Minimize Home Renovation Expenses |Loans for Home Renovation

Loans | Renovation Loans

Renovating a home is a daunting task. It requires a lot of effort and most importantly a huge amount of money. Moreover, home renovations can be costly. The cost varies depending on the work you want to be done. Also, it varies on the materials used, whether hacking is involved, and whether your flat is a new Build To Order (BTO) or a resale property. In this blog, we discuss how you can minimize home renovation expenses.

How Do We Plan our Budget for Home Renovations?

To stay within budget, always try to minimize or eliminate unnecessary work. Please keep in mind that these costs do not include your furnishings and appliances. Also, minus costs on other miscellaneous items like electronics, digital locks, smart home, decor items, and so on. These are all expenses that are typically not covered by your contractor/interior designer (ID). In short, anything not included in your contractor’s or ID firm’s renovation quotation, will not be covered by a renovation loan.

If you’re on a tight budget, here are some ideas to help you save money on renovations.

Ways to Minimize Home Renovation Expenses:

Look for the most Competitive Quotes

Don’t go with the first renovation contractor or interior design firm you come across. Obtain at least three quotes from different vendors. Even if the prices are low, you should double-check to see if there are any exclusions. Go for a company where you negotiate the best price, and if the company is reputable and has positive reviews.

Choosing Between Must-haves and Nice-to-haves

As an extension of the preceding point, prioritize all critical renovation work before considering additional work for aesthetic purposes. For example, if you need to do your flooring, don’t skimp on it. However, instead of marble/parquet, you can always choose homogeneous tiles or vinyl. Do you really need cove lights when a standard light fixture will suffice? By removing this nice-to-have feature, you can not only save money but also reduce the amount of cleaning you’ll have to do the next time.

Cut Down on Your Lavish Plans

Everyone wants their home to look like their dream palace. But that’s not monetarily feasible always. Decide which is more important to you, a feature wall in your living room or hacking work to expand your kitchen. If more space is your priority, consider removing the feature wall for practical reasons.

Do Thorough Calculations

Fix your budget basis your income. Based on your monthly salary and/or savings, how much can you actually afford to pay? If you require S$20,000 in cash and can afford monthly repayments of up to S$400, adjust your budget/loan amount accordingly.

The maximum loan amount you can be granted for a renovation is six times your monthly salary, or S$30,000, whichever is less. Home renovations can be expensive, especially if you want to renovate a larger, resale flat that needs extensive hacking, flooring, carpentry, plumbing, and electrical works. If you need that bit of extra funds for a successful renovation, having the financial support of a personal loan can come in handy! However, with the above-mentioned measures, you can minimize home renovation expenses and opt for a low amount personal loan.


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