Renovation Loan Calculator
Estimate the monthly repayment on a Singapore renovation loan — and how much you can borrow — using the common bank convention of 6× monthly income capped at SGD 30,000, over a 1 to 5 year tenure at the effective interest rate.
Renovation Loan Calculator
Repayment & eligibility · 2026
Indicative only. Renovation loan quantum, tenure, and rates are set by each bank, not by a single regulator, and change frequently. An outstanding renovation loan also counts toward your TDSR when you apply for a property loan. Check live rates with your bank.
Loan Summary
5 YRRepayment over the tenure
Each monthly payment covers interest on the outstanding balance plus part of the principal. This shows the yearly split of principal and interest.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| Year 1 | SGD 3,649 | SGD 825 | SGD 16,351 |
| Year 2 | SGD 3,817 | SGD 658 | SGD 12,534 |
| Year 3 | SGD 3,992 | SGD 482 | SGD 8,542 |
| Year 4 | SGD 4,175 | SGD 299 | SGD 4,367 |
| Year 5 | SGD 4,367 | SGD 107 | SGD 0 |
How much you can borrow
Renovation loans are unsecured personal loans for home improvement. The quantum and terms are bank underwriting conventions rather than statutory limits.
| Item | Typical convention |
|---|---|
| Maximum quantum | 6× monthly income or SGD 30,000, whichever is lower |
| Tenure | 1 to 5 years (up to 60 months) |
| Processing fee | Typically 1% to 2% of the loan |
| Use of funds | Renovation and home improvement works |
| TDSR treatment | Counts as a debt in a later property loan application |
Indicative rates and fees
Rates change frequently and vary by bank and promotion. The figures below are indicative market ranges, not official regulator figures — always confirm live rates with the bank.
| Item | Indicative range |
|---|---|
| Advertised flat rate | ~1.8% – 4.5% p.a. |
| Effective interest rate (EIR) | ~3.5% – 6% p.a. |
| Processing fee | 1% – 2% |
| Maximum quantum | 6× income, capped SGD 30,000 |
| Tenure | 1 – 5 years |
Flat rate vs effective interest rate
Banks often advertise a flat rate, which looks lower than the true cost. The effective interest rate (EIR) reflects that you repay the loan gradually, so interest is charged on a falling balance.
| Concept | What it means |
|---|---|
| Flat rate | Interest charged on the full original amount for the whole tenure |
| Effective interest rate | The true annual cost on the reducing balance — roughly double the flat rate |
| Why they differ | You repay principal each month, so your average balance is about half the original |
How the repayment is worked out
The monthly repayment is the standard reducing-balance instalment on the loan at the EIR over the tenure.
| Step | Formula |
|---|---|
| Maximum eligible loan | Lower of (6 × monthly income) and SGD 30,000 |
| Monthly repayment | Loan × r ÷ [1 − (1 + r)−n] |
| Total interest | (Monthly repayment × n) − loan |
| Processing fee | Fee % × loan |
| Total cost of loan | Total interest + processing fee |
Renovation Loan Quantum, Tenure & Rates
The borrowing conventions Singapore banks typically use for renovation loans — quantum, tenure, and cost. These are indicative market conventions, not statutory figures; the one hard rule is that a renovation loan counts as a debt in your TDSR.
How Much You Can Borrow
The quantum conventions most banks apply to a renovation loan.
Cost of the Loan
Indicative market ranges — always confirm live figures with the bank.
Loan Terms
Structure and treatment of a Singapore renovation loan.
Eligibility — What Banks Typically Look For
A renovation loan is an unsecured personal loan for home improvement works. The quantum and terms below are bank underwriting conventions rather than statutory limits, and vary by lender and promotion.
| Item | Typical convention | Notes |
|---|---|---|
| Maximum quantum | 6× income / SGD 30,000 | Whichever is lower |
| Tenure | 1 to 5 years (up to 60 months) | Set by each lender |
| Use of funds | Renovation & home improvement | Not for general spending |
| Loan type | Unsecured personal loan | No property pledged |
| TDSR treatment | Counts as a debt | In a later property loan application |
Indicative Rates & Fees
Rates change frequently and vary by bank and promotion. The figures below are indicative market ranges, not official regulator figures — always confirm live rates with the bank.
| Item | Indicative range | Type |
|---|---|---|
| Advertised flat rate | ~1.8–4.5% p.a. | Indicative |
| Effective interest rate (EIR) | ~3.5–6% p.a. | Indicative |
| Processing fee | 1–2% | Indicative |
| Maximum quantum | 6× income, capped SGD 30,000 | Indicative |
| Tenure | 1 to 5 years | Indicative |
Flat Rate vs Effective Interest Rate
Banks often advertise a flat rate, which looks lower than the true cost. The effective interest rate (EIR) reflects that you repay the loan gradually, so interest is charged on a falling balance.
| Concept | What it means |
|---|---|
| Flat rate | Interest charged on the full original amount for the whole tenure |
| Effective interest rate | The true annual cost on the reducing balance — roughly double the flat rate |
| Why they differ | You repay principal each month, so your average balance is about half the original |
Latest updates
Singapore Renovation Loan News & Updates
Recent changes that affect this calculator, each summarised from its announcement and linked to the source.
No changes affecting this calculator have been listed in the last 12 months.
Renovation Loan — Frequently Asked Questions
Common questions about Singapore renovation loans — how much you can borrow, tenure, effective vs flat interest rates, fees, and how the loan interacts with your TDSR. Quantum and rate figures are indicative bank conventions.
A renovation loan is an unsecured personal loan offered by Singapore banks to pay for home improvement and renovation works. Because it is unsecured, no property is pledged as collateral. The loan quantum, tenure, and interest rate are set by each bank as underwriting conventions rather than by a single regulator.
MoneySense — BorrowingSingapore banks typically cap a renovation loan at 6 times your monthly income or SGD 30,000, whichever is lower. So if you earn SGD 4,000 a month, 6× income is SGD 24,000 and that would be your ceiling; higher earners are still capped at SGD 30,000. This is a common bank convention, not a statutory limit, and can vary by lender.
MoneySense — BorrowingRenovation loans typically run over a 1 to 5 year tenure (up to 60 months). A longer tenure lowers your monthly repayment but increases the total interest paid over the life of the loan. The available tenure is set by each lender and is an indicative convention rather than a regulated figure.
MoneySense — BorrowingA renovation loan is intended for renovation and home improvement works — such as flooring, built-in carpentry, painting, electrical and plumbing works, and fittings. It is not a general-purpose personal loan. Banks may ask for renovation quotations or contractor invoices, and some disburse the funds directly to the contractor.
MoneySense — BorrowingThe flat rate is charged on the full original loan amount for the whole tenure, so it looks lower. The effective interest rate (EIR) is the true annual cost on a reducing balance, reflecting that you repay principal each month. Because your average balance is about half the original, the EIR is roughly double the flat rate.
MoneySense — BorrowingBecause you repay the loan gradually. With a flat rate, interest is calculated on the full original amount even though your outstanding balance falls each month. The EIR corrects for this by charging interest only on the balance still owing. As a rule of thumb, EIR is about 2 times the flat rate — a 2% flat rate is roughly a 4% EIR.
MoneySense — BorrowingNo. There is no single official renovation loan rate in Singapore. The rates shown — roughly 1.8% to 4.5% flat, or about 3.5% to 6% EIR — are indicative market ranges from banks, and they change frequently by lender and promotion. Always confirm the live rate with the bank before deciding.
MoneySense — BorrowingMost renovation loans carry a one-off processing fee of about 1% to 2% of the loan amount — SGD 200 to SGD 400 on a SGD 20,000 loan. Some lenders also charge late payment or early redemption fees. Include the processing fee when comparing the total cost of a loan across banks. Fee levels are indicative and vary by lender.
MoneySense — BorrowingYes. When you apply for a property loan, an outstanding renovation loan repayment is counted as a debt in your Total Debt Servicing Ratio (TDSR). TDSR caps your total monthly debt repayments at 55% of gross monthly income, so a renovation loan reduces the property loan you can service. This is the one hard MAS rule that applies to renovation loans.
MAS — TDSRNo. Unlike the 55% TDSR limit or the HDB concessionary loan rate, there is no MAS-set renovation loan rate or quantum. The SGD 30,000 cap, the 6× income rule, the 1 to 5 year tenure, and the interest ranges are all bank conventions. The only MAS rule that applies is that the loan counts as a debt in your TDSR.
MAS — TDSRThe monthly repayment is the standard reducing-balance instalment: Loan × r ÷ [1 − (1 + r)−n], where r is the monthly EIR (annual EIR divided by 12) and n is the number of monthly payments (tenure × 12). Total interest is the sum of all repayments less the loan amount, and the processing fee is added on top to give the total cost.
MoneySense — BorrowingThe relationships behind the repayment estimate. Actual terms are set by your bank.
Maximum Eligible Loan
Lower of the income multiple and the absolute cap.
Indicative bank convention, not statutory
Monthly Repayment
Reducing-balance instalment at the EIR.
r = EIR ÷ 12; n = tenure × 12
Total Interest
All repayments less the loan amount.
Over the full tenure
Total Cost of Loan
Interest plus the one-off processing fee.
Processing fee typically 1–2%
Important Disclaimer
For educational and informational purposes only. This tool produces estimates of the monthly repayment, total interest, processing fee, and total cost of a Singapore renovation loan, along with an indicative maximum quantum. It uses the common bank convention of 6× monthly income capped at SGD 30,000, a 1 to 5 year tenure, and a reducing-balance repayment at the effective interest rate you enter.
No warranty of accuracy. Renovation loan quantum, tenure, interest rates, and fees are indicative market conventions set by individual Singapore banks, not statutory or regulatory figures, and they change frequently by lender and promotion. This tool is provided "as is" without any express or implied warranty as to accuracy, completeness, or timeliness. The indicative rate ranges (roughly 1.8% to 4.5% flat, or about 3.5% to 6% effective) are for illustration only and are not offers of credit. Always confirm live rates and terms directly with the bank.
Not financial advice. Information provided is general in nature only and does not take into account your personal objectives, financial situation, or needs. Results do not constitute financial, credit, or borrowing advice, and this tool does not compare or recommend any specific lender or product. The one regulatory point that applies is that an outstanding renovation loan counts as a debt in your Total Debt Servicing Ratio when you apply for a property loan, per the Monetary Authority of Singapore.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense arising from reliance on this tool or the information it produces. Users are responsible for verifying all figures with their lender before relying on them. Use is subject to our Terms of Use.
Official data sources
Renovation loan quantum, tenure and rates are indicative market conventions from Singapore banks, not statutory figures, and change frequently. The TDSR treatment is a MAS rule. Confirm live rates with your lender.