Why Should You Get a Singapore Renovation Loan?

Our homes are the fruits of all the sweat and blood we’ve given so far to our careers. After consistent efforts, we can finally make the home of our dreams. 

However, as the years go by, and with the expansion of your family, it is possible that your dwelling will either need renovations or extensions. Are you expecting a new family member and need extra space? 

If that’s the case, an excellent idea might be to access a Singapore renovation loan. Not only does it allow you to expand your house’s square footage, but also subsequently increases its market value. 

One of the biggest perks of availing of a renovation loan is to improve the comfort as well as functionality of the rooms. It also addresses renovation projects that should have been touched years ago. Finally, it also customizes your chambers just how you want them to be.

So, Is It A Good Idea To Invest In Home Renovations?

The simple answer is yes! Home renovation, as financially rewarding as it sounds, also comes with great value. Every single penny that you invest has an effect on your dwelling which eventually yields a great ROI. 

Additionally, a home renovation loan in Singapore might also help you collect the necessary funds for insulation and stuff. This will eventually enhance the energy efficiency of the house. 

Do you wish to relocate to a new property? Then, you will be one of many. Singapore is an excellent country with ample opportunities for professional development. 

Sadly, the real estate market here is ultra-competitive; the prices of newly built homes are prohibitive for many families. Do you need extra space, or do you want to give a new look to your dwelling? 

Consequently, it is more rewarding if you opt for a flexible solution that won’t take up much of your time like a conventional loan. A reputed private moneylender can offer you a house renovation loan in Singapore. 

What Is the Approval Process for a Loan? 

The need for quick cash is unforeseen; no one knows when they will need one. Hence, in such a situation, it can take a lot of time for your conventional bank to pass the loan. 

As such, the very first alternative you can opt for is filling out an application and then uploading it to the online platform. This is generally offered by your local money lender or delivered in person at their physical location. 

Typically, this initial loan application will require you to fill in some basic information, such as your name and contact address, your National Registration Identity Card, and details about your income sources. 

Are you interested in a payday financial package? In that case, the validation of the documents you have uploaded will most likely be ready in less than 24 hours. However, for other types of packages, such as a renovation or an educational loan, the process could take between 48 and 72 hours. 

The money lenders to which you apply will verify your documentation, perform a credit assessment, determine your CBS credit score, evaluate the risk of the transaction, and either approve, reject, or negotiate the terms of the loan you are interested in. 

In most cases, the answer to your application should be received in less than four working days. At the same time, once approved, the money should reach your account in less than a week.

What Is the Necessary Documentation? 

First, the private money lender who handles the verification of your application will require information about your current workplace, your source of income, and proof of residence. The private lender will need a copy of your NRIC/FIN documentation and copies of your income tax statements. 

Along with that, you might also offer permanent residence proof including utility bills and a copy of your work contract. It is applicable if you have been employed by your present company for at least six months. 

In Singapore, you have to be at least 21 years or equivalent if you want to secure a loan. Additionally, you have to be a permanent resident of the state. 

Moreover, your annual income must be higher than $20,000, and your TDSR must not exceed 55%. 

The money lender that handles your application will review your credit score obtained through the CBS, discover your existing financial commitments, and determine if supplementary documentation for your application is necessary.

In the case of a Singapore renovation loan, the lender handling your case may require proof of property ownership, such as title deeds or sale and purchase agreements. Not least, in some cases, you may need to submit quotations for the contractor’s works and estimates of the total cost of the construction. 

A house renovation loan, depending on the amount you need, can be trickier to obtain than a payday one. However, in the long term, these types of financial instruments are worth it, and they will contribute to the enhancements of your dwelling’s market value.

What Are the Protections of a House Renovation Loan?

As with other financial instruments offered by private lenders, a house renovation loan obtained through a lender registered with the Monetary Authority of Singapore will be subject to the provisions of the Moneylenders Act of 2008. 

What are the protections for borrowers? For starters, the maximum interest rate for a Singaporean loan cannot exceed 4% per month. Moreover, the processing fee of the loan cannot exceed 10% of the total loan amount. What does this mean on paper? 

In SG, the maximum borrowing sum you can get for an HBD is either six times your monthly income or $30,000. Let’s suppose you qualify for the latter. In that case, for a 24-month repayment period, and with a processing fee of 2% and a yearly interest rate of 10%, at the end of the credit, you will be required to pay back $36,600, which is not bad. 

SG is a financially safe country in which investments and financial packages are protected and supervised by the Monetary Authority and the Minister of Law. Therefore, even if you obtain an unfavorable interest rate or repayment period, you can rest assured that your rights will be respected.

A Matter of Expertise and Customizability 

Do you want to access private funds for your projects? Do you need a quick cash influx with no questions asked? In that case, the best thing you can do is utilize the services of private lenders. 

Money lenders in SG provide financial packages, like house renovation loans, that cannot be found in the offerings of traditional banking institutions. Moreover, they are more willing to consider unconventional collaterals, structured repayment, or customized terms that generally would not be accepted by national banks. 

Plus, private lenders are accessible to the majority of Singaporeans; many of them specialize in financial packages designed for small entrepreneurs, and their monetary offers are accessible online. 

Are you short on time and want to compare multiple credits at the same time? Do you need a fast renovation loan? Then, you can’t do better than with a private lender. On top of that, their services are in a continuous process of adaptation. 

They are often more advantageous in terms of repayment terms or interest rates than national or international banks, and their services can sometimes be negotiated depending on your requirements.