Smart ways to finance your renovation

Oftentimes, renovation comes to be one of the bigger financial investments you have to make in your life. No one is denying that it is costly — an average homeowner in Singapore aims for a renovation that looks to be a whopping SGD$60,000! But fret not! There are plenty of options you can have in managing your finances for your home renovation, and here are just a few ways to finance your renovation journey!
Interior Designer: Rezt & Relax
Having a Budget Plan
Before you begin the renovation, it is important to set out a concrete budget plan for all aspects of your renovation. It can be divided according to the rooms involved in the renovation, and different components needed for the rooms involved. Therefore, it would be helpful to be familiar with the materials involved, and their respective costs. Here are some of the major components to take note of!
Not all floors are created equal! Some flooring materials cost more than others. For example, some flooring like granite and marble would cost more per square feet than others like laminate and vinyl.
Additionally, different flooring types are optimal for different functions. Overall, the collective flooring cost for a typical HDB apartment can come up to between $6000 and $9000, depending on the size of your apartment (3 room, 4 room, or 5 room!). Here’s a handy guide to help you choose your dream flooring!
Other than flooring, another important component would be your home’s fixtures! The right lighting and plumbing fixtures can make a world of difference in terms of the feel and functionality of your apartment! Some of the more common types of fixtures include lights, ceiling fans, water heater, toilet bowl, and wash basin and corresponding tap.
Interior Designer: Corazon Interior
In these cases, the main costs involved are from the installations of the fixtures– the number of cable, lighting, and power points, for example. However, it must be noted that there are separate costs for additional installation work, such as wire concealment and plastering. And of course, the individual prices of these fixtures vary accordingly depending on your contractor, type, and brand of the fixtures.
Interior Designer: Ascenders Design Studio
Of course, don’t forget to install ample storage spaces for all of your knicks and knacks! These storage options can come in the form of your shoe cabinets, display cabinets, kitchen cabinets, and book cabinets for your study! If you’re tight on a budget, the best advice we can give you is to go for off-the-shelf products, instead of carpentry for your storage solutions. This will heavily reduce your costs!
Interior Designer: DB Studio
Paying by Tier (Renovation Loan)
Another important note is that savings alone may not be enough to finance the entirety of your renovation. The best alternative would be to obtain this amount via a renovation loan. In fact, there are a few reasons why a renovation loan may be a better option than other types of loans. For one, they have a lower interest rate as compared to personal loans, and with more lenient income requirements. Most banks, financial institutions and insurance companies in Singapore offer renovation loans which allow you to pay by tier, with interest rates varying between 4.38% to 5.38% per annum for a five-year loan tenure.
Here are some renovation loans offered by various banks in Singapore:
OCBC Renovation Loan Monthly Rest: 5.37% monthly rest,
Installments at $381 per month


RHB Renovation Loan: 5.8% monthly rest,
Installments at $385 per month


Maybank Renovation Loan: 5.38% monthly rest,
Installments at $381 per month


CIMB Renovation Loan: 5.37% monthly rest,
Installments at $381 per month


DBS Renovation Loan: 4.88% monthly rest,
Installments at $376 per month


Still unsure of which renovation loan to take? Well, it really depends on your financial situation and the type of HDB you’re taking out the loan for, so do sufficient research before committing to a loan!
Interior Designer: Bespoke ID
Have an effective payment schedule
Have you heard of the couple that paid $63,000 for renovation works that was never completed? An unfortunate incident, but it is entirely preventable! One way to do so is to have an effective payment schedule, taking into account all relevant information. Such information would include renovation deliverables by certain set dates, and corresponding progress payments for each deliverable completed. Here are some quickfire tips that get started:
In this industry, money is often equivalent to value and you get what you pay for, dollar for dollar. Often, these “low prices” are but a bait and switch tactic — they would persuade you to pay a deposit to secure the said low prices, but then increase their prices as the renovation goes along, and produce unsatisfactory work.
Interior Designer: Free Space Intent
The industry standard for a deposit is usually less than 25%, and anything beyond that is considered rather excessive. When a lump sum is offered at the beginning, be sure to double check on what’s included as this may not include additional costs for extra fixtures. Certain IDs may also change the price of the finishings, especially if there are changes to the product or design along the renovation process (and they are fully entitled to do so!)
So, whatever your dream home design maybe, it can become a reality as long as you plan your finances well!