Best Renovation Loan Rates in Singapore (2026): Comparing DBS, OCBC, UOB and More

Congrats! You’ve got the keys to your first home. As a rite of passage for homeowners, settling your downpayment and paying your mortgage is just step one. Next, comes the renovation works. Well, you can’t be living in a bare bones BTO or a resale unit with decades-old fixtures and pipings.

It’s all fun and exciting shopping for interior designers and planning out your ideal home. That’s until the quotes start coming in, and suddenly every built-in fixture and hacking come with a price tag.

Renovation can start at around $30,000 for a basic 3-room BTO, and that’s before you start shopping for furniture and appliances. If you’d rather not wipe out a good chunk of your savings before moving in, a renovation loan can help spread out the cost. 

Before you sign up for one, here’s what you’ll want to know about what it covers, how much it costs and what you’ll actually be paying every month.

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1. What is a renovation loan?

A renovation loan is money borrowed to pay for eligible renovation works in your home. Instead of paying the full renovation bill from your savings, you repay the lender in monthly instalments over an agreed period.

It’s separate from your home loan. While a mortgage finances the property itself, a renovation loan helps cover the cost of renovating it.

What can I use a renovation loan for?

Renovation loans don’t pay for everything that goes into your new home. They’re generally meant for the renovation works themselves, such as built-in carpentry, flooring, painting and electrical works.

Think of it this way: the built-in wardrobe may qualify, but the bed beside it probably won’t. If a large part of your budget is going towards furniture and appliances, you may need to use a personal loan for home renovation or pay for those purchases separately with credit cards.

ALSO READ: 10 Best Credit Cards for Buying Furniture and Electronics

How much can I borrow for renovation?

The amount you can borrow depends on your assessable income.

DBS Renovation Loan, for instance, lets you borrow up to 6 times your monthly income or S$30,000, whichever is lower. So even if your renovation quote is higher, the loan may not cover the full bill. 

In other words, don’t let a fanciful renovation concept eat up your budget before you’ve worked out how you’re going to pay for it.

It’s worth setting your renovation budget first, before deciding how much to borrow. Add up the works you actually need, decide how much you’re comfortable paying in cash, then work out how much you need the loan to cover.

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2. Should I get a renovation loan from a bank or my ID?

Your interior designer (ID) sends over the quotation and offers a financing plan at the same time. It can be tempting to take the convenient option, especially when you already have dozens of renovation decisions to make.

Remember: the renovation package and the financing are two separate decisions. Before signing up, check who is actually providing the financing and how the loan compares with other options.

Whichever route you take, look beyond the monthly instalment. Compare the amount you’re borrowing, the repayment period and, most importantly, the total amount you’ll pay over the life of the loan. A lower monthly instalment may simply mean you’re taking longer to pay off the same renovation bill.

Who am I actually borrowing the money from?

If your ID offers financing, find out who is actually providing the loan. The financing may come from a partner bank or licensed financial institution, rather than the ID itself.

Before signing, check whose name appears on the loan agreement, the interest rate, any applicable fees, and the terms for early repayment, including any penalties. Even if the financing is offered as part of your renovation package, the renovation contract and the loan are still two separate commitments.

Will the renovation loan money be paid to me or my contractor?

That depends on the type of loan you take.

With Standard Chartered CashOne, for example, the approved loan amount is disbursed to your designated bank account. If you’re using it to pay for your renovation, you’ll then handle the payments to your contractor yourself.

Before applying, check how and when the loan will be disbursed. If your contractor requires payment at different renovation milestones, make sure the funds will be available when you need them and that you’re clear on who handles each payment.

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3. Does HDB offer renovation loans?

While HDB offers grants for your homes, they don’t provide renovation loans.

When you hear people refer to an “HDB renovation loan”, they usually mean financing from a bank or financial institution that is being used to renovate an HDB flat. 

What HDB does regulate is the renovation work itself. Depending on what you’re doing to the flat, certain hacking, structural and other works may need to follow HDB’s renovation requirements.

Do I have to use an HDB-approved renovation contractor?

This is highly advisable, especially for renovation works that require an HDB-registered contractor. You can check HDB’s Directory of Renovation Contractors to see if a contractor is listed. However, being listed does not mean HDB guarantees the quality of the contractor’s work.

Do your own checks before paying a large deposit, including whether the company has been blacklisted as a renovation contractor.

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4. How much does a renovation loan actually cost?

Spotted a loan advertising a really low interest rate? Don’t apply just yet. That headline number doesn’t tell you the full cost of borrowing.

Fees and loan tenure matter too. One loan might advertise a lower rate but charge additional fees, while another could cost more each month but let you clear the debt sooner. So instead of simply picking the smallest percentage, look at what you’ll actually pay from start to finish.

What does EIR mean?

One term you’ll want to look out for is EIR, or effective interest rate. It gives you a more realistic basis for comparing the cost of different loans, as it takes the repayment structure and applicable fees into account.

Thankfully, you don’t have to work out the formula yourself. Banks will state the EIR for their loans, so when comparing offers, look at it alongside the fees, monthly instalment and total amount you’ll repay.

Why is the EIR higher than the advertised interest rate?

Many loans quote a flat interest rate, where interest is calculated using the original amount borrowed even as you gradually repay the loan.

Say you borrow $20,000 at a flat 4% p.a. for 5 years:

$20,000 × 4% × 5 years = $4,000 in interest

You’re expected to pay back $24,000 before other applicable charges.

Keep an eye out for the word “from”. A loan advertised at “from 1% p.a.” doesn’t mean you’ll automatically get that rate. It’s the starting rate, and the rate you’re actually offered may be higher depending on your profile.

What other fees do I have to pay?

Depending on the loan you pick, you could be paying a handling fee, insurance premium or annual fee on top of the interest.

• DBS Renovation Loan, for example, has a 2% handling fee plus a 1% insurance premium. 
• OCBC ExtraCash charges $200 or 2% of the approved amount, whichever is higher, for borrowers earning at least S$30,000 annually.
• Standard Chartered CashOne has a $199 first-year annual fee. On a $20,000 loan, deducting that fee leaves $19,801 disbursed. Its 5-year illustration puts the EIR at 2.15% p.a. after including the fee.

Planning to clear the loan early once your bonus comes in? Check the early repayment terms first. Standard Chartered CashOne, for example, charges $150 or 3% of your outstanding principal, whichever is higher. 

When you compare loans, look at what lands in your hands after fees, what you’ll pay each month and what the loan costs you by the time you’re done with it.

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5. What are the renovation loan rates in Singapore now?

Here’s where you’ll want to look beyond the headline interest rate. The loans below can all help fund your renovation, but they don’t necessarily work in the same way or give you the same flexibility over how the money is used.

DBS offers a renovation loan specifically for eligible renovation works, while UOB, OCBC and Standard Chartered offer personal loans that give you more flexibility over how you use the funds. So before your eyes go straight to the lowest rate, check where the money goes, what you can use it for and whether the loan fits your renovation plans.

*For OCBC ExtraCash applicants earning at least $30,000 annually.

Rates, fees and promotions quoted are current as of September 2026 and may change. Advertised “from” rates are not guaranteed.

Once you’ve narrowed down the numbers, think about what your renovation actually looks like. Someone spending heavily on carpentry and electrical works won’t necessarily need the same loan as someone keeping the renovation light but splashing out on furniture and appliances afterwards.

Based on how each loan works, here’s where they may fit:

• DBS Renovation Loan: For homeowners with most of their budget going towards eligible renovation works, such as carpentry, flooring, painting and electrical works.
• DBS Eco-aware Renovation Loan: For homeowners already planning qualifying greener upgrades, rather than changing their renovation plans just to get a different loan rate.
• UOB Personal Loan: For homeowners whose spending extends beyond the renovation itself into furniture, appliances and other move-in purchases.
• OCBC ExtraCash: For homeowners juggling multiple expenses and payment dates who want more control over how they allocate the borrowed funds.
• Standard Chartered CashOne: For homeowners who want cash available for several home-related expenses and are prepared to compare the actual rate offered to them.

Will I actually get the interest rate shown in the table?

Not necessarily. Pay close attention whenever you see the word “from”.

UOB Personal Loan starts from 1.00% p.a., while Standard Chartered CashOne starts from 0.90% p.a. These are starting rates, and the rate you’re actually offered may be higher depending on your credit profile and the lender’s assessment.

So rather than comparing the advertised rates alone, shortlist a few suitable options first, then compare the actual offers you qualify for.

Can I get a lower rate if I am servicing an existing home loan?

Possibly, so check your existing bank before sending out new applications.

Some banks have programmes that offer preferential renovation financing to existing home loan customers. 

DBS has a Renovation Loan package for eligible DBS Home Loan customers, while its Eco-aware Renovation Loan offers preferential pricing when your renovation includes qualifying greener choices, such as energy-efficient appliances, water-efficient fittings and environmentally friendly renovation materials.

These rates and programmes can change, so check what’s available when you’re ready to apply. Then compare the EIR, fees and repayment terms with the regular renovation loan and other banks before deciding.

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6. Should I take a renovation loan or a personal loan?

Still deciding between a renovation loan and a personal loan? Take another look at what you actually need to pay for.

If most of your remaining items are carpentry, flooring, painting or other eligible renovation work, a dedicated renovation loan may fit naturally. Whereas, if your shopping list consists of furniture—washing machine, sofa and dining table, a personal loan gives you more flexibility over where the borrowed money goes.

Once you know what needs financing, you can narrow down the loans that actually cover those expenses. From there, compare the EIR, fees and repayment period to see what works better for your budget.

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7. Should I choose a 3-year or 5-year renovation loan?

Remember, you’ll still be paying off the renovation costs long after the contractors have packed up and left. By then, that monthly instalment will be sitting alongside your mortgage, utilities and all the other bills that come with running a home.

• A 5-year loan spreads the cost further and gives you smaller monthly instalments. 
• A 3-year loan asks more from your monthly budget, but the debt disappears sooner.

Will a longer renovation loan cost me more?

It can. Lower monthly instalments do not necessarily mean a cheaper loan overall.

Look at both the monthly payment and the total amount repayable. If a shorter tenure fits comfortably into your regular budget, you can get the debt out of the way earlier. If it would leave every month feeling tight, spreading the repayments further may give you more breathing room.

The important part is choosing based on your post-move budget, rather than what feels affordable during renovation month.

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8. How much should I borrow for my renovation?

It’s tempting to treat your loan limit like a renovation budget, especially when there’s always one more upgrade to add. But borrowing more also means paying more interest and accumulating liability..

Start with the works you actually need, subtract what you’re comfortable paying in cash, then borrow for the gap. Just remember to leave some savings untouched for moving costs, appliances and those unexpected expenses that tend to show up after you get the keys.

For resale homes, that buffer matters even more. Hacking or electrical work can uncover repairs that weren’t obvious during your first viewing.

Should I use my savings or take a bigger renovation loan?

Using more savings reduces how much you need to borrow and therefore how much interest you pay. But there is little point finishing the renovation with a beautiful kitchen and almost no cash left for everything else.

You’ll still have moving costs, utility deposits, minor fixes and perhaps a few essential appliances to pay for after the contractors leave. Keep some cash aside for these instead of putting every last dollar into the renovation.

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9. What should I check before taking a renovation loan?

You do not need a spreadsheet with 20 columns. Start with five questions:

• How much do I actually need to borrow?
• What can I use the loan for?
• What is the EIR after applicable fees?
• How much will I pay each month and in total?
• What happens if I repay the loan early?

Use the same amount and tenure when you ⁠compare current renovation loan rates. If much of your spending falls outside renovation works, you can also ⁠compare personal loans.

ALSO READ: 10 Best Personal Loans in Singapore with Lowest Interest Rates (Sep 2026)

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10. One last tip: Don’t pay your renovation bill all at once

Once the loan is approved, don’t rush to hand the money over. Your renovation may take weeks or months, so your payments should follow the work as it gets completed.

⁠CaseTrust-accredited renovation businesses follow progressive payment schedules, with the initial deposit capped at 20%. Before paying each instalment, check that the agreed stage of work has been completed and keep the invoice or receipt afterwards.

That way, if the renovation gets delayed or there’s a disagreement over unfinished work, you haven’t already paid too far ahead.