Need Advice: To Apply A Renovation Loan Or To Use Savings?

[BlurryKid 0]

Hi, everyone!

What is the average renovation costs of a new standard 5-room flat these days?

Well, I have about S$50 K savings but am considering to keep for rainy days instead of using up for my renovations, what do you think?

I've checked on the RHB Reno Loan here: http://www.rhbbank.com.sg/personal/loans/RL%20rate.pdf

For S$30,000 @5.38% p.a., I just need to pay $571 over 5years...that's more affordable rather than to part with my S$50K emergency savings, don't you think so?

What's Furnishing Loan?

Please feel free to share

Actually I think if you have $50k best not to take loan or anything. Try to budget yourself to 25k reno and save the 25k for rainy days. cos if yours is a new flat $25k should be more than enough for basic reno. If its me I probably at max spend 20k including furnishings and save the other 30k up

Best to be prudent .

Edited September 11, 2012 by BlurryKid

[SeirenGrey 1]

Get a contractor instead of ID, buy lightings and some other home stuff from JB, buy furniture and appliances (in Singapore) and opt for 0% instalments over 12/24/36... there're many ways to save money!

[radha08 1]

Get a contractor instead of ID, buy lightings and some other home stuff from JB, buy furniture and appliances (in Singapore) and opt for 0% instalments over 12/24/36... there're many ways to save money!

bottomline small head wear small hat...

[lilipan 0]

I think that the most important is to purchase and renovate within your means, be it paying with your savings or taking up a renovation loan.

If you still require Renovation Loan after careful consideration, I think that you can try for CIMB Renovation Loan as it has the lowest Effective Interest Rate (EIR) at 4.58% per annum.

Other major banks like Maybank and DBS has EIR above 5%.  The EIR is the most important rate that you should loo at as it is the TOTAL INTEREST that you will pay on your loan. The flat interest and monthly rest rate are not as important. 

If you'd like to compare for yourself, you can refer to this website that has nicely and neatly done up the comparison table for Renovation Loans in Singapore.

Hope this helps!

Edited November 21, 2016 by lilipan

[Dgardel 1]

16 hours ago, lilipan said:

I think that the most important is to purchase and renovate within your means, be it paying with your savings or taking up a renovation loan.

If you still require Renovation Loan after careful consideration, I think that you can try for CIMB Renovation Loan as it has the lowest Effective Interest Rate (EIR) at 4.58% per annum.

Other major banks like Maybank and DBS has EIR above 5%.  The EIR is the most important rate that you should loo at as it is the TOTAL INTEREST that you will pay on your loan. The flat interest and monthly rest rate are not as important. 

If you'd like to compare for yourself, you can refer to this website that has nicely and neatly done up the comparison table for Renovation Loans in Singapore.

Hope this helps!

VERY INFORMATIVE THANK YOU

[jaiyerika 5]

Good read! very helpfull. keep the post coming☺

[ShaneCastillo 0]

I will apply for renovation loan.