Re: Renovation Loan

[furion0000 0]

Hi fellow forumers,

will be starting my renovation in Feburary.

Scouting for renovation loan.

Can any kind souls recommend banks that offer the lowest rates?

Also, my ID is sort of free lance, he does not have a company, in that case can apply for loan anot?

What are the procedures and the things to look out for?

And advice will be appreciated

[Batman 0]

u can try RHB. they have 1 of e lowest rate in town.

basically most banks offer flat rate, calculated based on simple interest method. that means if u loan S$30K (which is the max under MAS rule), interest p.a is at 3%, then for 1 yr, the interest is S$900 and 5yrs will be S$4500. add this to e principle and divide it by 60months n ur monthly will be S$575. even if u pay off early, the interests will still be as charged.

as for ur ID who is free lance, think it might be a problem as bank will be VERY wary in granting loans. reason being that ur 'reno' may not be a genuine case. and if ur ID has no HDB licence, then if sh*t happens, u will be 100% liable for any damages incurred. so better be careful when engaging freelance ID.

[cestlavie 0]

hmmm means if we never get any ID we cant apply renovation loan?

[frezhman 0]

hmmm means if we never get any ID we cant apply renovation loan?

it's not dat u muz get id. It means u muz he's licensed contractor OR id, n preferably listed under HDB. Go to HDB website to confirm whether they r legitimate or not. Else, it will be very hard to apply loan... But not impossible.

[lilithfiend 0]

what if we use various contractors (e.g. hacking, tiling, plumbing etc)? is it possible to get one loan to cover them all?

[hcbing 0]

lilithfiend, sorry if I'm hijacking this thread a little. I'm planning our renovation and would get a loan as well.

It seems that most of the quotes that I see in this forum usually doesn't include electrical works (re-wiring, electrical points, switches etc), which on average seem to come up to between $2-2.5K.

For those who are familiar with how reno loan works, would I be able to include this portion in the quote before submitting to the bank for loan application?

Thanks for your time.

[charemme 0]

lilithfiend, sorry if I'm hijacking this thread a little. I'm planning our renovation and would get a loan as well.

It seems that most of the quotes that I see in this forum usually doesn't include electrical works (re-wiring, electrical points, switches etc), which on average seem to come up to between $2-2.5K.

For those who are familiar with how reno loan works, would I be able to include this portion in the quote before submitting to the bank for loan application?

Thanks for your time.

lilithfiend & Hcbing:

1)do take note, when submitting for a loan, quotation is required as part of the documents.

If you are getting various contractor, im not sure if the bank will take in that.

2) for electrical works, id it done by your ID? For mine, its done by the same ID so we can take in under the same loan. We set a buffer of $2.5k for electrical work

hence its was indicated as a lump sum for loan purpose until the same reno quote/agreement.

Only when we finalise the electrical details, any surplus to be paid or refund separately at final reno stage

[lilithfiend 0]

Hi hcbing: no probs.

hi charemme, thanks for the reply..in that case, we'll have to get one main contractor then..sigh, was hoping to save some dosh by hiring individual contractors.

[charemme 0]

U can call the bank to check first before u proceed to seek out a contractor. also ask them what is their criteria for contractor .. eg hdb approved.

at the same time, u can ask the bank if they have some special rate for specified ID firms, because they do have some tie-up promo

For my case, RHB have some tie-up with my ID firm, so there is some special rate.

[lilithfiend 0]

ooooh is it? didn't know they had such tie-ups promo. okok will check out the banks..! thanks for the info!

[hcbing 0]

Thanks charemme and lilithfiend. Appreciate it.

[charemme 0]

welcome

[furion0000 0]

hi, to clarify some doubts regarding to my case, my property is a private property, thus the issue of registering with HDB is not an issue.

To some points raised here, it seems that if the ID does not have a registered company chances are the loan will not be given

The ID i am working with although is not a registered company, he does have a company name, namecards, website etc etc...

Does this helps?

The issue now is really three things,

First-Any recommendation for a good renovation loan available in the market

second-The things the banks will ask for when applying and the things to look out for

Third-The procedures i.e payment to IE, the schedule, the paper work etc etc..

thks

[blue218 0]

hi, to clarify some doubts regarding to my case, my property is a private property, thus the issue of registering with HDB is not an issue.

To some points raised here, it seems that if the ID does not have a registered company chances are the loan will not be given

The ID i am working with although is not a registered company, he does have a company name, namecards, website etc etc...

Does this helps?

The issue now is really three things,

First-Any recommendation for a good renovation loan available in the market

second-The things the banks will ask for when applying and the things to look out for

Third-The procedures i.e payment to IE, the schedule, the paper work etc etc..

thks

When I moved to my current condo, my ID is also a freelancer. In order to get the reno loan, he uses his friend's company to give me the quotation which I used it to get a reno loan.

[furion0000 0]

When I moved to my current condo, my ID is also a freelancer. In order to get the reno loan, he uses his friend's company to give me the quotation which I used it to get a reno loan.

hmm... sounds interesting... but is it safe...

like take money don't want to turn over to the rightful payee..

maybe i ask my ID...

BTW, any recommendation of good reno loan?

thks