Home Renovation Loan

[Drexter 0]

Ok. But I dun really understand the meaning of their Flat [in Advance] @ 2.88% p.a and Effective Interest Rate @ 5.69% p.a for a 4yrs loan So when I sign up, I will be in which interest rate? 2.88% or 5.69% ?

I also dunno. New to this. Can share with us after u've asked them?

[Drexter 0]

After comparisons. Maybank is better as they offer cheaper subsequent cashier's order of $5, allow early settlement of 20% of payable interest pro-rated. Interest rate is about the same as the other banks (2.98%) flat.

[navik 0]

Seems like RHB giving free gifts when you take up their renovation loan lol. Does anyone know if we can do early repayment for RHB?

[Drexter 0]

Seems like RHB giving free gifts when you take up their renovation loan lol. Does anyone know if we can do early repayment for RHB?

No early repayment for RHB fixed rate.

[metalbone 0]

http://www.google.com.sg/url?sa=t&source=web&cd=17&ved=0CD0QFjAGOAo&url=http%3A%2F%2Finfo.maybank2u.com.sg%2Fpdf%2Floans%2Frenovation_loan_application_form.pdf&rct=j&q=reno%20Flat%20Rate%20Payable%20in%20Advance&ei=cF3bTYaKIInsrQf9sJDdDg&usg=AFQjCNGEH3UX76Ylr-9AKo4HIDtXoQBGxA&cad=rja

Looks like Maybank 2.98% flat rate is not really 2.98% effective interest rate.

Flat Rate Package

Interest for Renovation Loan is calculated on a flat rate, initial added on basis. Effective interest rate ranges between 5.62% p.a. and 7.97% p.a., depending on the package and the loan tenure selected

Loan Amount < S$15,000 3.68% p.a.

Loan Amount => S$15,000 2.98% p.a.

Bundled with Home Loan 2.88% p.a.

[diffy 0]

I think the best one will be to bundle yr reno loan with your home loan as you will get lower interest for your reno loan. Another thing is that even though they mentioned that the interest is 2.98%, actually they calculate based on effective interest rate, which should be around 5% plus.

[angelbutterfly 0]

Got 1 funny contractor told me that if I wish to loan 30k, then my quotation has to b 50k and above? Need to present so much? I calculated n the most I need is 40k and loan 30k the max...Pls enlighten me...tks

[Bluesummerayz 2]

Most banks gives you up to x times your monthly salary, or up to max 30k for reno loan. Usually they wont give you 100% of your quotation..

[Drexter 0]

My advise is if possible, try not to get reno loan. After consideration, we did not get reno loan and pay some of our big items (Aircon, Flooring, Mattress) with credit card 0% installment instead. In that way, u save a bit on interest.

[autobrakes3 0]

Unfortunately, Reno loan doesn't cover furniture or air-con.

[aryan82 0]

Yes,i agree,go for Maybank.

[stardust205 0]

Maybank and RHB provide the cheapest rates

[godloveyou 0]

Aiyo, don't anyhow sian, like firing canon.

Check this out.

http://www.sgrenoworks.com/

$50,000/5yr/5.8%, monthly instalment=$962, TOTal interest pay = $7719.82.

if reno loan interest rate is 5.8% per yr, means if u borrow $50k over 5yr , interest per yr = $2.9k hence total interest over 5yr = $14.5k right?

that being the case, better dont borrow to renovate

[Jolene 2]

Hi, pm me if u need to find out more on maybank reno loan.

[dolphinz 0]

so is there any special rates from maybank or ocbc for renovation loan?