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 June 2026, advertised flat rates run from roughly 3.38% to 6.5% per annum across the main banks, but the figure that actually decides your monthly bill is the EIR, which sits closer to 3.5% to 7%. 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 is the notable outlier on income multiple, considering up to eight times monthly income for higher earners, though its renovation product still caps the dollar amount at S$30,000 or the actual contract sum.
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.
Banks quote a flat rate, which is misleading because it is charged on the full original amount for the whole tenure even as you pay the loan down. The effective interest rate (EIR) is the honest number, and it is usually 1.7 to 1.9 times the flat rate. Always compare on EIR. The table below shows advertised figures as of June 2026; promotional rates move often, so confirm on the bank's own page before you sign.
Watch the one-off costs too. A 1% to 2% handling fee on a S$30,000 loan is S$300 to S$600 deducted upfront, and some banks add a separate insurance premium or admin charge. HSBC carries no processing fee but an annual fee of S$120 from year two, plus a 2.5% penalty on early or partial redemption, 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 (promo) | from 3.38% | up to 5 yrs | 2% handling + 1% insurance | S$24,000 |
| HSBC Renovation Loan | from 1.83% (EIR 3.50%) | up to 7 yrs | Nil (S$120/yr from yr 2) | see HSBC criteria |
| OCBC Renovation Loan | approx 5.08% (EIR 5.70%) | up to 5 yrs | 0% first-year promo | S$24,000 |
| CIMB Renovation-i | approx 4.15% | up to 5 yrs | 1.2% | S$24,000 |
| Maybank Renovation Loan | approx 6.53% | up to 5 yrs | 1.25% or S$150 | S$30,000 |
HSBC's headline 1.83% flat looks far cheaper than DBS's 3.38%, but once you convert to EIR the gap narrows because the EIR bakes in fees and the declining-balance reality. HSBC's longer seven-year 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 (OCBC, for instance, sets an upper age of 59). Minimum income is most often S$24,000 a year for the cheaper bank products, with Maybank asking S$30,000. 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 considers up to eight times income for higher earners but still caps the dollar amount at S$30,000.
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 June 2026, advertised flat rates range from about 3.38% to 6.5% per annum across the main banks, which converts to an effective interest rate (EIR) of roughly 3.5% to 7%. Always compare on EIR rather than the flat rate, because the EIR reflects fees and the declining balance.
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 — verify current rates against the official sources above before acting. See our full disclaimer.