A renovation loan in Singapore is a small, fixed-purpose instalment loan that pays only for home improvement works, and it is hard-capped at six times your monthly income or S$30,000, whichever is lower. That cap is set by the banks, not chosen by you, so the real questions are which lender gives you the lowest effective interest rate, what the processing fee adds on top, and whether a plain personal loan would actually be cheaper. As of June 2026, advertised rates run from roughly 2.22% to 6.53% per annum, and the gap between the advertised number and the EIR you actually pay is where most people overpay. This guide walks through the figures, the catch in the fees, and the cases where you should skip a reno loan entirely.
A renovation loan is ring-fenced credit. The bank disburses it by cheque or transfer made out to your appointed contractor or interior designer, not to you, and it will ask for the renovation contract or quotation before approval. You cannot draw the cash and spend it on furniture, a holiday, or your wedding. That restriction is the whole reason reno loans tend to price cheaper than open-ended borrowing.
The eligible works are the fixed parts of the home: flooring and tiling, carpentry such as built-in wardrobes and kitchen cabinets, electrical rewiring and lighting, plumbing, painting, hacking and structural alterations, door and window replacement, air-conditioning installation, and increasingly solar panel installation under "green" reno loan variants. What it will not cover is loose furniture, appliances, curtains, and decor, since those are not affixed to the property. If your wishlist is mostly soft furnishings and a fridge, a reno loan is the wrong tool.
Every major bank applies the same ceiling: up to six times your monthly income, or S$30,000, whichever is lower. A S$30,000 cap means someone earning S$5,000 a month already maxes out the dollar limit, while someone on S$3,000 is capped at S$18,000 by the salary multiple. Tenure runs from one to five years at almost every bank, with a handful stretching to seven. Longer tenure lowers the monthly instalment but raises total interest, so do not default to the maximum without running the numbers.
If your renovation budget is genuinely above S$30,000 (not unusual for a resale flat or condo), a single reno loan will not cover it. Most people then top up with a personal loan, savings, or a redrawn home loan. Before you commit, model the full cash-flow against your other housing costs with the renovation cost calculator and check the instalment fits inside your monthly budget. Stacking a reno loan on top of a fresh mortgage is where new homeowners get squeezed.
The single most important number is not the advertised rate, it is the effective interest rate (EIR). Reno loans quote a flat ("add-on") rate, which is charged on the original principal for the whole tenure even as you pay it down, so the true cost is always higher. The EIR roughly doubles a low flat rate. Always compare lenders on EIR, not the headline figure.
The table below shows representative figures as of June 2026. Bank promotions change monthly and your actual offer depends on your credit profile, so treat these as "from" rates and confirm on the provider's own page before applying. Note the split: traditional reno loans from DBS, OCBC and Maybank sit in the 3% to 6% range, while several banks now let you fund renovation through a low-rate personal loan or instant loan at a much lower EIR.
| Lender / product | Advertised rate (p.a.) | EIR (from) | Processing fee | Max amount |
|---|---|---|---|---|
| DBS Renovation Loan | 3.38% | around 6.6% | 2% handling + 1% insurance | 6x salary or S$30,000 |
| OCBC Renovation Loan | 5.08% | around 5.70% | 1% admin (waivers run periodically) | 6x salary or S$30,000 |
| Maybank Renovation Loan | 4.08% (2.50% yr 1 for home-loan customers) | varies | 1.25% or S$150, whichever higher | 6x salary or S$30,000 |
| CIMB Renovation-i Financing | from ~4.15% | around 5% | 1.2%, no admin fee | 6x salary or S$30,000 |
| Trust Bank Instant Loan | 2.22% | from 2.28% | S$0 (0.88% annual fee from 25 Feb 2026) | credit-limit based |
| Standard Chartered CashOne | from 0.90% | from 1.75% | S$0 (first-year fee may apply) | income-based, up to ~4x |
A reno loan's true price is the rate plus the upfront fees. DBS, for instance, charges a 2% handling fee and a 1% insurance premium on the approved amount, both taken before disbursement, so a S$30,000 loan loses S$900 to fees on day one. OCBC charges around 1% admin (with periodic waivers), Maybank charges 1.25% or S$150 (whichever is higher), and CIMB charges 1.2% with no separate admin fee. These fees are exactly why the EIR sits so far above the flat rate.
Watch the exit costs too. Early or full repayment usually triggers a prepayment penalty of 2% to 3% of the outstanding balance, which kills the idea of clearing the loan early to save interest. Trust Bank, for example, charges a 3% early repayment fee. Factor the fee in before you assume paying off ahead of schedule is the frugal move.
A personal loan is unsecured cash you can spend on anything, including furniture and appliances a reno loan rejects. The trade-off used to be a higher rate, but in 2026 several personal and instant loans (Standard Chartered, UOB, CIMB, Trust) advertise EIRs from under 2%, undercutting traditional reno loans. If your works are simple, your credit is strong, and you want the flexibility to also buy a sofa, a personal loan can be both cheaper and looser.
Across the major banks you need to be at least 21, with a minimum annual income that typically starts around S$24,000 for DBS and OCBC reno loans and S$30,000 for products like Maybank and Trust. Foreigners face higher income bars (often S$60,000 for Trust) and not every bank lends to them. You will also pass a standard credit check, and your existing debt counts against you, so clear high-interest balances first if you can. If you are also juggling a mortgage, read up on the full home-buying journey so the reno loan does not blindside your cash flow at key collection.
The application itself is quick. Have your NRIC, latest payslips or CPF contribution history or Notice of Assessment, and the signed renovation quotation ready. Apply online, get in-principle approval (often within a day), then the bank disburses straight to your contractor in tranches tied to work milestones. If you are weighing this against an existing debt load or other borrowing, sort that picture out before adding a reno loan on top.
If you have the cash and your renovation is modest, paying outright avoids every fee and the interest entirely. Borrow only the gap you genuinely cannot fund, and keep an emergency buffer untouched, since a fresh home is exactly when surprise costs land. A reno loan makes sense when the works are large and fixed, you want to preserve liquidity, and your home-loan bank offers a discounted rate you cannot beat elsewhere.
Avoid the trap of borrowing the full S$30,000 just because it is approved. Interest on money you did not need is pure loss. Run your numbers, compare on EIR including fees, and if a low-EIR personal loan covers both your reno and your furniture more cheaply, take that instead. The cheapest renovation loan is often the smaller one.
Banks cap renovation loans at six times your monthly income or S$30,000, whichever is lower. So if you earn S$5,000 a month you hit the S$30,000 dollar ceiling, while a S$3,000 salary limits you to S$18,000 under the salary multiple.
No. Renovation loans quote a flat rate charged on the full original principal for the whole tenure, even as you pay it down. The effective interest rate (EIR) you actually pay is always higher, often roughly double the flat rate, which is why you should compare lenders on EIR and fees, not the headline number.
No. A renovation loan only funds fixed works like flooring, carpentry, electrical, plumbing and painting, and it is paid directly to your contractor. Loose furniture, fridges, washing machines and curtains are not covered. For those you would need savings or a personal loan, which lets you spend on anything.
It depends on the offer. Traditional renovation loans from DBS, OCBC and Maybank carry EIRs from around 5% to 6.6%, while several 2026 personal and instant loans advertise EIRs from under 2%. If your credit is strong, a personal loan can be both cheaper and more flexible, so compare both on EIR including all upfront fees.
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.