Renovation Loan Singapore: what you can actually borrow
Every Singapore renovation loan stops at S$30,000, or six times your monthly income, whichever is lower. Most renovation budgets do not. This page covers the cap, the gap between the advertised rate and what you really pay, and the point at which borrowing against your property becomes the cheaper answer.
A renovation loan is the most misunderstood product in Singapore home financing. It is not a mortgage, it is not secured against your property, and it is far smaller than most people expect. Understanding those three facts before you sign a contractor's quotation will save you more than shopping for a slightly lower rate ever will.
The S$30,000 ceiling is the whole story
Whatever the marketing says, a Singapore renovation loan is capped at the lower of six times your monthly income or S$30,000. Someone earning S$4,000 a month is capped at S$24,000, not S$30,000. The ceiling is uniform across banks, so there is no lender to shop for a bigger number from.
For context, a full renovation of a four-room HDB flat commonly lands somewhere between S$45,000 and S$70,000, and a condominium fit-out routinely runs past S$100,000. The renovation loan is therefore rarely the whole answer. It is the cheap first tranche, and the question that actually matters is how you fund the balance.
Flat rate versus EIR: the number banks lead with is not the number you pay
Renovation loans are advertised at a flat rate, charged on the full original principal for the entire tenure even though you are repaying the balance down every month. The figure that reflects your real cost is the effective interest rate, and it typically works out close to double the advertised flat rate.
A loan advertised at a low-single-digit flat rate can carry an EIR in the mid single digits or higher once the maths is done properly. Two banks quoting the same flat rate can also differ on processing fee, commonly around one per cent of the approved amount, and on insurance requirements. Ask every lender for the EIR in writing and compare only that.
What the money can and cannot be spent on
Renovation loan funds are not paid to you. They are disbursed by cashier's order made out to your contractor or interior designer, against quotations and invoices. Banks expect the spend to be structural and fixed: rewiring, plumbing, flooring, carpentry, tiling, painting, built-in fittings.
Loose furniture, appliances, curtains and soft furnishings generally fall outside the permitted scope. That distinction catches people out late, when the budget is already committed, so it is worth sorting at quotation stage rather than at drawdown.
Where the crossover sits: renovation loan or equity
This is the decision worth getting right. A renovation loan is unsecured, so it is priced for unsecured risk. An equity term loan is secured against your property, so it prices off the mortgage market instead. As of 1 September 2026, 3-month Compounded SORA sits at 1.1905%, which with a typical 0.8% spread puts secured borrowing around 1.99% per annum. That is a different order of cost from unsecured renovation financing.
It does not follow that equity always wins. An equity term loan carries legal and valuation costs of roughly S$2,500 to S$3,500, and those are fixed regardless of how much you draw. On a S$30,000 renovation the setup cost eats the rate advantage, and the renovation loan is usually the cleaner choice. Once the requirement runs past roughly S$80,000 to S$100,000, the secured route is normally materially cheaper across the full tenure, and it stretches repayment over the remaining mortgage term rather than compressing it into five years.
There is a middle case too. Many owners take the S$30,000 renovation loan for the fixed works and fund the balance through cash-out refinancing at the point their lock-in expires, which folds the renovation into a loan they were going to reprice anyway. If your lock-in ends within the next year, that timing is worth planning around.
Bank renovation loans in Singapore
Renovation loans are offered by DBS and POSB, OCBC, UOB, Maybank, CIMB, Standard Chartered and Hong Leong Finance, among others. The products are structurally similar because the S$30,000 cap and the disbursement rules are common to all of them. They differ on flat rate, processing fee, whether a fire insurance or credit-life policy is bundled, and how quickly they will disburse against a contractor's progress claims.
Because the rates move and the promotional tiers change, we do not publish a renovation rate sheet. We quote live across lenders when you ask. For current mortgage benchmarks, which drive the equity comparison above, see our SORA rate tracker and current mortgage rates.
HDB does not lend for renovation
A common misconception. HDB provides the concessionary loan for buying a flat, and nothing for renovating one. Every renovation loan in Singapore is a bank product, and the same S$30,000 cap applies whether you are renovating an HDB flat, an executive condominium, a private condominium or a landed home. If you are buying and renovating at once, sequence the mortgage first, because the renovation loan sits on your unsecured credit and can affect how the mortgage is assessed.
Frequently asked questions
How much can I borrow with a renovation loan in Singapore?
Singapore renovation loans are capped at the lower of six times your monthly income or S$30,000. That ceiling applies across banks and is not negotiable. If your renovation budget exceeds S$30,000, the shortfall has to come from cash, a personal loan, or secured borrowing against the property such as an equity term loan or cash-out refinancing.
Is the advertised renovation loan rate the rate I actually pay?
No. Banks advertise a flat rate, which is calculated on the original principal for the whole tenure even though your balance falls every month. The figure that reflects what you actually pay is the effective interest rate, or EIR, and it is usually close to double the flat rate. Always compare renovation loans on EIR, never on the headline flat rate.
Can I use a renovation loan to buy furniture or appliances?
Generally no. Renovation loan funds are disbursed by cashier's order made out to your contractor or interior designer, not to you, and banks require quotations and invoices tied to structural and fitting works. Loose furniture, appliances and soft furnishings normally fall outside the permitted scope.
Does HDB provide a renovation loan?
No. HDB lends for the purchase of a flat through the HDB concessionary loan, but it does not offer renovation financing. Every renovation loan in Singapore is a bank product, available for HDB flats, executive condominiums, private condominiums and landed homes alike.
When is an equity term loan cheaper than a renovation loan?
Once the amount is large enough for the secured rate to outweigh the fixed setup costs. A renovation loan typically carries an EIR in the mid single digits to around nine per cent, while an equity term loan against your property prices off the mortgage market, currently around 1.99% per annum based on 3-month Compounded SORA at 1.1905% as of 1 September 2026 plus a typical 0.8% spread. An equity loan carries legal and valuation costs of roughly S$2,500 to S$3,500, so on S$30,000 the renovation loan usually still wins on simplicity. Past roughly S$80,000 to S$100,000 the secured route is normally materially cheaper over the full tenure.
Work out the cheapest route before you sign the quotation
Send us your renovation budget and your current mortgage details. We will show you the renovation loan quantum you qualify for, the EIR across lenders, and the equity or cash-out alternative side by side, so the comparison is on total cost rather than headline rate. There is no broker fee. Banks pay our referral on disbursement.