is the only bank that publishes an effective interest rate (EIR), 4.49% to 5.96%. Always compare on EIR, because it reflects the fees and the way interest is charged.
No. Renovation loans cover only works physically attached to the home, like built-in cabinets, flooring, and electrical works. Furniture, fridges, and other movable items are furnishings and are excluded. Fund those with cash, a 0% instalment plan, or a separate personal loan instead.
This is general financial information for Singapore, not personal financial advice. Figures change, so verify current rates against the official sources above before acting. See our full disclaimer.
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