🏠 Property · Buying & Selling Process · Sub-Silo 5 · Tool #6

Home Renovation Loan Calculator Singapore 2026
S$30,000 MAS Cap, Flat Rate vs EIR, Monthly Repayment & Full Amortisation Schedule

Calculate your Singapore home renovation loan monthly repayment, total interest, and full amortisation schedule. Renovation loans in Singapore are capped at S$30,000 (or 6× monthly income, whichever is lower) by MAS regulations — making them one of the most misunderstood products. Banks advertise flat rates (e.g., 3% p.a.) which look attractive, but the true cost is the Effective Interest Rate (EIR) — roughly 1.8× the flat rate. This calculator converts flat to EIR, shows the true monthly cost, and compares all five tenure options (1–5 years) so you find the optimal term for your renovation budget.

✓ S$30,000 MAS Cap Check ✓ Flat Rate to EIR Conversion ✓ Full Amortisation Schedule ✓ 1–5 Year Tenure Comparison ✓ Total Renovation Budget
MAS CapS$30,000
Income Cap6× Monthly
Flat Rate~3%–5%
EIR~5.5%–9%
Tenure1–5 Years
🔨 Renovation Loan Inputs
Loan Amount
S$
S$

MAS caps renovation loans at the lower of S$30,000 or 6× monthly income. If your monthly income is S$4,000, your cap is S$24,000. Enter your income to check if your requested amount exceeds the cap.

Interest Rate
% p.a.

Banks advertise renovation loans using flat rates (e.g., 3% p.a.) which appear low. The true EIR is approximately 1.8× the flat rate (3% flat ≈ 5.46% EIR). Always compare loans using EIR, not flat rate. This calculator converts between the two.

Loan Tenure

Shorter tenure = lower total interest but higher monthly payment. Longer tenure = more interest but lighter monthly burden. The tenure comparison table shows all 5 options.

Renovation Budget Planning
S$

Enter additional cash you plan to spend on renovation beyond the loan. The total renovation budget = loan + cash.

🔨 Loan Result
🔨

Enter loan amount, interest rate (flat or EIR), and tenure to see monthly repayment, EIR, total interest, amortisation schedule, and tenure comparison.

Principal vs Total Interest by Tenure

Singapore Home Renovation Loan 2026 — MAS Cap, Flat Rate Trap & How to Choose the Right Loan

A renovation loan in Singapore is an unsecured personal loan specifically for home renovation purposes. Unlike home equity or mortgage products, it does not require your property as collateral. MAS (Monetary Authority of Singapore) caps renovation loans at S$30,000 because they are unsecured — lenders cannot seize your home for default. The most common consumer trap: banks advertise renovation loans at low flat rates (2.5%–5%) which are computed differently from mortgage rates — the true cost (EIR) is significantly higher.

Flat Rate vs EIR — The Hidden Cost of Renovation Loans

Flat Rate (Advertised)Approximate EIRMonthly (S$30K, 3yr)Total Interest
2.5% p.a. flat~4.55% EIR~S$894~S$2,180
3.0% p.a. flat~5.46% EIR~S$903~S$2,508
3.5% p.a. flat~6.37% EIR~S$912~S$2,832
5.0% p.a. flat~9.10% EIR~S$950~S$4,200

Banks Offering Renovation Loans in Singapore 2026

BankFlat RateEIRMax Tenure
DBS Renovation Loanfrom 3.0%~5.46%5 years
OCBC Renovation Loanfrom 3.5%~6.37%5 years
UOB Renovation Loanfrom 3.68%~6.69%5 years
Standard Charteredfrom 4.5%~8.18%5 years
Citibankfrom 3.5%~6.37%5 years

Rates change frequently. Always check the bank’s current promotional rate and get a written quote. EIR values are approximate based on 3% flat × 1.82 formula for equal monthly instalment (EMI) loans.

How This Renovation Loan Calculator Works — EIR, Schedule & Budget

Step 1 — Enter Amount, Rate, and Tenure

Enter the loan amount (max S$30,000 for bank renovation loans), select whether the bank quoted a flat rate or EIR, enter the rate, and select tenure. Optionally enter your monthly income to check the 6× cap. The calculator auto-converts between flat rate and EIR, showing both clearly.

Step 2 — View Monthly Repayment and Total Interest

The result shows the precise monthly instalment based on EIR, total repayment, and total interest over the loan tenure. The tenure comparison table shows all five options (1–5 years) side by side at the same rate — making the trade-off between monthly payment and total interest crystal clear.

Step 3 — Total Renovation Budget

Enter additional cash budget to see your total renovation budget (loan + cash). The stacked bar chart shows principal vs total interest by tenure — longer tenures visibly increase the red interest bar while keeping the green principal fixed.

3 Real Singapore Renovation Examples — BTO 4-Room, Resale 5-Room & Executive Condo

BTO 4-Room, S$30K Loan, 3yr

Loan (max cap)S$30,000
Bank rate (3% flat)EIR 5.46%
MonthlyS$903/mo
Total interestS$2,508
Cash budgetS$20,000
Total reno budgetS$50,000

Resale 5-Room, S$25K Loan, 5yr

LoanS$25,000
Rate (3.5% flat)EIR 6.37%
Monthly (5yr)S$488/mo
Monthly (3yr)S$760/mo
Extra interest (5yr vs 3yr)+S$1,150
Verdict3yr saves S$1,150

EC, S$30K Loan, Income S$4K

MAS cap (6× S$4K)S$24,000
Requested amountS$30,000 ✗
Approved maxS$24,000
Monthly (3yr, 3% flat)S$722/mo
SolutionTop-up S$6K cash
Total budgetS$30,000

3 Expert Renovation Loan Tips — HDB Contractors, Interest-Free Hacks & Timing

1

HDB Flats: Use Only HDB-Registered Renovation Contractors

For HDB flat renovations, MAS and HDB have separate requirements. HDB requires renovation permits for structural work (hacking walls, adding/removing doors, wet area works). All contractors doing HDB renovation must be HDB-registered — check the HDB Renovation Contractor Search at the HDB portal. Non-registered contractors risk penalty for both the contractor and the flat owner. Note: renovation loan proceeds are paid to a designated contractor account (not to you directly) by most banks — ensure the contractor accepts this. Banks typically require an approved quotation from the contractor before disbursing the renovation loan.

2

Use 0% Interest Instalment Plans for Large Purchases Within Renovation

Many renovation components can be bought on 0% instalment payment plans (IPP) via your credit card — flooring suppliers, kitchen cabinet showrooms, appliance retailers, and furniture chains often offer 0%/12 months or 0%/24 months. A S$8,000 kitchen on 0%/24mo = S$333/month with zero interest. Used strategically, IPPs can reduce the renovation loan amount needed (and therefore the interest paid). Example: S$30,000 total renovation; S$12,000 via 0% IPPs; S$18,000 renovation loan. Your loan interest drops by ~40%. Always compare: 0% IPP available vs renovation loan at 5.46% EIR — 0% IPP always wins.

3

Apply for the Renovation Loan Before or With Your Mortgage — Not After

A renovation loan is an unsecured personal loan that affects your credit utilisation and debt obligations. Taking a S$30,000 renovation loan after your mortgage is approved is fine — the mortgage lender has already assessed your finances. However, if you are applying for a renovation loan and a mortgage simultaneously, the renovation loan’s monthly repayment (e.g., S$903/month) is counted in your TDSR (capped at 55% of income), potentially reducing your eligible mortgage amount. Sequence: complete your mortgage first, then apply for the renovation loan post-key collection. This avoids the renovation loan eating into your mortgage eligibility.

16 FAQs — Singapore Renovation Loan 2026, S$30K Cap, EIR, HDB Rules & Contractor Payment

What is the maximum renovation loan in Singapore?+
MAS regulations cap renovation loans at the lower of S$30,000 or 6× the borrower’s monthly income. This applies to bank renovation loans (dedicated renovation loan products). Example: if your monthly income is S$4,000, your renovation loan cap is S$24,000 (not S$30,000). If your monthly income is S$5,500 or above, the 6× cap is S$33,000+, so the S$30,000 absolute cap applies. This MAS regulation aims to prevent over-borrowing on unsecured renovation debt. If you need more than S$30,000, the excess must come from cash savings, CPF (not allowed for renovation), or a personal loan (different product, higher rate, no renovation-specific restriction).
What is the difference between a flat rate and EIR for renovation loans?+
A flat rate is computed on the original loan principal throughout the entire tenure, regardless of how much you have repaid. A 3% flat rate on S$30,000 for 3 years = S$30,000 × 3% × 3 = S$2,700 total interest. The EIR (Effective Interest Rate) is the true annualised rate reflecting that you progressively repay principal — so you owe less as time goes on. For the same loan, EIR ≈ 5.46% (3% flat × 1.82). Banks advertise flat rates because they look lower. MAS requires banks to disclose EIR, but flat rates dominate advertising. Always compare renovation loans using EIR — not the flat rate headline.
Can I use CPF for renovation?+
No. CPF funds cannot be used for home renovation. CPF OA is only for: property purchase down payment, monthly mortgage instalments, and approved insurance (HPS). Renovation must be funded by: cash savings, a renovation loan, credit card instalment plans, or personal loan. This is a common misconception — many new homeowners expect to use their CPF for renovation. Plan your renovation budget as a fully cash/loan exercise.
How is a renovation loan different from a personal loan?+
Renovation loans and personal loans are both unsecured but differ: Renovation loan: specifically for home renovation; capped at S$30,000 by MAS; lower interest rate (3%–5% flat); paid disbursed to contractor (not directly to borrower in most cases); requires renovation quotation/invoice. Personal loan: general purpose; capped at 6× monthly income; typically higher rate (3.5%–10%+); disbursed to borrower; no renovation restriction. If you need more than S$30,000 for renovation: use a renovation loan up to the cap, then top up with a personal loan for the excess (at a higher rate).
Is renovation loan disbursed to me or the contractor?+
Most Singapore banks disburse renovation loans to the contractor directly (or via a designated contractor account), not to the borrower. This is to ensure the funds are used for actual renovation work. Process: (1) submit contractor quotation to bank; (2) bank approves loan; (3) bank disburses to contractor’s account upon receiving renovation contract; (4) contractor proceeds with work. Some banks may disburse in stages (30%–50% upfront, balance on completion). This means: (1) ensure your contractor accepts bank disbursement; (2) confirm the contractor’s bank account details; (3) keep receipts — some banks request proof of renovation completion before final disbursement.
What renovation works require an HDB permit?+
HDB renovation permits are required for: (1) Structural works: hacking, removal, or alteration of structural walls; (2) Wet area works: flooring in bathrooms and kitchen (to prevent water seepage to neighbours below); (3) Electrical: adding or altering electrical points; (4) Gas: any gas pipe works; (5) Air-conditioning: installation on external walls; (6) Doors and windows: in certain locations. Works that do not need a permit: painting, flooring of dry areas (non-wet areas), furniture installation, false ceilings in non-designated areas. Check the HDB’s Renovation Page for the current full list. Starting permit-required works without HDB approval risks penalties and compulsory reinstatement.
When should I use a shorter vs longer renovation loan tenure?+
Shorter tenure (1–2 years): lower total interest; higher monthly payment; best if you can comfortably afford the higher instalment. On S$30,000 at 3% flat: 1yr monthly = S$2,575; 2yr = S$1,300; 3yr = S$903. Longer tenure (4–5 years): lower monthly payment; higher total interest; best if your cash flow is tight (new homeowner with multiple expenses simultaneously). Most financial advisors recommend 3 years as the optimal balance — the monthly payment is manageable (~S$900 for S$30K at 3% flat) and total interest is kept reasonable. Avoid 5-year tenure unless cash flow is very constrained — the extra interest adds up with no additional value.
Can I get a renovation loan before getting my keys?+
You can apply before key collection for a renovation loan, but most banks require the loan to be disbursed only after keys are received (since the contractor can only start work after key collection). Some banks allow pre-approval before keys, with disbursement scheduled at key collection. This is useful to get the financing confirmed and the interest rate locked before engaging contractors (contractor quotations often have 1–3 month validity). Check with your bank: some offer “progressive disbursement” — disbursing loan amounts as renovation milestones are completed, which can be beneficial for cash-flow management.
Does a renovation loan affect my TDSR?+
Yes. A renovation loan is an unsecured personal loan. Its monthly repayment is counted in your TDSR (Total Debt Servicing Ratio, capped at 55% of gross income). Example: income S$6,000/mo. TDSR limit = S$3,300/mo. Mortgage = S$2,200/mo. Renovation loan (S$30K, 3yr) = S$903/mo. Total debt = S$3,103 = 51.7% of income — within TDSR. If renovation loan were S$30K at 5yr = S$596/mo, total = S$2,796 = 46.6% — more headroom. The renovation loan reduces your available TDSR for other debt. Apply for the mortgage first, then the renovation loan post-key collection to avoid TDSR complications during mortgage approval.
What is the typical renovation cost for different flat types in Singapore?+
Typical Singapore renovation costs (2024–2026): BTO 3-room: S$20,000–S$35,000; BTO 4-room: S$30,000–S$55,000; BTO 5-room: S$40,000–S$70,000; Resale 4-room (extensive): S$50,000–S$100,000+; Private condo: S$60,000–S$150,000+; Landed property: S$150,000–S$500,000+. The S$30,000 renovation loan cap covers basic to mid-range BTO renovations but is insufficient for extensive resale or private property renovations. For renovations above S$30,000: supplement with cash savings, credit card instalment plans (0% interest for specific purchases), and personal loans for any remaining gap.
Can I take multiple renovation loans?+
Yes — MAS’s S$30,000 cap is per loan per property, and you could theoretically take renovation loans from multiple banks. However: (1) total unsecured borrowing is capped at 12× monthly income across all lenders (combined personal loan + renovation loan + credit cards revolving balance); (2) each lender will check your credit bureau report (CBS) and see existing renovation/personal loans; (3) taking multiple renovation loans on one property may raise red flags for lenders. In practice, most banks allow one renovation loan per property per occasion. If you need a second round of renovation financing (e.g., 5 years later), you can apply for a new renovation loan after the first is repaid.
Is renovation loan interest tax deductible?+
For owner-occupied residential property: no — renovation loan interest is not tax deductible. For investment (rental) property: renovation costs and loan interest may be deductible as an expense against rental income, depending on whether the renovation is maintenance (deductible) or capital improvement (may qualify for capital allowance). This distinction is important: repainting and minor repairs = deductible; adding a new kitchen = likely capital expenditure. Consult a tax advisor for investment property renovation. Renovation loans for HDB flats are almost never for rental investment (HDB subletting rules apply separately).
Can I repay the renovation loan early?+
Yes — most Singapore banks allow early repayment of renovation loans. However: early repayment penalty: some banks charge a penalty of 1%–2% of the outstanding principal for early full settlement, especially within the first 12 months. Check the loan agreement terms before signing. Some banks charge no penalty for partial early repayment (paying extra each month) as long as you continue regular instalments — only full lump-sum redemption may incur a fee. If you come into cash mid-way (e.g., from a bonus), paying down the renovation loan early saves interest and improves your debt-to-income ratio for other credit applications.
What documents does a bank need for a renovation loan?+
Required documents: (1) NRIC; (2) last 3 months’ payslips or latest NOA; (3) HDB OTP/S&P or private property S&P (proof of property ownership or purchase); (4) contractor quotation (detailed, on contractor’s letterhead with itemised works and amounts); (5) HDB renovation permit (if applicable, for permit-required works); (6) CPF statement (some banks request). The quotation is critical: banks want to ensure the renovation loan funds actual renovation work. A vague quotation (“renovation works S$30,000”) may be rejected — the quotation should itemise: carpentry, flooring, electrical, painting, etc. with unit costs.
What if I change contractors mid-renovation?+
Changing contractors mid-renovation is complex when a renovation loan is involved: (1) the bank disbursed (or will disburse) to the original contractor’s account; (2) if the original contractor has been partially paid, the bank cannot easily redirect outstanding disbursements to a new contractor; (3) any undisbursed loan balance requires bank approval to redirect to a new contractor (submit new quotation, new contractor’s bank details). This process takes time and may hold up your renovation. Prevention: vet your contractor thoroughly before signing — check reviews, verify registration, get references. Never pay the full renovation cost upfront — progressive payment milestones protect you if the contractor defaults or performs poorly.
Are licensed moneylender renovation loans different from bank loans?+
Licensed moneylenders (LML) in Singapore can provide personal loans for any purpose (including renovation) but under different MAS rules: (1) Interest rate cap: max 4% per month (not per year) on the outstanding principal; (2) Loan amount: if annual income < S$20,000, max loan = S$3,000; if S$20,000–S$30,000, max = 2× monthly income; if > S$30,000, max = 6× monthly income; (3) fees are capped; (4) total cost capped at 100% of principal. LML loans are for emergency situations — they are much more expensive than bank renovation loans. A 4% monthly rate = ~48% p.a. effective rate vs bank renovation loan at 5.46% EIR. Always use a bank renovation loan first; LML is a last resort only.

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Legal Disclaimer & Editorial Transparency. Renovation loans capped by MAS at S$30,000 or 6× monthly income (whichever lower). Unsecured personal loan product. EIR ≈ flat rate × 1.82 (approximate for equal monthly instalment loans; actual EIR varies by bank and tenure). Bank rates and terms change frequently — get written quote before commitment. CPF cannot be used for renovation. HDB renovation requires HDB renovation permit for specified works. HDB-registered contractors required for HDB flat renovation. Disbursement typically to contractor (not borrower directly). Early repayment penalties may apply (check loan agreement). MAS licensed moneylender rates: max 4% per month — far higher than bank renovation loans. All calculations indicative. Not financial advice. Operated by MAFHH INTERNATIONAL LTD.