For the first time since moving into your new home, you feel the urge to transform it into a brand new place. Some of your home’s necessities, such as flooring, may need to be replaced or repaired. You may also need to upgrade your kitchen appliances like a refrigerator. However, this decision also means you will spend money.
What can you do to raise the money you’ll need to complete a full-scale renovation? A home renovation loan in Singapore is an option if you’re seeking financing for such a large undertaking. But how do you get started, and where do you even begin?
How does a home renovation loan work?
This type of loan is to help homeowners finance home renovation projects, as the name implies. If you want to build the home of your dreams, you can use this as an additional fund aside from the money you already have. It is also a good alternative if you don’t have enough money.
A money lender in Singapore typically offers cheap interest rates. Although it is an unsecured loan, you don’t have to worry about lenders coming to your home and selling it if you can’t pay.
If your application is accepted, you can only use the money to refurbish your home. To get a loan, you’ll first need to figure out how much money you’ll need and to check your credit score.
Your remodelling loan may be accepted even if your credit score is poor, but the interest rate will be higher than the regular fees.
How much does a home renovation loan cost?
A home renovation loan in Singapore typically costs between 2% percent interest rates with a S$1000 processing fee if you are to borrow S$10,000. The monthly repayments on your loan sum depend on the period you prefer.
Depending on how long it takes to pay off a property loan, renovations can fluctuate greatly. Compared to a regular refinance, a remodelling or improvement project may take longer to pay off, such as 36 months.
However, the interest rates on these loans are subject to change depending on market conditions and the length of the payback period. Although home values may not rise throughout this time, you can fully pay off the in-house loan improvement.
Compared to personal loans, a home improvement loan has a specified objective. It can achieve a reduced interest rate since the lender has a better idea of the borrower’s financial situation.
It would be best to only make transactions with a licensed money lender in Singapore before deciding on your application to avoid paying high-interest rates.
What are the things you can pay with a home renovation loan?
Why you need a home renovation loan in Singapore depends on what you need to get fixed. Here are some of what you can use it for:
1. Selling property
Are you preparing to put your home on the market and want to get the most money for it? You can do a few things to increase the value of your home for potential buyers, such as remodelling. Consider seeing a licensed money lender in Singapore to give the house a facelift before potential buyers begin touring it.
2. Roof repair or replacement
Since your roof gets exposed to different weather, they are prone to damage over time. In addition, even minor leaks can damage the roof and weaken the structure, leading to collapse. Having the roof fixed as soon as possible is critical to avoid more significant problems down the road.
3. Floor restoration
One of the reasons homes’ flooring wears out so quickly and must get repaired frequently is the high foot traffic. Repairing damaged flooring as soon as you find them is ideal for preventing further harm. Replace the floor with a new type if you can access a money lender in Singapore.
4. A need for a new plumbing system
It’s better to seek a renovation loan than wait for the plumbing issue to worsen because you don’t have the money. You will have the budget to either repair the leaks or even decide to replace your whole plumbing completely.
5. Modifications to the structure
Do you see any signs of mould or cracks? You may need to reconstruct your walls as soon as possible. It can also be an option to extend your home’s space.
6. Fix appliances
Anything else, such as appliances such as an air conditioner, refrigerator, washing machine, or furniture you would need to pay for, can cover a home renovation loan in Singapore. Addressing any faulty appliance can help ensure that it will last you for a long time instead of ignoring any minor damage.
With home improvement loans, you can do everything from installing new floors to adding new interior and exterior features to redesigning your décor to installing new lighting fixtures to remodelling your bathroom or kitchen, to name just a few of the many possibilities.
When is it time to look into getting a home renovation loan?
Finding a money lender in Singapore is ideal if the renovation saves you money in the long run or raises your home’s worth. You need to consider increasing the property value if you decide to sell it in the future.
It’s also a good option if you want to save money in the long term or make your property more secure. The necessary repairs should benefit you in the coming years.
However, when dealing with lenders, you must avoid rushing the process. Obtain quotes from several lenders, and remember that renovations can be more expensive and time-consuming than anticipated when you first started.
Like taking out a debt consolidation loan in Singapore, you need to ensure that you are confident enough to repay the exact amount during the given period if you want to be debt-free.
Transform your home with the help of Monetium Credit!
Are you looking for a licensed money lender in Singapore? See the offers of Monetium Credit! Their services are now available online, so you can get the money you need anytime. They can provide fair and informed advice on their financial needs, regardless of the type of loan you seek.