Renovation Loan

[Ah Boy]

Anyone got good reno loan lobang

[mhhouse]

RHB is not bad - their rates is around 5 - 6%. Money lenders also tend to have pretty low rates. A friend of mine loaned from Hitachi Finance previously but don't know whether they are still around...

[HalcyonVI]

You have to be careful when sourcing for a renovation loan. Don't just look at the stated interest rates and do ask the bank or money lender about the effective interest rate and other charges. Banks will normally charge admin/processing/insurance fees of 1% to 2% of the renovation loan amount. Some banks will deduct this sum from your loan at the onset whereas others will need you to pay from your own pocket. Also, some lenders will charge for cashier's orders (the cashier's order is for paying out the renovation loan to your contractor/interior designer). The reno loan instalment computation method is also very important. The effective interest rate for a 3% flat rate (instalment is computed like a car loan) is going to be around 7% whereas the effective interest rate for a 3% monthly rest interest rate (instalment is computed like a housing loan) is going to be much lower.

[Ah Boy]

thank u very much

[jimmy1978]

DBS - if you already have a home loan with them, you can get a renovation loan from them at 4.8% p.a

[kynastonlaird]

Thanks to all for providing such valuable information about renovation loan as I was really looking for such kind of stuff. All of you have made it very easy to understand. This information is extremely useful for everyone who wants to do renovation of their home.