Best Ways To Get Renovation Loan?

Though the renovation of home has become popular in Singapore due to increase number of shows organized by the designers and the sets seen in TV series but these projects are not inexpensive, irrespective of their size. Many people start their home improvement projects from lower level like redecorating or painting their home but sometimes new renovations get add up very quickly to make it a bigger project. While starting with any type of home renovation, big or small, your first priority should be to really stick to your budget. You can plan your renovations within your budget by getting the idea of its costs online through various home remodeling websites.

As per various surveys it is observed that usually home renovation projects in Singapore end up at about 20-30% higher than your budget, no matter how much was your initial budget. Main reason behind this increase in budget can be the increasing costs quality materials required for this purpose. You can safely complete your home renovation project respectfully by planning it according to your resources. But if it had exceeded your limits due to any reason then get it financed through various types of renovation loans available these days to complete the project unharmed.

You can get best deals on home renovation loan by shopping around through all the options available to you. The purpose of such borrowings can be divided into two categories – first to buy things on credit cards and the other is to use credit facilities and financing offered by various stores. But there are several other ways through which you can finance your home renovation project.

Brief information about some of the best ways to get renovation loan in Singapore is provided here under for your consideration. It will make it easy for you to get loan if you are planning to renovate your home in near future.

Personal loan:
It is one of the commonest ways used by homeowners to complete their home renovation project. It is a better option for renovation loan as compared to financing the project through credit card. Though the interest rate of personal loan depends on market conditions but still it is always lower than other loan options. The fixed and lower interest rate of personal loans as compared to credit card loan normally allows you to plan your repayment properly and use the credit on your credit card for your daily needs. You may not get personal loan from any bank but there are many online lenders who offer personal loans at easy and reasonable terms, even at lower interest rates than traditional banks, to the borrowers with good credit score.

Secured loan:
Another option to get renovation loan is secured or mortgage loan that can be taken against the equity in your property. This option will allow you to take substantial amount of loan for your home improvement than you can get through an unsecured loan. You can also enjoy the benefit of lower interest rate and monthly repayments through this loan option.

Financing by dealer or contractor:
Sometimes large dealers and contracted service providers also finance home renovation projects. The dealer from where you buy materials and other accessories required for your home renovation can grant you home renovation loan to complete the project according to your needs. Some big contractors in Singapore also offer loans to their clients to complete their renovation projects. Securing your renovation work can be one of the motives to finance the clients, due to the competitive market conditions in Singapore. You can repay this loan along with interest in easy installments, though such loans carry higher interest rates.

Refinance mortgage for home improvement:
In order to complete home renovation project some homeowners refinance their mortgage to get renovation loan at attractive and fixed interest rate for long term. You can repay this type of loan for home improvement in next 20-30 years along with availing the benefit of tax deduction on its interest. But you will have to repay considerably higher amount of interest against this loan as it is repaid slowly for a long time.

Loan in home equity line of credit:
Another best option to get home renovation loan at reasonable terms is home equity line of credit. You can borrow loan against the equity value of your property at low and variable interest rate. Your property is used as collateral to borrow loan certain percentage of its equity value. You can get this loan up to your credit limit at a very reasonable interest rate, much lower than other options, for the full period of time. But people living in these homes since long or who can make significant down payment can get these loans, due to reducing worth of residential properties these days. The major drawback of this loan option is that you can lose your property if you failed to repay it back within stipulated time period. You will have to repay them responsibly to enjoy its benefits.

Bank loans:
Another handy way to get home renovation loan in Singapore is getting it from regular consumer Bank. These loans are more beneficial for the borrowers who want to borrow smaller amounts of money to complete their home renovations with least delay and paperwork. These loans are normally approved to be paid back within few months or years instead of long time slots like 20-30 years.

Low but fixed interest rate loans:
This loan option is especially for the homeowners in Singapore who have no or very little equity on their property. Such homeowners are eligible to get home renovation loan at low interest fixed rate to gat finances to complete the project.

Thus you can chose the best and most suitable home renovation loan from the options discussed in this write-up to complete your project in Singapore within your timeline and budget. While selecting any of these options you should consider their interest rate, schedule of repayment and your monthly payback capability so that you can easily get rid of it as per your plans.