Renovation Loan

Frequently Asked Questions

PURPOSE
To finance renovation costs of residential properties. The loan can be used for:

Electrical & wiring work
Built-in cabinets
Painting & redecorating works (e.g. wallpaper)
Structural alterations

External works within compound of the house
Flooring & tiling
Basic bathroom fittings
Plumbing works

* Loans cannot be used for: payment of furnishing costs or any other purposes besides renovation

ELIGIBILITY CRITERIA

Singaporean or Permanent Resident, age between 21 and 65 years old, earning a gross annual income of at least S$24,000. Applications from foreigners are not accepted.
Borrower must be owner of property to be renovated
Can be applied jointly; joint borrower should be an immediate family member (parent, spouse, child or sibling) or a joint owner of the property. No minimum income criteria for joint applicant.

RENOVATION CONTRACTORS

For HDB properties, per HDB guidelines, only HDB Licenses Renovation Contractors are allowed to carry out renovation works in HDB flats, regardless of whether a HDB Renovation Loan Permit is required.
HDB’s list of approved contractors is published at http://www.hdb.gov.sg/bn25/isos118p.nsf/BN25FLRChome?openform
All contractors' quotations must be signed & accepted by the contractor & applicant respectively
The original quotation shall be retained by the bank

LOAN FEATURES

Interest rate
Prevailing interest rate of 7.8% p.a. and calculated on monthly rest basis

Loan amount

Up to 6 times of your fixed monthly income or S$30,000, whichever is lower.
Applicants can apply separately with an immediate family member. Each applicant is eligible for a loan amount of up to $30,000; therefore the amount granted can be up to $60,000.
Minimum loan amount is $5,000

Loan tenure
The loan can be repaid up to a maximum period of 5 years by monthly instalment. The loan tenure is subject to the approved loan amount.

Quantum	Duration Allowed
$5,000	12-24 months
>$5,000 - <$15,000	12-36 months
$15,000 and above	12-60 months

Fees deducted upfront from approved loan amount upon disbursement

Handling Fee

1% of approved loan amount

Insurance Premium

1% of approved loan amount

In the event of death or total permanent disability, AVIVA will pay off your outstanding renovation loan balance

Illustration:

Renovation Loan Amount	- $10,000
Fees deducted upfront	- Handling Fee (1% of $10,000) = $100 - Insurance Premium (1% of $10,000) = $100
Disbursed sum	- $9,800 ($10,000 - $100 - $100)

LOAN APPROVAL & DISBURSEMENT

Loan proceeds will be disbursed directly to the contractors via cashier’s order
Maximum of 3 cashier’s order to be issued
It costs $5 for the second and third cashier’s order

POST-DISBURSEMENT
Site visits will be conducted for all approved applications to ensure that proceeds from the loan are used for the stated renovation works

Other Fees Payable
Cancellation Fee	1% of approved loan amount
Prepayment Charge	1% of outstanding loan amount (Partial prepayments are not allowed)

APPLICATION DOCUMENTS & SUPPORTING DOCUMENTS REQUIRED

Completed and signed Renovation Loan Application form
Photocopy of all the applicants’ NRIC (front & back) for new customers only
Income evidence
For salaried employees
- Latest computerized pay slip or
- Latest 12 months’ CPF contribution history statement or
- Last 2 years’ Notice of Assessment
For self-employed/commissioned earners/variable income earner
- Last 2 years’ Notice of Assessment
Original invoice or quotation from the contractor duly signed by contractor and applicant

Proof of ownership of property to be renovated by way of 1 of the following documents:

HDB Flats	Private Properties
i. HDB Sales & Purchase Agreement	i. Sales & Purchase Agreement
ii. HDB Sales Order	ii. Property Tax Bill*
iii. Property Tax Bill*
iv. HDB Financial Plan
v. HDB Renovation Permit^@
vi. HDB Collection Advice

* For existing property requiring renovation and no change in ownership
^@ Must be provided if borrower is a contractor renovating his HDB flat/HDB flat that is jointly owned