HDB Renovation Loan: 5 Minutes Guideline

The best thing we can invest in during these trying times is a safe space to protect us from the virus. HDB properties are among the best purchases that can provide us with an excellent and safe space to rest and remain productive.

There are many reasons why people choose to invest in HDB properties in Singapore. However, sometimes HDB properties are not designed to suit our specific needs and taste to meet our comfortable living requirements. Wanting to renovate this space is only natural, but it will involve high costs. Thankfully, Singapore’s financial institutions can help you with excellent financial products.

Does HDB provide renovation loan?

No, HDB provides housing loans, not renovation loans. So how can you finance your renovation project? Some people may not have sufficient funds to cover the expenses. Make sure you consider all the options before deciding on certain financing.

When it comes to financing, there are many options available in the market today. Some of these are the following.

1.Bank Renovation Loan

A bank renovation loan is when a bank lends you money to renovate your home to increase your home’s value. You get to keep the loan proceeds after the renovations have been completed and repay the bank with interest. Because they’re made for the sole purpose of renovation, bank renovation loans have a shorter payment term than personal loans.

2.Bank Personal Loan

A personal bank loan is a type of consumer credit typically unsecured and issued by a bank or other financial institution. The amount of the personal loan is often six months of your monthly salary. However, the terms and conditions and the interest rate are determined by the individual financial institution.

3.Licensed Moneylender Personal Loan

A personal loan that Singapore’s licensed money lenders can provide to you. These are easy to get because they have no high credit score requirements and offer you six months of your monthly salary.

Are renovation loans interest free?

Similar to selecting the best mortgage loan with the best rates, selecting a renovation loan is no different. You will need to explore the market to select a renovation loan package that gives you the best bargain.

Select Your Interest Rate Type

A major point that ought to be taken into account when selecting your loan package is whether you want to take a loan with a flat interest rate or a monthly rest calculation rate.

1. Monthly Rest Calculation Rates

Monthly rest calculation rates mean that the interest charged is based on the current outstanding, while a flat interest rate monthly rest calculations mean that the interest charged throughout the entire period is the same.

2. Flat Interest Rate

The flat interest rate may seem to be the better of the two, but applicants who dig deeper into the effective interest rate may find the result to be otherwise.

For example, a loan amount of $30,000 and 3 years from POSB based on a monthly interest rate calculation, the total interest to take the loan is $2,682 for the 3 years. The effective interest rate for this would be 5.62% per annum.

On the other hand, if you were to take a flat interest rate package such as RHB’s at 2.98% (as of 2020) per annum with the same loan amount and time frame, the effective interest rates come up to 6.31%.

This shows that even though the flat interest rates appear to be more cost-effective, the effective interest rates turned out to be the better deal.

So when selecting your home renovation loan package, select the rest rate type that best suits your purpose, whether it is to be based on monthly interest calculations or a flat interest rate.

HDB Renovation Loan Criteria in Singapore

In order to qualify for a renovation loan, a Singaporean bank will require the applicant to:

  • Own a property
  • Be a Singaporean Citizen or PR
  • Have a good credit score
  • Fulfil the minimum income requirement (bank dependent)

There are also limitations on what the loan can be used for, including:

  • Electrical works and wiring
  • Tiling, flooring and painting
  • Basic bathroom fittings
  • Property’s external compounds

HDB Renovation design ideas

You’ve always had this mindset that having an affordable space in Singapore means not being able to invest in its aesthetic value. Interior design and a cheap HDB flat just don’t go hand in hand. You simply can’t have everything, can you? That’s where you’re wrong. Everyone deserves a home designed especially to cater to their tastes and preferences, a place they can be excited about going home to. It doesn’t have to be expensive. You don’t have to stress yourself over buying this or that because great design doesn’t have to come at a high cost.

This is why we value these three things the most:

  • Creativity
  • An affordable solution
  • High quality

Affordability coupled with sheer creative genius is what we’re aiming at. However, it wouldn’t be complete without the high quality work we ensure for all of our clients.

To prove our point, allow us to show you the most popular HDB interior designs we’ve done. You can integrate this to transform your home or you can give us a quick call to talk more about how you’re envisioning your HDB flat to be.

4 Room HDB Resale Renovation Ideas

We love designing new homes where the homeowners give us freehand to add our own experimental twist. This 4 room hdb renovation ideas has tons of examples showcasing what happens when form and function meet.

The first thing to admire in this 4 room HDB flat design layout is it’s striking colour scheme. Picked dark navys to adorn the 4 room hdb renovation ideas. The foyer wall and the kitchen cabinet are painted in deep blues while the yellow contrasts it beautifully.

The dining room has a lighter blue wash to it. This helps it to fit in as a transitional shade and is a great way to create a soothing environment in this 4 room HDB. On that note, the couple had not noticed the kitchen backsplash until the last day and it took them by surprise. It was, of course, love at first sight!

One of the 4 room hdb renovation ideas, suggested by the designer, was to have a fuss-free bedroom.If you open for experimentation, add a quirky wallpaper to give this soothing bedroom a focal point. The nightstands on either side of the bed have oodles of storage while a dresser stands on the same wall.

3 Room HDB Renovation

3 Room HDB are one of the most popular options amongst new homeowners thanks to its appreciation and availability, but optimising its space can be tricky. Whether you’re a die-hard Muji fan or a film buff that lives and breathes Wes Anderson’s movies, you can take a leaf out of these designs to make your abode really feel like home.

It’s no secret that 3-room BTOs are small, and with the standard HDB flat layouts we’re given to work with, trying to renovate your new home can feel pretty limiting. But that doesn’t have to equate to boring spaces or cluttered interiors. From storage hacks to beautiful and thoughtful design-planning, there are many ways to make use of the space you’re given. Read on for inspiration on how to make the most out of your new home.

Install carpentry with hidden storage compartments

While some would argue that clutter makes a home, having things strewn about would no doubt make your home look messier. Take notes from this clever home in Bidadari – it features a bay window seat with (hidden) storage compartments and a raised platform with a platform-to-ceiling wardrobe in the bedroom.

Create a mini walk-in wardrobe in your bedroom

Typically, walk-in wardrobes take up a whole room, but this contemporary home managed to include one by partitioning their bedroom in half, with their sleeping area on a separate raised platform.

Use matching laminates for a cohesive look

Instead of demarcating your living and dining spaces, consider blurring the lines with matching laminates for that seamless look. This Toa Payoh BTO added storage seating from their TV console-cum-feature wall and power sockets for a cozy, cafe-like WFH corner.

Consider flexible built-ins

Planning your home layout in accordance to how you would live in it day-to-day gives you more clarity on what you want to prioritize in your home. If you spend lots of time in the kitchen, install bulky kitchen appliances like your fridge and oven outside instead.

Keep it bright with a light colour scheme

Another hack to make your humble abode look bigger and more inviting, is to keep it bright and airy. Having a light colour scheme helps to make your home look more cohesive and spacious.

5 Room HDB Renovation Ideas

From household shelters to suggested studies, 5-room HDB flats may run the risk of looking too cookie-cutter. Not a fan of seeing your home resembling the ones next door? This is how you can make your home stand out from the crowd!

Hacking down the walls in your flat

It goes without saying that 5-room flats come with more square footage. But, if you fancy an even bigger space, try hacking a bedroom down and making it part of your living room. This way, you’ll have plenty of space to host gatherings!

Create a dual kitchen space

Flush your bigger appliances, such as the fridge and coffee machine, into custom cabinetry so they take up less space. By keeping them close together, it’ll also make it a lot easier to brew a cuppa and grab some cake for your guests when they come over!

Adopt an unconventional bedroom layout

This beautifully renovated property changed things up by half-hacking a wall and turning the bedroom into a walk-in wardrobe instead. Nestling the bed behind the half-hacked wall ensures the bedroom still retains a touch of privacy.

We hope you found this guideline useful! If you have another question, then look no further. Book an online consultation with Todzterior today. Todzterior will helped you answer the question of what is a fitted wardrobe interior layout in Singapore. For more details on wardrobe units, contact Todzterior today!

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