Home Renovation Loans: Bringing You One Step Towards Your Dream Home
Coming home to a well done home is both welcoming and therapeutic. You’ll want to return home to a house that you like, where you can comfortably rest and spend quality time with your family.
There’s only one problem. Your house doesn’t meet all your needs. While you may be pleased with your investment, it doesn’t fit that perfect picture that you’ve had for as long as you’ve known you’ll buy a home.
Buying a home in Singapore isn’t cheap. You’ve therefore made a giant leap towards securing your dream. You can now begin day dreaming about renovations you can make to your home in order to make it picture perfect.
Perhaps you might have exhausted all your savings through the purchase of your new home. Here’s where Lending Bee’s Home Renovation loan can come in handy. Our Home Renovation Loan ensures that the cost of your home renovation is accounted for. This way, you won’t have to strain your finances to achieve your dream home.
Whether you are looking to make way for your growing family, build your dream kitchen or simply to spruce up your home, a home renovation loan might just be what you require.
Our Home Renovation Loan Offers:
Understanding Home Renovation Loans for Interior Design Costs / Refurbishment
The most expensive thing you’ll be purchasing in your lifetime is probably going to be your home. As such, home renovations are all the more important and a worthy investment considering the amount of money you actually spent purchasing your home.
That said, getting a home renovation in Singapore can be quite costly, depending on your scale of renovation.
Below is a table of the estimated cost of getting a home renovation and what they include:
|Type Of Housing||Cost|
|Built To Order (BTO) Flat||$30,000 - $60,000|
|Resale Flat||$30,000 - $100,000|
|Executive Condominium (EC)||$10,000 and above|
Your Home Renovation Loan Can Be Used For:
Budgeting For Your Home Renovation
As with all big ticket items, it’s important to consider and set aside a budget. After all, your finances are probably quite stretched after financing the purchase of the house.
Below is a list of things that will affect the cost of your home renovation:
Home renovations can really put a dent on your finances if they are not well thought out. The cost of your home renovation can vary vastly depending on the above factors. It pays to set aside enough funds to cater for your dream home.
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5 Ways To Budget For Your Home Renovation
The average cost of renovating a HDB is between $30,000 and $60,000. Renovating a resale flat can cost up to 50% more. Renovations are therefore not cheap. Thus, it’s important to do all you can to cut down on your costs while you strive to achieve your dream home
Determine Your Budget
By setting your budget, you’ll be considering your finances and being honest about what you can afford. This doesn’t mean that you will have to limit your renovations based on your current account balance.
Home renovation loans allow you to borrow money specifically for financing your renovation project.
If you do decide to take a home renovation loan to finance the project, be cautious not to overstretch your finances. This is especially true if you’re already servicing a mortgage loan.
It’s easy to do a simple google search and list down the various home renovation projects that catch your eye. However, it’s important to get your head out of the clouds and stay grounded. You should remember to differentiate your needs from your wants.
It’s important to ensure that the renovation meets your basic needs. These are those things that will make the home more functional for you and those living in it. You can consider adding some extras if you can still afford to. These include those things that appeal to your vanity such as expensive tiles for your kitchen backsplash.
Request And Compare Quotations
Requesting quotations is a great opportunity to compare different companies and determine which would be the best one to work with. A reliable contractor will take the time to visit your property and discuss your needs. They will then be better able to provide you with a quotation for their services. Never go with a firm that offers to give you a quotation without visiting your home.
A simple online search will bring up various professional contractors. Go through their websites or ratings and shortlist up to five of them. Get in touch with the firms to find out what services they offer and how much they would charge for the renovation.
Consider Doing Some Things Yourself
Are there aspects of the project that you can do yourself? Certain renovation tasks require specialized skills. These include tasks such as fitting electrical wires. However, there are some aspects of renovations that may not require technical skills.
Consider painting the walls yourself or installing IKEA shelves to customize your space. Doing some of the tasks yourself can help to bring down the costs of the renovation. You’ll also have a great sense of accomplishment from having contributed towards achieving your dream space.
Have A Contingency Fund
If there is anything that you can be certain of when carrying out a renovation project, it’s that your renovation is likely to run over budget. This happens in a good number of projects. It often leaves home owners frantically seeking extra funds in order to complete the project.
Don’t let this be your story. If you’ve received a quotation for S$30,000 on your renovation, you should budget to spend more than this. This will ensure that you’ll have a buffer in case you end up spending more on the project.
Budgeting for your home renovation keeps unecessary spends to a minimum.
Cost Of Home Renovation Procedures
The most expensive thing you’ll be purchasing in your lifetime is probably going to be your home. As such, home renovations are all the more important and a worthy investment considering the amount of money you actually spent purchasing your home. That said, getting a home renovation in Singapore can be quite costly, depending on your scale of renovation.
Below is a table of the estimated cost of getting a home renovation and what they include:
|Renovation Work||Expected Cost||Demolition (Hacking of walls)||$2,000 - $5,000|
|False ceiling and partitions||$200 - $8,200|
|Masonry (cement-related construction after hacking is completed)||$700 - $48,000|
|Plumbing||$200 - $5,300|
|Bathroom Fittings (Basics: sink, tap, toilet bowl, shower)||$4,000 - $8,000|
|Windows and grills||$500 - $10,800|
|Electrical & Lighting Fixtures||$300 - $6,500|
|Painting walls||$700 - $2,800|
|Carpentry Work (Built-in cabinets, shelves, etc.)||$900 - $77,500|
|Hidden costs (Cleaning)||$500 - $1,000|
Tips To Save On Your Home Renovation Costs
A home renovation loan is a great option if you don’t want to put a strain on your personal finances while creating your dream space. These loans differ from personal loans. They are designed specifically for renovations. Therefore, you cannot use the money for anything other than renovating your home.
The interest rates on renovation loans are much lower than personal loans. This is because lenders consider the project as an investment in your home, which is an asset. They are more willing to provide financing to enhance the value of an asset. The low interest rates are also a result of other restrictions placed on these loans including what type of enhancements the loans can be used to pay for and the fact that the money will be disbursed by the lender directly to the contractor.
However, even with the low interest rates, taking a home renovation loan isn’t a small matter. You’ll have to repay every cent you have borrowed plus interest. It’s therefore in your best interests to reduce the amount you will have to repay. You can do this by:
There are many licensed moneylenders who are willing to fund the cost of your home renovations. You should compare their interest rates as well as the terms of their home renovation loans before settling on any particular lender. There are various comparison websites that make comparing loans easy. You can use these sites to identify the loans with the best rates.
A great way to reduce the total amount you will need to borrow is to work in stages. This will allow you to save money for each stage of your renovation. You will therefore be able to pay for a greater percentage of the renovation from your own savings.
Start with the bare essentials and move on to other aspects of the renovation later. This may seem inconvenient at first, but it will save you a lot of money in the long run. This way, you will end up borrowing much less for the renovation.
It would be great to have the most expensive tiles and the perfect finishes for your renovation, but this isn’t always possible or practical. Your budget may not allow for this. You should instead try to source cheaper alternatives. If you’re set on using an expensive material, you should save for it.
- Avoid last minute changes to your plans – Making changes to your plans will result in rework. This may mean purchasing additional materials and more man-hours which will add up to your total costs.
- Take specs and measurements before you make a purchase – This will ensure that you purchase the right materials or products and get the right fit the first time. You won’t waste time or money.
- Be flexible with your design choices – You may have to choose cheaper materials in order to avoid exceeding your budget. You may also have to consider a different type of product or material if your first choice is out of stock.
- Check the renovation work at different stages – Regular thorough checks can help you identify defects. These defects can be rectified early. You will therefore avoid having to invest in extensive repairs down the line.
Looking for alternatives to fund your home renovation? A home renovation loan is just what you need.
Benefits Of Taking Out A Home Renovation Loan
1. Achieve the look of your dream home
Your home is probably something that you are going to spend a considerable time of your life in. Hence, it pays to spend a little more to design and furnish it to your liking. With a home renovation loan, you’ll be able to make up for the deficit in funds and turn your dream home into a reality.
2. Increase your home value over time
With the borrowed sum, you’ll be able to spruce up and make improvements to your property. Thereby increasing the value of your home should you wish to sell it in the future.
3. No collateral required
As we do not require collateral for you to take out a home renovation loan, the equity of your home will not be taken into consideration.
That said, a tip is to prioritize renovation works that require more work to be done. Does your bathroom require remodeling? Do you need to change the tiles of your living room? Does your apartment need repainting?
By prioritizing your renovation works, you will also in turn save on your renovation loan.
4. Receive your money in one lump sum
Rather than borrowing money from your friends and family who might not have the means to cover for the entire cost of your home renovation, you might wish to consider taking out a home renovation loan.
With a home renovation loan, you’ll be assured that you’ll receive the loan in one lump sum. This allows for you to play your home renovation costs and budget for any unexpected emergencies.
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